Opportunities Beyond Cost Savings
Posted by | Fuld & Company
Maximizing the Strategic Value of Global R&D Outsourcing
With the globalization of the pharmaceutical industry, most of the arguments for research and development (R&D) outsourcing have focused on the cost-saving benefits that U.S.-based pharmaceutical firms can enjoy if they outsource their R&D. Much less discussed are the more strategic, value-enhancing benefits of global R&D outsourcing — new drug discoveries, patient recruitment, new market opportunities unique to local environments and even potential new sources of funding. Indeed, in an industry where R&D expenses comprise roughly one-third of total costs, we have reached a point of inflection where R&D management has to be viewed with a fresh perspective.
The trend towards greater global outsourcing of the R&D function within pharmaceutical companies is well-documented. In just the past few months, several large multinational pharmaceutical companies have announced plans to double if not triple the percentage of the work that they currently outsource. For example…
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