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Biomedical Outsourcing Can Cut New Drug Research Costs Greatly

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New drug research is complex system engineering, including compound research, preclinical research, clinical research, drug registration application and approval, and post-marketing research, with the features of long cycle and high cost and risk.

According to a survey of Tufts Center, the average cost of new drug research has risen from $ 802 million in 2003 to $ 2.558 billion in 2010.

Biomedical Outsourcing Can Cut New Drug Research Costs Greatly

Frost & Sullivan’s data shows that the choice of CRO outsourcing can generally reduce the clinical trial time by 20% -30%. At the same time, risk can be scattered in the all aspects of R&D chain. When the investment cost is relatively reduced, the risks of pharmaceutical companies have been transferred partly.

CRO enterprises have a large number of drug researches of various stages of professionals, which can be flexible distribution for pharmaceutical companies to choose according to their needs. CRO industry needs to invest a lot of capital equipment which leads a certain huge scale effect and that is their own economic cost advantage compared to pharmaceutical companies R&D department.

So, R&D outsourcing has gradually become an important R&D model, and has accepted by more and more pharmaceutical companies.

PAREXEL Company has conducted a survey of executives from several pharmaceutical companies, showing that 65% of executives believe that their company will continue to increase the share of outsourcing of drug research and development in the next five years; 31% of executives believe that the company will maintain the current level of outsourcing, only 4% of executives believe they will reduce the share of outsourcing. CROs help pharmaceutical companies acquire the lack of capacity (healing technology) within the company, reduce fixed costs or use of internal resources, improve global reach and accelerate time to market.

Based on the improvement of CRO’s corporate service capabilities and the increased recognition of pharmaceutical companies, the penetration rate of the global CRO industry has steadily increased from 18% in 2006 to 44% in 2015, and this figure is expected to reach by 2020 54% which means that more than half of the R&D work will be outsourced to CROs.

Medicilon has been recognized as one of the top drug discovery contract research organizations (CRO) in China and is managed by a team of scientists with a wealth of experience in US-based pharmaceutical and biotechnology companies. As our areas of expertise and service capabilities continue to expand, more and more pharmaceutical and biotechnology companies have taken advantage of our integrated drug discovery and development services.

With professional workmanship, personal communication and unparalleled dedication to each and every client, we strive to enhance the field of drug discovery to ensure a healthier world.

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