The cost of drug development has long been a concern and a discussion point with CEOs. However, the current financial crisis has made the cost of drug development and the reduction in venture capital backing a topic for serious discussion in conference rooms at Biotech/Pharma companies around the world. Other industries have outsourced their back-office support operations such as, IT, finance, accounting, human resources and call centers but the Biotech/Pharma Industry has been slow to jump on board. The challenges that face the Biotech/Pharma Industry has been that it is highly regulated and, system integration for this industry can be costly. However, the cost savings of out sourcing has been reported to be up to as much as 35%. Given this, top-level decision makers in these companies may need to be initiators of change.
Area that have routinely been outsourced in this industry are,
- Areas of pre clinical Development
- Late stage Clinical Trial Management including drug supply
- cGMP production
- Drug delivery development, Biomarker development and Diagnostic Development
Biotech/Pharmaceutical companies will need to define an outsourcing strategy and move beyond the “standard practice” approach in an effort to implement cost saving measures.