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Pharmaceutical companies have found success in the offshoring of manufacturing, IT, data management, and clinical-trial operations. Will discovery be next to be shipped overseas?
Drug discovery symbolizes the birth of a pharmaceutical product and is the first step in its development. Drug discovery also is the latest area to be a considered for cost-cutting offshore measures. Experts believe that this area of the drug-development process will remain primarily in the United States in the near term because of intellectual property concerns in developing countries, the pull of the strong academic community in United States, and cultural issues. But, as pressure on the bottom line grows, pharmaceutical companies have begun exploring the strategy of taking discovery offshore to take advantage of talent overseas, as well as the associated lower labor costs.
Recent drug-discovery collaborations with companies based in India by GlaxoSmithKline and Novartis are good examples of how companies are starting to look overseas for some discovery support.
Experts also have observed that U.S. pharmaceutical companies are starting to consider establishing their own discovery facilities and laboratories in offshore locations, which could possibly provide them with more intellectual property protection…

Managing Risk in Pharmaceutical Offshoring
Number of U.S.Jobs Moving Offshore by Job Category, 2003-2015
Brave New World

Thought Leaders
Charley Beever. Head, Worldwide Pharmaceutical Practice, Booz Allen Hamilton, McLean, Va.; Booz Allen Hamilton is a global strategy and technology consulting firm. For more information, visit
Craig Dees, Ph.D. CEO, Provectus Pharmaceuticals Inc., Knoxville, Tenn.; Provectus is a pharmaceutical company engaged in the design, development, and marketing of a diverse portfolio of pharmaceutical technologies for the treatment of liver, breast, and prostate cancer. For more information, visit
Bill Gargano. Senior Manager, RCM Technologies, Pennsauken, N.J.; RCM is an IT outsourcing and engineering company specializing in the pharmaceutical,diagnostics, and biotech industries. For more information, visit
Rick Koenig. R&D Communications, GlaxoSmithKline, Philadelphia; GlaxoSmithKline is one of the world’s leading research-based pharmaceutical and healthcare companies. For more information, visit
Mario L. Rocci Jr., Ph.D. President and CEO, Prevalere Life Sciences Inc., Whitesboro, N.Y.; Prevalere Life Sciences is a contract research organization providing consulting and GLP/cGMP compliant analytical testing services to the pharmaceutical and biotechnology industries. Dr. Rocci also is the 2005 Immediate Past President of the American Association of Pharmaceutical Scientists. For more information, visit
Adel Sakr, Ph.D. Professor and Director, Industrial Pharmacy Program, College of Pharmacy, University of Cincinnati, Cincinnati; The University of Cincinnati College ofPharmacy is one of the oldest in the United States and offers both professional practice and graduate degrees. For more information, visit
Ashish Singh. Global Healthcare Practice partner, Bain & Company Inc., New York; Bain is a global business consulting firm. For more information, visit
A. Srivathsan. Director, Healthcare Practice, Marlabs, Edison, N.J.; Marlabs is a global full-service provider of application development, managed, and consulting services with dedicated industry practices in the healthcare, pharmaceutical, and life-sciences industries. For more information, visit
Nicholas Stamos. VP, Products and Services, and Cofounder, Verdasys Inc., Waltham, Mass.; Verdasys is a provider of enterprise point-of-use data security designed to maintain the safety and confidentiality of business information users access or interact with continually. For more information, visit
John R. Vogel, Ph.D. Drug Development Consultant, John R. Vogel Associates Inc., Wailea, Hawaii; John R. Vogel Associates is a drug-development consultancy that works with pharmaceutical companies and pharmaceutical service providers to enhance results achieved through outsourcing. For more information, visit