Outsourcing Scientific Research Contributes To Explosive Industry Growth
Scientific researchers are facing a new paradigm in quest for new developments in the pharmaceutical and biotechnology industry. An evolving and increasingly complex regulatory environment and a rapidly growing and intensely competitive market pose significant challenges for the pharmaceutical and biotech industry. As a result, more drug manufacturers are considering outsourcing as a way to reduce costs, increase agility, reduce time-to-market, and boost their return on investment. Hence, these companies are now exploring the strategic value of outsourcing to support their business strategies. Key drivers behind the outsourcing trend in the pharmaceutical/biotech industry include:
Scientific research outsourcing include a gamut of services such as affinity analysis, market share analysis, branding and positioning analysis, contract research and clinical trials, to name a few. Most of the research and development initiatives are addressed through clinical data management services and analytics offerings that provide meaningful data insights. Outsourcing these activities offers the ability to maximize resources and access new product areas. All these services help drug manufacturers invest strategically on research budgets for pipeline and mature products and resources for developing and mature products. It enables them to lay out detailed activity timelines and breakdowns per product development phase.
Research and Development
In recent times, many major pharmaceutical companies have remodeled their research and development operations. These companies have embarked on outsourcing research and development to contract research organizations to de-risk their R&D efforts via external, outsourced resources.
The worldwide outsourcing demand for preclinical research and development is growing fast. Clinical trials are considered to be a critical phase in a new drug development process. A large patient population, various disease profiles and robust infrastructure is required to conduct these trails successfully. As a result, Asian countries such as India and China are the numero uno destinations for pharmaceutical companies for new drug development.
Time and Cost Advantage
The cost of drug development is estimated at US$1bn, and clinical trials on humans account for about 40% of the total cost. Outsourcing clinical research to emerging countries enables pharmaceutical companies to considerably reduce costs. Clinical trials in India, for instance, cost 50% to 60% less than the average cost in the US. Moreover, clinical trials can last up to 10 years. The best way to reduce time is to recruit patients quickly, which is increasingly difficult to achieve in Western countries.
Maximizing the return on investment requires a more adaptive and collaborative relationship between pharmaceutical companies and their external partners. By forming strategic relationships with outsourcing partners, pharmaceutical companies can focus on core competencies, access specialized expertise, focus on issue imperative for survival and reduce burn rates that lead directly to greater shareholder value.
Outsourcing is now viewed as a strategic tool that offers flexibility in production, satisfies growing demands, and enhances a company’s competitive advantage. According to a market research report, the global market for pharmaceutical and biopharmaceutical contract manufacturing, research and packaging was valued at USD219.9 billion in 2012 and is expected to reach USD 242.2 billion by 2013. Based on the past growth trend and the future outlook of this industry, it is expected that collaborative partnerships will blossom the pharmaceutical and life sciences industry remarkably.
– Back office Pro