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Outsourcing Pharmaceutical R&D: Risks and Rewards

5 DEC 2013
Career Path : Healthcare

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This week’s AAPS blog shows how outsourcing to emerging markets makes way for small start-ups to grow, and for diversification to thrive in a market monopolized by pharma giants:

“GlaxoSmithKline, Novartis, Johnson & Johnson, and Pfizer have taken the lead in outsourcing an increasing number of operations. It has become commonplace for them to outsource testing and trials, and other processes associated with clinical research. But now, with the upcoming patent expirations of numerous brand name drugs, industry giants are once again hoping to expand the conventional limits of outsourcing. They are casting their eyes eastward, looking to contract off-shore services for a sector once seen as completely off-limits for outsourcing: Research and Development.”

According to the blog post, Outsourcing Pharmaceutical R&D, outsourcing a wider array of functions allows smaller companies, not just in Asia but also in the West, to gain traction and grow.  Both abroad and at home, small companies are benefiting from the trend, which helps local economies to grow and provides employment for local talent. In addition, start-ups are known to provide quicker services, unhampered by the kind of bureaucratic red tape that often slows production in pharma giants.