November 30, 2005
Pharmaceutical industry leaning towards outsourcing services
Services in the arenas of finance/accounting, logistics and human resources, and IT are now being provided by contract research organizations (CROs), and the pharmaceutical industry is taking advantages of these services to counter the problems of rising costs of drug development and increasing drug discovery times. CROs have contributed their expertise in geographic coverage, making it possible for researchers situated at far-flung areas to access data simultaneously and thereby cutting down on the reporting time.
According to research firm Frost & Sullivan, outsourcing permits pharmaceutical companies to reign in their expenditure and utilize funds effectively. The European outsourcing trend points to an expansion of the European drug discovery outsourcing market to about 5.1 billion by 2011.
However, there is also some hesitancy among companies to adopt the outsourcing model because it is feared that outsourcing might lead to loss of control over processes. In the light of this, it is important that companies evaluate the track records of outsourcing service providers before committing to a contract.
Frost & Sullivan published its report on "The European Active Pharmaceutical Ingredients Market" and Outsourcing Trends in early November. This document includes the revenue forecast for the total European active pharmaceutical market with geographic trends and analysis, new opportunities in the sector, market challenges, and positive strategies. The report analyses about 40 key market participants, including Akzo Nobel Pharma, Amgen, Aventis, DuPont Pharmaceuticals, Merck & Co, Inc., Roche, and Pfizer.
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