September 29, 2011: What are manufacturers in the Pharma industry waiting for? Datamonitor study has brought out this point strongly in their latest study.
A research study by Datamonitor says that there is enough scope and opportunities for the Pharma sector companies to use outsourcing, which have not been exploited to the maximum. These findings came out as a result of a survey conducted by the Datamonitor on the Pharma sector and current outsourcing strategies followed by the sector.
As per the latest study report by the research firm, Pharma companies have to make new strategies to tap the benefits available in the outsourcing. Depending entirely on integrated outsourcing models will help companies which are into drugs and medications to enhance manufacturing drugs, promoting and selling dugs and also enhance clinical trails. There are also options for these companies to outsource non core functions such as HR, finance and others related functions.
The report also added that companies can go for outsourcing drug discovery functions. There are service providers available both in the onshore and offshore market which are well advanced to do in-depth research and come up with new drugs and medications. Off course, there are major risk factors also because any minute mistake by the service providers can even end up in disaster. But the complexity and effort faced by drug manufactures in producing drugs can be minimized to half if they go for outsourcing.
However in the offshore, there is a visible increase in the number of vendors which has world class research and development teams for drug manufacturing. Countries such as India, China and Russia are being considered as the most preferred locations for outsourcing drug manufacturing. But on the emerging locations, Datamonitor points out that the companies looking for outsourcing must be more conscious as the emerging locations host many issues. Apart from the common issues such as the cultural difference and communication problems there is an also major issue regarding IP Protection in the offshore outsourcing market. Thus the reports suggest that to avoid such constrains it would be more preferable for the companies to depend on the nearshore outsourcing service providers.
It is obvious that the nearshore market can provide immense benefits but the report also put emphasis on threats in nearshore. Companies should put more effort to learn about the vendor because there are many in the nearshore with little experience in drug manufacturing and related jobs. The report concluded with a note that service buyers should understand the IP protection and related legal formalities in every country before building strategies on outsourcing drug manufacturing to that particular country.