PRTODAY / NewswireToday Free press release distribution service network

Written by / Agency / Source: Frost & Sullivan

Check Ads Availability|e-mail Article


Are you the owner of this article?, Turn it PREMIUM with your LOGO instead - and make it 3rd party Ads-Free! within the next hour!

Big Pharma Looks for Strategies to Fight the Decline - In an effort to survive declining profits and drug failures, the pharmaceutical industry is turning to layoffs and outsourcing. While many consider these trends a knee-jerk reaction, people who pull the strings in these companies have a different view of
Big Pharma Looks for Strategies to Fight the Decline

 

NewswireToday - /newswire/ - London, United Kingdom, 2008/09/10 - In an effort to survive declining profits and drug failures, the pharmaceutical industry is turning to layoffs and outsourcing. While many consider these trends a knee-jerk reaction, people who pull the strings in these companies have a different view of.

   
 
Your Banner Ad Here instead - Showing along with ALL Articles covering Pharma/BioTech/Nutrition Announcements

Replace these Affiliate Programs at ANYTIME! Your banner here within the next hour. Learn How!


 

Rising healthcare expenditures have become a major concern to European governments. While price regulations and generic manufacturers are doing a great job in reducing costs for governments, the companies developing drugs have not helped themselves.

"One accusation directed towards these companies is that they have been focusing on developing drugs for the so called 'costly' diseases, which have a very low patient population to cater to," says Frost & Sullivan (healthcare.frost.com) Research Analyst John Paul. "While acquiring an orphan drug status has its own advantages, the cost of developing and marketing such a drug outweighs the revenue it would generate."

In addition, the drug approval process for 'small molecule' drugs is not getting any better, the cost has increased and the possibility of lawsuits and withdrawal is much higher. Together with the impending patent expiries of several top drugs, pharmaceutical companies are being forced to look for efficiency in operation.

Pharmaceutical companies have realised that their strength lies in the later stages of product development and are cutting their costs by outsourcing both their manufacturing and R&D activities, particularly to Asia. Frost & Sullivan estimates that the cost of employing an experienced R&D person in China or India is 10 times cheaper than in the Europe or the US.

"For instance, AstraZeneca has turned to China and announced investments of $100 million in R&D," says Paul. "GSK is building a fully integrated, end-to-end R&D center in China that will employ more than 1,000 staff by 2010."

Layoffs in pharmaceutical companies are performed with the intention of redirecting the costs into R&D. However, the management of drug development and other late-stage processes in several therapeutic areas is not an attractive option. Considering that European governments are giving significant support to biotech start-ups, pharma giants are seeing the acquisition of these companies as a better proposition than developing their own pipelines.

"Pharma giants, in an effort to acquire the most promising drugs in the market, are paying over and above the value of these companies," says Paul. "Merck's acquisition of Sirna Therapeutics for $1 billion is just one example."

Many promising biotech start-ups are also doing their best to attract big pharma companies to acquire their technology, pipeline or the company itself, thereby sidestepping the costs of marketing. Biotech IPOs are not attracting much attention and they are under constant pressure to find a return on investment for their stakeholders.

"Be it layoffs or outsourcing, the pharmaceutical industry is geared up to fight the decline," says Paul. "Governments should however step up efforts and encourage companies, by means other than just tax incentives, to produce quality R&D. For the moment, the pharmaceutical industry has to be in fighting trim until the investments in R&D start producing results."

If you are interested in Frost & Sullivan's analysis of the pharmaceutical industry and its services to help companies meet market challenges, then send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's TEAM Research, Growth Consulting and Growth Team Membership™ empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.

 
 
Your Banner Ad Here instead - Showing along with ALL Articles covering Pharma/BioTech/Nutrition Announcements

Replace these Affiliate Programs at ANYTIME! Your banner here within the next hour. Learn How!


 

Written by / Agency / Source: Frost & Sullivan

 
 

Availability: All Regions (Including Int'l)

 

Traffic Booster: [/] Quick Newswire Today Visibility Checker

 

Distribution / Indexing: [+] / [Company listed above is a registered member of our network. Content made possible by PRZOOM / PRTODAY indexing services]

 
 
# # #
 

 
  Your Banner Ad showing on ALL
Pharma/BioTech/Nutrition articles,
CATCH Visitors via Your Competitors Announcements!


Big Pharma Looks for Strategies to Fight the Decline

Company website links NOT available to basic submissions
It is OK to republish and/or LINK any newswire for any legitimate media purpose as long as you name Newswire Today and LINK as the source.
 
  Is this your article?
Activate ALL web links and social stream by Upgrading to Press Release PREMIUM Plan Now!

|
Publisher Contact: Patrick Cairns 
+27 18 468 2315 patrick.cairns[.]frost.com
 
Newswire Today - PRZOOM / PRTODAY disclaims any content contained in this article. If you need/wish to contact the company who published the current release, you will need to contact them - NOT us. Issuers of articles are solely responsible for the accuracy of their content. Our complete disclaimer appears here.
IMPORTANT INFORMATION: Issuance, publication or distribution of this press release in certain jurisdictions could be subject to restrictions. The recipient of this press release is responsible for using this press release and the information herein in accordance with the applicable rules and regulations in the particular jurisdiction. This press release does not constitute an offer or an offering to acquire or subscribe for any Frost & Sullivan securities in any jurisdiction including any other companies listed or named in this release.

Pharma/BioTech/Nutrition via RSSAdd NewswireToday - PRZOOM Headline News to FeedBurner
Find who RetweetFollow @NewswireTODAY



Are you the owner of this article?, Turn it PREMIUM with your LOGO instead - and make it 3rd party Ads-Free! within the next hour!


Read Latest Articles From Frost & Sullivan / Company Profile


Read Pharma/BioTech/Nutrition Most Recent Related Newswires:

U.S. FDA Approves New Indication for Ipsen’s Somatuline® Depot (lanreotide) Injection for the Treatment of Carcinoid Syndrome
Genentech Provides Update on First Lampalizumab Phase III Study for Geographic Atrophy, an Advanced Form of Age-Related Macular Degeneration
mProve Health and Greenphire Partner to Deliver a First-of-its-Kind Patient Engagement Solution
FDA Approves Genentech’s Actemra (Tocilizumab) for the Treatment of CAR T Cell-Induced Cytokine Release Syndrome
Greenphire Named to Inc. 5000 for Fifth Consecutive Year
Five Community Health Centers Honored for Innovative Approaches to Medication Therapy Management
FDA Grants Priority Review for Genentech’s Gazyva in Previously Untreated Follicular Lymphoma
ProSci Incorporates Flow Cytometry Screening to Custom Monoclonal Antibody Service
FDA Grants Priority Review to Genentech's Emicizumab for Hemophilia A with Inhibitors
BD Expands Suite of Blood Culture Offerings with New BD BACTEC™ Standard Aerobic & Standard Anaerobic Plastic Bottles
Twist Bioscience Collaborates with Synbio Technologies to Supply Long DNA to Customers
FDA Grants Priority Review and Breakthrough Therapy Designation for Zelboraf (vemurafenib) in Erdheim-Chester Disease with BRAF V600 Mutation
Ipsen Receives Positive CHMP Opinion for Approval of Xermelo® (telotristat Ethyl)
BD Receives FDA 510(k) Clearance for New Immunological Diagnostic System
Positive Phase III Results for Genentech’s Emicizumab in Hemophilia A Published in The New England Journal of Medicine

Boost Your Social Network
& Crowdfunding Campaigns


LIFETIME SOCIAL MEDIA WALL
NewswireToday Celebrates 10 Years in Business


PREMIUM Members


Visit  BizJobs.com

Visit  JobsWare.com





 
  ©2017 Newswire Today — Limelon Advertising, Co.
Home | About | Advertise/Pricing | Contact | Investors | Privacy/TOS | Sitemap | FRANCAIS
newswire, PR press releases distribution service magazines engine news alert newsroom press room breaking news public relations articles company news alerts newswiredistribution ezine bizentrepreneur biznewstoday digital business report market search pr firms agencies reports distri-bution today investor relation successful internet entrepreneurs newswire distribution prtoday.com freenewswiredistribution asianewstoday bizwiretoday USA pr UK today - NOT affiliated with PRNewswire as we declined their partnership offer in 2013
 
PRTODAY & NewswireTODAY are NOT affiliated with USA TODAY (usatoday.com)