Reasons For Outsourcing
Shailesh KD et al. / IJPPDR / 4(1), 2014, 15-19.
e-ISSN: 2249-7625
Print ISSN: 2249-7633
International Journal of
Pharmacy Practice & Drug Research www.ijppdr.com REASONS FOR OUTSOURCING IN PHARMACEUTICAL
INDUSTRY
Shailesh Kumar Develpalli*¹, Malathi Jojula2, Bucha Reddy Ponakunti3
¹Sr. Manager in General Administration Ricon Pharma Private Limited India, Hyderabad, Andhra Pradesh, India.
²Department of Pharmacy Microbiology, Sri Shivani College of Pharmacy, Warangal, Andhra Pradesh, India.
³Department of Business Administration, Andhra Vidyalaya College, Hyderabad, Andhra Pradesh, India.
ABSTRACT
Pharmaceutical companies have to undergo a lot of research and development activities prior to releasing a new drug. They also need to conduct clinical trials prior to getting’s nod for releasing drugs into the market. Large companies tend to outsource their non-core activities to third party service providers who can carry out these activities cheaply. The most common forms of pharmaceutical outsourcing are CROs contract research organization and CMOs contract research manufacturing. This involves R&D outsourcing and manufacturing of medication such as pills, tablets, capsules, etc. This is beneficial for both large multi-national pharmaceutical companies as well as smaller ones. By outsourcing their non-core activities to third party service providers, the pharmaceutical companies can concentrate on the drug discovery and focus on other competencies like marketing their new drugs. The study included of about 40 pharmaceutical R & D outsourcing companies. Survey was conducted from 2009 to 2012. Out of 40 pharmaceutical outsourcing companies, 25 pharmaceutical
R & D outsourcing companies were from India and remaining 15 pharmaceutical R & D outsourcing companies were from outside of the India mostly from USA.
Keywords: R & D Outsourcing, Pharmaceutical industries, CROs, CMOs, Cost Saving, Time Saving.
INTRODUCTION
“A company which assigns some of its non-core
e-ISSN: 2249-7625
Print ISSN: 2249-7633
International Journal of
Pharmacy Practice & Drug Research www.ijppdr.com REASONS FOR OUTSOURCING IN PHARMACEUTICAL
INDUSTRY
Shailesh Kumar Develpalli*¹, Malathi Jojula2, Bucha Reddy Ponakunti3
¹Sr. Manager in General Administration Ricon Pharma Private Limited India, Hyderabad, Andhra Pradesh, India.
²Department of Pharmacy Microbiology, Sri Shivani College of Pharmacy, Warangal, Andhra Pradesh, India.
³Department of Business Administration, Andhra Vidyalaya College, Hyderabad, Andhra Pradesh, India.
ABSTRACT
Pharmaceutical companies have to undergo a lot of research and development activities prior to releasing a new drug. They also need to conduct clinical trials prior to getting’s nod for releasing drugs into the market. Large companies tend to outsource their non-core activities to third party service providers who can carry out these activities cheaply. The most common forms of pharmaceutical outsourcing are CROs contract research organization and CMOs contract research manufacturing. This involves R&D outsourcing and manufacturing of medication such as pills, tablets, capsules, etc. This is beneficial for both large multi-national pharmaceutical companies as well as smaller ones. By outsourcing their non-core activities to third party service providers, the pharmaceutical companies can concentrate on the drug discovery and focus on other competencies like marketing their new drugs. The study included of about 40 pharmaceutical R & D outsourcing companies. Survey was conducted from 2009 to 2012. Out of 40 pharmaceutical outsourcing companies, 25 pharmaceutical
R & D outsourcing companies were from India and remaining 15 pharmaceutical R & D outsourcing companies were from outside of the India mostly from USA.
Keywords: R & D Outsourcing, Pharmaceutical industries, CROs, CMOs, Cost Saving, Time Saving.
INTRODUCTION
“A company which assigns some of its non-core
References: 1. Manmohan. Pharma outsourcing: Going the telecom way? Published in theoutsourceblog.com, 2010. website: http://www.theoutsourceblog.com/2010/08/pharma-outsourcing-going-the-telecom-way/ 6. Feliza M. Drug R&D is increasingly outsourced to India. Published in icis.com, 2008, website: http://www.icis.com/Articles/2008/07/07/9137384/drug-r.html 11. Bruce C. Pharma Outsourcing on Upward Trajectory. Published in Genetic engineering and Biotechnology news. 2008, website:http://www.genengnews.com/gen-articles/pharma-outsourcing-on-upward-trajectory/2547/