Navigation Links
Key Trends in Offshoring Pharmaceutical R&D: Company Strategies, Emerging Markets and Impact on ROI

NEW YORK, Oct. 26, 2011 /PRNewswire/ -- announces that a new market research report is available in its catalogue:

Key Trends in Offshoring Pharmaceutical R&D: Company strategies, emerging markets and impact on ROI

Key Trends in Offshoring Pharmaceutical R&D: Company strategies, emerging markets and impact on ROIs

Offshoring and outsourcing have become an increasingly critical contributor to pharma and biotech R&D strategies in recent years. They enable companies to focus on core competencies such as drug discovery or technology development whilst contracting out non-core processes to experts, often at lower costs. As offshore investments begin to mature and provide returns on investment, the opportunity to migrate individual components or whole segments of R&D portfolios will continue to rise.

'Key Trends in Offshoring Pharmaceutical R&D' is a report published by Business Insights that evaluates the offshore R&D strategies that can reduce development times and improve productivity, with analysis of a variety of strategic partnerships, academic collaborations, and outsourcing opportunities. This report identifies emerging areas of technological and scientific significance across the globe and examines the offshore strategies and investments of the top 20 pharma and biotech companies across Asia, Australia, Central and Eastern Europe, Latin America and the Far East. This report also provides a financial and managerial valuation of leading companies based on their P/E ratio, return on assets (ROA) and return on investment (ROI) and measures company performance against the healthcare industry, pharmaceutical and biotechnology sectors and leading shares of the S&P500.

Key Findings

-Companies that have allocated over 60% of their R&D expenditure offshore have displayed greater shareholder return, operating margins, market capital growth and return on assets.

-The US currently attracts 53% of total industry R&D spend, however it is forecast that 20% of this expenditure will migrate to Asia Pacific by 2010.

Australia, China and Singapore are emerging as key areas for scientific and technological investment.

-Leading pharma and biotech companies have undergone major R&D restructuring over the last five years and now adopt a focused, streamlined global approach which is increasingly reliant on offshore strategic partnerships, academic collaboration and outsourcing to establish networks of scientific expertise.

-Scientific and technological excellence within emerging economies is a key incentive for offshore investment, enabling companies to enhance innovation and productivity within their R&D programs.

-Managerial expertise is a critical factor driving the success of offshore investments, helping leading pharma and healthcare companies to outperform their peers and the S&P 500 index in 2008.

Use this report to...

• Assess the offshore R&D strategies of the top 20 pharma and biotech companies with this report's analysis of offshore investment and deal trends over the last five years.

• Discover which geographic regions have the greatest potential for offshore R&D

investment by identifying key areas of technological, scientific and academic expertise across Asia Pacific, Australia, Eastern Europe, Latin America, the Middle East and South Africa.

• Measure how the offshore strategies of the top 20 pharma and biotech companies have influenced their R&D productivity and efficiency with this report's financial and managerial performance review, comparative analysis of healthcare/pharma/biotech sectors and S&P500 index assessment.

• Identify the key drivers and opportunities for offshore investment with this report's analysis of major offshoring trends and R&D developments.

Explore issues including...

Shifting focus of R&D strategies. The industry has become more globalized in its R&D approach as part of efforts to improve productivity and efficiency. Networks of offshore partnerships and academic collaborations are now enabling companies to harness external expertise on a project by project basis.

Offshore investment in emerging economies. Companies are increasingly turning to emerging countries to counter the slowing growth of US and European markets. Investing in offshore R&D facilities provides companies with local expertise and a greater understanding of local economies.

Offshore opportunities in tertiary economies. The success of commercial opportunities in emerging markets has expanded the regional scope of investment, with Australia, Israel and Singapore all seen to provide labour arbitrage and access to specialists.

Focused managerial directives are critical. Successful R&D performance is underpinned by a streamlined R&D strategy which is well managed by a team of scientists, technologists and non-scientists which can guide global networks ensuring early go/no go decision making which builds on the core competencies of both internal and external researchers.


• Which countries are attracting offshore investment?

• Which areas of research and technology are attracting offshore investment?

• How are the leading pharma and biotech companies changing their R&D programs?

• Which major companies and academic institutions have attracted offshore investment?

• What factors are driving offshore investment?

• What is the financial performance of the leading pharma and biotech companies based on P/E ratio compared to their peers and the S&P500?

• Which companies have delivered the best return on assets and return on investment during the last five years?

• How will offshore investment influence R&D productivity in the future?

Table of Contents

Key trends in offshoring pharmaceutical R&D:

Company strategies, emerging markets and impact on ROI

Executive summary 10

Offshoring: what, where & why? 10

Company analysis 11

Market analysis 12

Valuation 13

Chapter 1 Trends in offshoring R&D 16

Summary 16

Introduction 17

The evolution of offshoring 17

Trends in offshore locations 19

The decision to offshore 21

Offshoring vs inshoring 23

Emerging R&D trends 25

Conclusions 28

Chapter 2 Leading pharma and biotech offshore R&D strategies 30

Summary 30

Introduction 31

Leading pharma & biotech company revenues 32

Leading R&D portfolios 34

Global R&D footprint 36

Returns on investment in the emerging economies 38

The impact of economic crisis on pharma's cash position 40

Johnson & Johnson 42

Revenue 42

Emerging markets 43

Deals 43

Pfizer Inc 45

Acquisitions 45

R&D strategy 46

Deals 48

Roche Holdings Ltd 49

Acquisitions 49

R&D centers 50

R&D strategy 50

Offshore deals 51

Sanofi-Aventis 52

Offshore strategy 52

Offshore R&D facilities 53

Novartis AG 54

R&D strategy 54

Offshore activities 55

Deals 56

Offshore acquisitions 58

GlaxoSmithKline plc 59

R&D strategy 60

Outsourcing 60

Offshore R&D facilities & deals 61

AstraZeneca Plc 62

R&D facilities 62

Offshore deals 64

R&D strategy 64

Merck & Co Inc 66

Restructuring 66

New commercialization model 66

Offshore R&D strategy & deals 67

Eli Lilly & Co. 68

R&D strategy 69

Deals 72

Wyeth 73

R&D strategy 73

Clinical research partnerships 74

Bristol-Myers Squibb Company 75

BioPharma model 76

Strategic acquisitions 77

Amgen Inc 78

JVs and partnerships 79

Schering-Plough 79

R&D investment 80

Deals & acquisitions 80

Abbott Labs 81

Deals 82

Genentech 83

R&D investment 83

Acquisitions 84

Novo Nordisk A/S 85

Venture capital 87

Bayer Schering Pharma AG 87

Biogen Idec 89

R&D evaluation 89

Partnerships and strategic alliances 90

Baxter International 92

Conclusions 94

Chapter 3 Offshoring hotspots and emerging markets players 98

Summary 98

Introduction 99

Globalization 100

Return on offshore R&D investment 102

Regional offshore investment deals 103

Asia-Pacific 104

China 105

India 106

Japan 107

Singapore 109

Australia 110

Eastern Europe 112

Latin America 113

Brazil 115

Middle East 116

Israel 116

South Africa 118

Conclusions 119

Chapter 4 ROI from offshoring R&D 122

Summary 122

Introduction 123

Key areas for return on investment 123

R&D valuation 128

Financial performance 130

Managerial performance 132

Conclusions 136

Index 138

List of Figures

Figure 1.1: Areas for R&D offshoring 18

Figure 1.2: Primary, secondary & tertiary investment 20

Figure 1.3: Key drivers for offshore investment 22

Figure 1.4: Balancing local and offshore investments 24

Figure 1.5: Trends in R&D 25

Figure 2.6: Pharma/biotech R&D intensity (%), 2007 33

Figure 2.7: Leading pharma mid-to-late-stage product pipelines (no. of late stage pipeline products), 2007 34

Figure 2.8: Leading pharma replacement power, 2007 35

Figure 2.9: Healthcare global R&D footprint 36

Figure 2.10: Accelerated growth in the Emerging Markets, 2006 38

Figure 2.11: Geographic diversification of leading pharma sales, July 2007-Jun 2008 39

Figure 2.12: J&J pharma sales (% share by product), 2007 42

Figure 2.13: J&J deals by type (no. deals), 2007 44

Figure 2.14: Origin of material of drugs by Roche, Genentech & Chugai, 2007 51

Figure 2.15: Novartis Pharma sales, 2007 54

Figure 2.16: Novartis deals, 2007 57

Figure 2.17: Merck's commercialization model, Dec 2007 67

Figure 2.18: Eli Lilly deals by type (no. deals), 2007 71

Figure 2.19: BMS biopharma model 2008 76

Figure 2.20: Schering-Plough deals by type (no. deals), 2007 81

Figure 2.21: Novo Nordisk's R&D strategy, 2008 85

Figure 2.22: Biogen's shareholder value creation plan 90

Figure 2.23: Baxter's global sales by region, 2007 92

Figure 3.24: Global R&D performance payoff for leading R&D spenders, 2005-2007 103

Figure 3.25: Location of offshore contract R&D (number of deals), 2004-2008 104

Figure 3.26: China offshore activity (% deals), 2004-2008 105

Figure 3.27: India offshore activity (% deals), 2004-2008 106

Figure 3.28: Japan offshore R&D activity (% deals), 2004-2008 107

Figure 3.29: Singapore offshore activity (% deals), 2004-2008 109

Figure 3.30: Australian offshore activity (% deals), 2004-2008 111

Figure 3.31: Eastern Europe offshore activity (% deals),2004-2008 112

Figure 3.32: Brazil offshore activity (% deals), 2004-2008 115

Figure 3.33: Israel offshore activity (% deals), 2004-2008 117

Figure 3.34: South Africa offshore activity (% deals), 2004-2008 118

Figure 4.35: Pharmaceutical R&D expenditure, average R&D expenditure per NAS launch, average

ROI per NAS (1988-2000) 124

Figure 4.36: New strategic and decision making models to target productivity issues 125

Figure 4.37: US pharmaceutical P/E ratios 130

Figure 4.38: US biotechnology P/E ratios 131

Figure 4.39: Leading companies over-performed ROA showed positive 5 year growth 132

Figure 4.40: Leading companies over-performed ROA showed negative 5 year growth 133

Figure 4.41: Leading companies over-performed ROI showed positive 5 year growth 134

Figure 4.42: Leading companies over-performed ROI showed negative 5 year growth 135

List of Tables

Table 1.1: Global technology research parks in secondary & tertiary countries 27

Table 2.2: Top 20 pharma/biotech revenues & R&D investment ($m), 2007 32

Table 2.3: J&J emerging economy sales growth (%), Q308 43

Table 2.4: J&Js recent R&D activities (ex US and top 5 European countries) 45

Table 2.5: Pfizer's recent R&D activities (outside the leading pharma countries) 48

Table 2.6: Roche's recent R&D activities (outside the leading pharma countries) 52

Table 2.7: Sanofi Aventis recent R&D activities (outside the leading pharma countries) 53

Table 2.8: Novartis AG recent R&D activities (outside the leading pharma countries) 58

Table 2.9: GlaxoSmithKline recent R&D activities (outside the leading pharma countries) 59

Table 2.10: AstraZeneca recent R&D activities (outside the leading pharma countries) 63

Table 2.11: Merck & Co recent R&D activities (outside the leading pharma countries) 68

Table 2.12: Eli Lilly recent R&D activities (outside the leading pharma countries) 72

Table 2.13: Wyeth's recent R&D activities (outside the leading pharma countries) 74

Table 2.14: Amgen recent R&D activities (outside the leading pharma countries) 79

Table 2.15: Abbott's recent R&D activities (outside the leading pharma countries) 82

Table 2.16: Genentech recent R&D activities (outside the leading pharma countries) 84

Table 2.17: Novo Nordisk's recent R&D activities (outside the leading pharma countries) 86

Table 2.18: Bayer Schering's recent R&D activities (outside the leading pharma countries) 88

Table 2.19: Biogen Idec recent R&D activities (outside the leading pharma countries) 91

Table 2.20: Baxter's worldwide facilities, 2008 93

Table 3.21: Top Ten R&D generators, users and importers (US$bn), 2007 100

Table 3.22: Latin American offshore agreements 114

Table 4.23: R&D productivity high and low benchmarks 126

Table 4.24: Valuation ratios by company 129

Table 4.25: Industry investment summary 137

To order this report:

Pharmaceutical Industry: Key Trends in Offshoring Pharmaceutical R&D: Company strategies, emerging markets and impact on ROI

More  Market Research Report

Check our  Real Time Industry Data

Nicolas Bombourg
US: (805)652-2626
Intl: +1 805-652-2626

SOURCE Reportlinker
Copyright©2010 PR Newswire.
All rights reserved

Related medicine technology :

1. Emerging Medical Devices Technology Trends - 2011
2. Pharmaceutical Key Trends 2011 - Biosimilar Market Overview
3. AccuNurse Delivers Real-Time Care Plan Functionality and New Dashboard to Monitor Clinical Trends, Performance and Compliance
4. Questcor Provides Updated New Paid Prescription Trends
5. Study Explores Utilization Trends for Prostate Cancer Treatments
6. Partnerships, Licensing, Investments and M&A Deals and Trends in Pharmaceuticals - Q2 2011
7. Medical Equipment Quarterly Deals Analysis: M&A and Investment Trends - Q2 2011
8. India Cardiac Catheters and Guidewires - Market Trends Till 2016
9. UK Cardiovascular Monitoring Systems - Market Trends Till 2016
10. US Ultrasound Systems - Market Trends Till 2016
11. US X-Ray Systems - Market Trends Till 2016
Post Your Comments:
(Date:11/27/2015)... DUBLIN , Nov. 27, 2015 Research ... of the "Global Intrauterine Devices Market 2015-2019" ... --> In this report, the author ... intrauterine devices market for 2015-2019. To calculate the market ... of following type of products: Hormonal IUDs and copper ...
(Date:11/26/2015)... UTRECHT , Países Bajos, November 26, 2015 /PRNewswire/ ... con la terapia fotodinámica de Bremachlorin para el cáncer ... combina la inmunoterapia con la terapia fotodinámica de Bremachlorin ... Un nuevo enfoque combina la inmunoterapia con la ...   Clinical Cancer Research . --> ...
(Date:11/26/2015)... November 26, 2015 ... nieuwe aanpak combineert immunotherapie met Bremachlorin-photodynamische therapie ... ) --> ... (Photo: ) ... Medisch Centrum (LUMC) blijkt ...
Breaking Medicine Technology:
(Date:11/30/2015)... ... November 30, 2015 , ... The successful filing of an Investigational ... it is so important to this key industry segment, Regis Technologies has decided to ... on December 4th at 11am EST. , Federal law does not allow new drugs ...
(Date:11/30/2015)... ... November 30, 2015 , ... ... of critical importance to the medical schools of the future. To reach an ... suite at the 2015 ChangeMedEd conference in Chicago, organized by the American Medical ...
(Date:11/30/2015)... ... November 30, 2015 , ... ... their strategic partnership at the Radiological Society of North America (RSNA) 2015 ... global providers of cutting-edge dictation and speech-enabled documentation software, announced their partnership ...
(Date:11/30/2015)... Wylie, TX (PRWEB) , ... November 30, 2015 , ... Bayco Products, Inc today announced ... only $11.95 each. Available in a choice of three different colors; red ( NSP-1632 ), ... can each run up to 18 hours in constant-on mode, or 27 hours in blinking ...
(Date:11/29/2015)... FL (PRWEB) , ... November 30, 2015 , ... The Cyber Monday deal is a ... It is the right time to get gifts for the skin care lover in your ... top filled with serums . This year, the 3 serums are staples: Collagen, Retinol and ...
Breaking Medicine News(10 mins):