| Richard Barratt and Natalie Kingston at Morgan Lewis examine the use of outsourcing in the life sciences industry
The life science industry is in a state of constant flux – largely as a result of an unrelenting need for innovation and the threat of competition, both of which can have a dramatic impact on a life science company’s profits and future. History has shown that companies, whether pharmaceutical, biotechnology or device focused, must find ways to adapt and be flexible in this challenging environment in order to truly prosper.
THE IMPORTANCE OF OUTSOURCING TO THE INDUSTRY
In the last decade there have been two important developments in practices in the life science sector. The first of these has been a shift in focus away from pure innovation in favour of strategic partnerships and acquisitions as a means of growing product portfolios and increasing market presence. The second has been a move to drive down costs by outsourcing internal processes and procedures, thereby freeing up funds for selective R&D projects and to fund strategic partnerships and acquisitions. As a result, outsourcing of critical functions is now a key strategy for most life science companies.
The types of operations which life science companies can outsource are many and varied. Numerous functions have long been outsourced to contract research or similar organisations – clinical trial and data management, pharmacovigilance and quality assurance processes are a few examples. However, the more recent advent of offshore outsourcing to countries such as India and South America, and the focus on larger outsourcing arrangements of mainstream finance and accounting, human resources, information technology and other business processes, has led life science companies to realise the benefits of outsourcing these types of functions as well. |
