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R&D Outsourcing


Exyte and Univercells Technologies Combine Аorces for Rapid Deployment of Vaccine Production Plants in the Wake of the COVID-19 Pandemic

   by White Matter Communications    148
  • Exyte offers the new ExyCellR modular technology for fast-track construction of biologicals production facilities compliant with the current good manufacturing practice (cGMP).
  • Univercells Technologies delivers the integrated NevoLine™ biomanufacturing platform, including scale-X™ bioreactors, for low footprint and economic large-scale production of viral products.
  • The combined offer enables users to rapidly deploy prefabricated GMP vaccine manufacturing facilities in response to new disease outbreaks.

19 Marketplaces for the Life Sciences Industry

   by Andrii Buvailo    23152
19 Marketplaces for the Life Sciences Industry

(Last updated: 12.05.2020)

Online marketplaces are websites with a “many-to-many” business logic. They can host multiple suppliers trading with multiple buyers via different e-commerce tools available as a part of a website functionality.

Why are online marketplaces great?

Online marketplaces can provide a substantial added value to its users. For example, buyers can quickly compare and select better offerings without the need to research multiple websites and surf online for price comparisons or product specifications. Additionally, marketplaces bring more transparency, trust, and standardization to the whole process of sourcing.

The Evolving Pharma R&D Outsourcing Industry: A Bird’s-eye View

   by Andrii Buvailo    2856
The Evolving Pharma R&D Outsourcing Industry: A Bird’s-eye View

Pharmaceutical companies are increasingly outsourcing their R&D activities, including early-stage research programs, to third party organizations -- academic institutions, biotech startups, and private contract research organizations (CROs) -- as a means to stay competitive, flexible, and profitable against all odds.   

Economically, there are factors such as increasing downward pressure on drug pricing by governments, an impending “patent cliff” threatening $198 billion worth of sales during 2019-2024), and downturns in income due to the increasing competition from generics and biosimilars. 

From the innovation's point of view, there is a boom in life sciences, stimulating the emergence of novel biological targets, therapeutic modalities, and even whole new areas of drug discovery -- adding opportunities, but also complexity and uncertainty to research programs. In fact, according to Deloitte’s report, return on late-stage pipelines dropped for the top 12 pharma companies from 10.1% in 2010 down to 3.7% in 2016.

Technologically, there is an unfolding “digital revolution”, bringing even further complexity and investment cost to the table -- in a form of artificial intelligence (AI), data mining and big data technologies, data-driven diagnostics, and digital health. 

Finally, the rise of the personalized medicine paradigm forces companies to rethink their research pipelines and “one-size-fits-all” product development programs, as well as reconsider their market strategies. 

Pharma R&D Outsourcing Is On The Rise

   by Andrii Buvailo    45726
Pharma R&D Outsourcing Is On The Rise

Pharmaceutical companies are increasingly outsourcing research activities to academic and private contract research organizations (CROs) as a strategy to stay competitive and flexible in a world of exponentially growing knowledge, increasingly sophisticated technologies and an unstable economic environment.  

The R&D tasks that firms choose to outsource include a wide spectrum of activities from basic research to late-stage development: genetic engineering, target validation, assay development, hit exploration and lead optimization (hit candidates-as-a-service), safety and efficacy tests in animal models, and clinical trials involving humans.

According to a report by Clearwater International (autumn 2019), the global CRO market will potentially rise to a $45 billion industry by 2022, as compared to an estimated $30 billion valuation (by Objective Capital Partners), exhibiting the current rate of market growth of around 10% CAGR with projected acceleration up to 12%. This is in line with Vantage’s alliance benchmarking study, revealing that over 80% of bio-pharma respondents reported increased alliance activity compared to previous periods. Getting ideas and expertise from external sources is a well-established practice in the pharmaceutical industry with about one-third of all drugs in the pipelines of the top ten pharmaceutical companies initially developed elsewhere, according to a 2014 WSJ article by Jonathan D. Rockoff.  

The Evolution Of Pharmaceutical R&D Model

   by Andrii Buvailo    3206
The Evolution Of Pharmaceutical R&D Model

There is a plethora of analytics reports, including ones by Deloitte, DKV Global, and Ernst and Young, all pointing out to a declining business performance of the pharmaceutical industry. They all convey a similar bottomline message: the decline is not due to a lack of innovation (the innovations are growing). And not because sales are falling or markets are shrinking (revenues are growing in general, and the markets are expanding with the expanding and ageing population). The key reason of the declining financial performance is the fact that research and development (R&D) costs are growing substantially faster over an average investment period, than the actual revenues over the same period. This kills operational profits, leading to a decline in the overall business gain. A direct consequence of that -- an increasingly stagnating industry, cutting sometimes promising R&D programs, jobs etc.  

There are two more relevant questions here: 

1) why R&D costs are growing faster than revenues, considering that technological progress is seemingly providing more and more optimal and powerful technologies to pharma companies at a constantly decreasing specific price (e.g. costs of computation, sequencing, screening and many other things are falling), and 

2) what to do about it to reverse the decline in pharma industry performance?