Big pharma’s 40-year love affair with outsourcing everything, must end
otherwise investors will take their money elsewhere
Trialsite News Interview from 2 years ago
About two years ago, I was interviewed by Megan Redshaw, here:
Drug Development Expert Sounds Alarm Over Rushed-to-Market COVID-19 Vaccines
The hypothesis was that Big pharma’s 40-year love affair with outsourcing everything must end, otherwise investors will take their money elsewhere.
Why—three main reasons
Pharma manufacturers divested their physical storage, logistics and distribution skills and assets to the wholesaler network. Through consolidation, this network is now dominated by three major corporations – McKesson, Cardinal, and AmerisourceBergen. Pharma manufacturers’ crucial link with the users of its products has been lost.
Outsourcing drug development and commercialization activities to Contract Research Organisations (CROs) and Contract Development and Manufacturing Organisations (CDMOs) has created a highly complex network of third-party contractors working on a fee-for-service basis. These tactical, arms-length relationships have res…