Running head: ASIA, A HAVEN FOR U.S. PHARMACEUTICAL COMPANIES
Asia, a Haven for U.S. Pharmaceutical Companies Outsourcing
Abstract
Outsourcing is the concept of taking ones internal company functions and paying an outside firm to handle them. The overall Increasing costs in drug development and regulatory challenges in the U.S. have driven U.S. pharmaceutical Companies to look to India and China as viable alternatives for parts of their drug development processes. Some initial uncertainties like language/cultural barrier, ethical and Intellectual Property issues stall the outsourcing process. However, other benefits like overall cost savings especially in R&D and clinical trial, cheaper skilled labor and increased turn around time for drug approval encourage outsourcing. There is increased evidence that suggests that Pharma outsourcing to India and China is thriving and will continue into the future.
Asia, a Haven for U.S. Pharmaceutical Companies Outsourcing
Outsourcing is the concept of taking ones internal company functions and paying an outside firm to handle them. Outsourcing enables a company to save money, improve quality, or free company resources for other activities. Outsourcing started in the data-processing industry and spread to other areas, including telemarketing, call centers and most importantly in the pharmaceutical industry for both research and manufacturing. Pharmaceutical companies outsource their R&D, manufacturing and most importantly their clinical trials to their two main destinations, which are India and China. Besieged by ever-increasing cost pressures and regulatory challenges in the west, the rise of India and China as global economies presents immense opportunities for the pharmaceutical industry. The co ...