Pharma Outsourcing

As we see more and more drugs coming off the patent blocks in the next 24 months, generic drugs are going to make a quick and popular entry in the high-cost world of pharmaceuticals. With increased pressure on reducing drug prices and more than $80 billion worth of global blockbuster drugs facing US patent expiration by 2008, branded pharmaceutical companies are beginning to understand and deal with the implications of this shift in economics. Global industry analysts estimated that pharmaceutical and biotechnology companies spent approximately $57 billion on R & D in 2006.

The average cost to develop a new drug still remains close to $900 Million. Along with the need to decrease costs, the pharmaceutical companies are also hoping to increase their success-rate. Only 21.5% of drugs that begin Phase 1 of Human Clinical Trials eventually get approved for marketing.

This has prompted the industry to look towards outsourcing Drug Discovery, Clinical Research and Clinical Trial processes. The global Pharma Outsourcing business currently stands at $24 Billion and could reach $53 Billion by 2010.

India is emerging as one of the most attractive destinations for Pharma Outsourcing. After the IT and Technology boom, the mushrooming of Biotech firms, Clinical Research Outsourcing Companies and Contract Research and Manufacturing facilities has brought the spotlight on this nation, once again. It has been estimated that the cost of doing clinical trials in India is 40-60% lower than in the developed world.

Technology Holdings undertakes the following types of engagements in the Pharma Outsourcing industry:

• Assist Pharma Outsourcing companies with identifying potential strategic acquirers.
• Assist US outsourcing companies with acquiring offshore outsourcing capabilities.
• Assist companies and private equity funds with identifying strategic investment and acquisition opportunities in the Pharma Outsourcing space.