Thursday, April 19, 2007

Biotech Firms Continue to Outsource Drug Development for Another 2 Yrs – E&Y

According to a survey published by Ernst & Young (E&Y), a UK-based professional services company, about 77 percent of companies have agreed that they will continue to outsource their key drug development activities for another 2 years. However, about 65 percent are still dependent on contract research organizations (CROs) to carry out such activities. The survey was conducted among 400 executives from biotech companies across the US, Canada, and Europe.

Improved efficiencies and reduced costs were identified as major factors driving biotech firms to outsource drug development functions. This will create huge opportunities for CROs.

Among the key findings, the percentage of biotech firms outsourcing this function will increase from about 16 percent at present to 36 percent over the next 2 years. In addition, it was evident from the survey that various biotech firms will continue to rely on contract sales organizations (CSOs) to outsource their sales force to achieve benefits, such as efficiency gains, expertise, speed, flexibility, and avoiding capital outlay.

According to another study conducted by HighTech Business Decisions, a US-based consulting firm, several pharma and biotech firms will continue to depend on contractors for assisting them in biomanufacturing processes, such as clinical, preclinical, and early-stage drug development functions.

No comments: