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Competition and differentiation: the key for success


It has been widely recognized that the global pharmaceutical industry has been experiencing dramatic changes due to the need to face a number of challenges: discovering a new medicine has become more and more difficult and costly, which translates to low R&D productivities; and a number of blockbuster drugs have lost their patent protections, resulting in the loss of a big chunk of sales revenues and operating profits in most major pharma companies. During remodelling their R&D and manufacturing operations, major pharma companies all have realized that outsourcing is both a successful and an efficient way to operate R&D and manufacturing. It helps them quickly reduce the fixed cost, immediately have access to the external resources including the latest technologies and talents around the world, and thus significantly improve their operation flexibility. It is thus appropriate to say that drug companies now more rely on the outsourcing service providers than ever to fulfil their tasks, solve their problems, and improve their efficiency and productivity. It is thus believed that the globe-wide demands for outsourcing services, both contract R&D and manufacturing, w ...