Biotech, Outsourcing
Biotech CEOs expect increase in outsourcing
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Ernst & Young's (E&Y) new report: "Beyond Borders - Global Biotechnology Report 2007" was released this week. According to the report, biotech executives say they will increasingly rely on outsourcing for key drug development areas in the next two years.
77 per cent of companies surveyed said they expect to rely on outsourcing for clinical research in the next 24 months, while 70 per cent currently use contract research organisations (CROs) for this function.
As the industry continues to mature, the research showed that clinical development is also an area where companies anticipate significant growth in outsourcing, rising from 56 percent of companies to 71 per cent, the survey revealed.
What is more, the E&Y survey revealed that biotech companies will increasingly turn to outsourcing for their sales force.
In the last ten years sales force outsourcing to contract sales organizations (CSOs) has caught on as a tactical way for pharmaceutical firms to meet their short-term needs, said a recent report by market analysts Datamonitor.
Meanwhile, contract manufacturing is also a popular area for outsourcing as far as biotechs are concerned. 77 per cent of respondents said they were likely to use outsourcing within two years, while 65 per cent are currently relying on contract manufacturers.
These findings come on the heels of a recently published research on the US biopharmaceutical contract manufacturing market which showed that biotech companies increasingly rely on outsourcing to improve efficiency and reduce costs.
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