Description
The number and scope of drug discovery outsourcing agreements has grown rapidly over the past five years, and the pace will accelerate over the next five years. Outsourcing is now an essential part of drug discovery. Major pharmas and biotechs are aggressively pursuing a range of outsourcing agreements. On the supplier side, smaller vendors rely on outsourcing revenues to pay their bills and boost their credibility.
Outsourcing in drug discovery is a popular topic for trade articles and seminars. These generally focus on who is doing what with whom for how much. This report will not cover this familiar territory. Instead it will provide a strategic view by showing what motivates clients and suppliers to do deals, what makes these deals successful or unsuccessful, what are the dimensions of this market, and what may be expected in the future.
The key issues addressed in this report include:
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1. What are the fundamental issues regarding outsourcing in drug discovery (ODD)?
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2. What are the key environmental factors that shape ODD?
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3. How large is the market for ODD and how fast is it growing?
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4. Which are the major groups of ODD services and how large are they?
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5. What do customers look for in a supplier? How do they evaluate them?
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6. What do suppliers do to attract clients? Which techniques work best?
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7. What types of ODD deals are being done and what are some examples?
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8. What makes a deal successful? What are the obstacles to avoid?
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9. Who are the leading ODD suppliers? What do they offer?
10. Which of them has been successful? Which ones show the greatest promise?
Table of Contents
Chapter One: Executive Summary
- Whats & Whys of Outsourcing
- Understanding Drug Discovery
- Report Objectives & Structure
- Summary of Results
Chapter Two: Environment
- Pharma Industry Problems & Expectations
- Suppliers’ Issues & Objectives
- Major CROs
- Biotechs’ Issues
- Outsourcing Strategies
Chapter Three: Markets for Outsourced Services
- Pharmaceutical Industry Outsourcing
- Outsourcing in the Drug Discovery Market
- Biology Services
- Types of Biology Services
- Leading Suppliers
- Market Size & Projected Growth
- Chemistry Services
- Types of Chemistry Services
- Leading Suppliers
- Market Size & Projected Growth
- Screening Services
- Leading Suppliers
- Market Size & Growth
- Lead Optimization Markets
- Leading Suppliers
- Market Size & Growth
Chapter Four: Outsourcing from the Customer Side
AstraZeneca Enabling Science & Technology
- Global Enabling Science & Technology
- Global Discovery Alliance
- Refocusing Efforts
Bristol-Myers Squibb
- How Does BMS Organize for Outsourcing?
- How Does BMS Approach Outsourcing?
- What Are the Stages of Outsourcing?
- Best Practices in Outsourcing
Glaxo R&D
- Identifying Building Blocks
- In-House vs. Outsource
- Selecting Products & Vendors
- Measuring Results
Johnson & Johnson Pharmaceuticals Technology Licensing
- J&J Outsourcing Organization
- Active Areas of Interest
- Types of Technology License Agreements
- How J&J Selects Partners
- Advice to Potential Partners
Eli Lilly External Development
- Value of Outsourcing to Lilly
- Approach to Outsourcing
- Measuring Performance: Role of Metrics
Merck Strategic Research Initiatives
- Identifying Opportunities
- Approach to Partnering
- Research Partnering Strategies
Millennium’s Technology Alliances
- Millennium’s Alliances
- Keys to Successful Alliances
- Alliance Management
- Management Techniques
Novartis Global Business Development
- Preparing for Partnering
- Picking the Partner
- Doing the Deal
- Making It Work
Pharmacia R&D Outsourcing
- Why Pharmacia Outsources
- Pharmacia’s Sourcing Department
- What Pharmacia Outsources
- Selecting the Vendor
- Enhancing the Sourcing-Supplier Interface
Pfizer Global R&D
- Reasons for Outsourcing
- What Gets Outsourced?
- Managing the Collaboration
- Pitfalls to Avoid
- Understanding Pfizer Values
Summary: What Customers Seek
- Why Pharmas Outsource
- Areas of Interest
- Types of Agreements
- How Partners are Selected
- Making the Deal Work
- Executing the Assignments
Chapter Five: Outsourcing from the Supplier Side
Affinium Pharmaceuticals
- Building a Company for Partnering
- What Affinium Offers
- Alliances
ArQule, Inc.
- Transforming ArQule
- What ArQule Offers
- Outsourcing Strategy
BioFocus plc
- What BioFocus Offered
- The Initial Deal
- Benefits of Outsourcing
Genomics Collaborative
- Global Repository
- Pharmacogenomics: Pharmacia Alliance
Syngene International Pvt. Ltd.
- Outsourcing in India
- Working with CROs in Developing Countries
Successful Suppliers’ Strategies
- Defining Who You Are
- What Services to Provide
- How to Attract Customers
- Making the Deal Work
Chapter Six: Deal-Making In Drug Discovery
- Market Drivers for Deal-Making
- Valuation of Deals
- Negotiating the Deal
- Effective Alliance Management
- Measuring the Effectiveness of a Deal
- Key Factors for Success
- Major Reasons for Failure
- Alliance Outcomes
- Examples of Successful Deals
- Product Supply Contract
- Fee-for-Service/ Full-Time Equivalent (FTE)
- Collaborative Research Agreement
- Non-exclusive Alliance
- Exclusive Strategic Alliance
Chapter Seven: Supplier Profiles
Absorption Systems
- Company History & Leadership
- Drug Discovery Services
- Outsourcing Relationships
Affinium
- Company History & Leadership
- Drug Discovery Services
- Outsourcing Relationships
Albany Molecular Research, Inc.
- Company History & Structure
- Financials
- Drug Discovery Services
- Outsourcing Relationships
Ambit Biosciences
- Company Background & Orientation.
- Drug Discovery Technologies
- Outsourcing Relationships
Argenta
- Company History and Connections
- Drug Discovery Services
- Outsourcing Relationships
ArQule
- Company History & Structure
- Financials
- Drug Discovery Services
- Outsourcing Relationships
Array Biopharma
- Company History & Objectives
- Financials
- Drug Discovery Services
- Outsourcing Relationships
Aurigene
- Company History & Management
- Drug Discovery Services
BioFocus plc
- Company History & Business Focus
- Financials
- Drug Discovery Services
- Outsourcing Collaborations
Cardinal Health Pharmaceutical Development (Magellan Laboratories)
- Company History & Structure
- Financials
- Drug Discovery Services
- Outsourcing Relationships
Cell & Molecular Technologies
- Company History & Structure
- Financials
- Drug Discovery Services
Cetek
- Company History & Focus
- Drug Discovery Services
- Outsourcing Relationships
ChemBridge & CRL
- Company Structure & Focus
- Drug Discovery Products & Services
- Outsourcing Relationships
Chemical Diversity
- Company History & Focus
- Drug Discovery Services
- Customers
ChemShop BV
- Company Focus & Capabilities
- Drug Discovery Services
ComGenex Inc.
- Company History & Focus
- Drug Discovery Services
- Outsourcing Research Partners
deCODE Genetics
- Company Focus & Objectives
- Financials
- Drug Discovery Services
- Outsourcing Research Partners
Discovery Partners International
- Company History & Acquisitions
- Financials
- Drug Discovery Services
- Outsourcing Partners
Evotec OAI
- Company History & Structure
- Financials
- Drug Discovery Services
- Outsourcing Partners
Genome Therapeutics
- Company History & Focus
- Financials
- Drug Discovery Services
- Outsourcing Research Partners
Genomics Collaborative
- Company Focus & Objectives
- Drug Discovery Services
- Outsourcing & Research Partners
ICOS Corporation
- Company Focus & Objectives
- Financials
- Research Partners
Lexicon Genetics, Inc.
- Company Focus
- Financials
- Drug Discovery Services
- Clients & Research Partners
MDS Pharma Services
- Company History & Structure
- Financials
- Drug Discovery Services
- Outsourcing Research Partners
Medarex, Inc.
- Company Focus & Objectives
- Financials
- Drug Discovery Services
- Outsourcing Research Partners
Millenium Pharmaceuticals
- Company Focus & Objectives
- Financials
- Drug Discovery Services
- Outsourcing Research Partners
MerLion Pharmaceuticals
- Company Background & Objectives
- Drug Discovery Services
- Outsourcing Research Parnters
PharmaCore
- Company Focus
- Drug Discovery Services
- Outsourcing Research Partners
Pharmacopeia
- Company Focus & Ownership
- Financials
- Drug Discovery Services
- Outsourcing Research Partners
Pharm-Eco
- Company History & Focus
- Financials
- Drug Discovery Services
PPD, Inc.
- Company Focus
- Financials
- Drug Discovery Services
- Outsourcing Research Partners
PsychoGenics
- Company Focus
- Drug Discovery Services
- Research Agreements
Quintiles
- Company History & Focus
- Financials
- Drug Discovery Services
- Outsourcing Research Partners
Sequitur
- Company History & Focus
- Drug Discovery Products & Services
- Outsourcing Research Partners
Structural Bioinformatics, Inc.
- Company History & Focus
- Drug Discovery Services
- Outsourcing Research Partners
Sunesis Pharmaceuticals
- Company Focus
- Drug Discovery Services
- Outsourcing Research Partners
TransForm Pharmaceuticals
- Company History & Focus:
- Drug Discovery Services:
- Outsourcing Research Partners
Tripos, Inc.
- Company History & Focus
- Financials
- Drug Discovery Services
- Outsourcing Research Partners
Vertex Pharmaceuticals Inc.
- Company History & Focus
- Financials
- Drug Discovery Services
- Development Partners
Zygogen, LLC
- Company Focus & Objectives
- Drug Discovery Service
- Outsourcing Research Partner
Appendix: Company Directory
List of Exhibits
Chapter One: Executive Summary
- Figure 1-1: Outsourcing in Drug Discovery Market Summary Total Revenues and Growth Rate 2003-2007
- Table 1-1: Market Share by Leading Suppliers 2002
Chapter Two: Environment
- Table 2-1: Top CROs at a Glance
Chapter Three: Markets
- Table 3-1: Outsourced and In-House Pharma R&D Expenditures, 1998-2007
- Figure 3-1: Growth in Outsourced Portion of R&D Expenditures, 1998-2007
- Table 3-2: Drug Discovery Outsourcing Market, 2002
- Table 3-3: Drug Discovery Outsourcing Market Growth, 2003-2007
- Table 3-4: Size and Growth of the Biology Services Outsourcing Market, 2003-2007
- Figure 3-2: Biology Services Outsourcing Market Estimated Market Share by Leading Competitor, 2003
- Table 3-5: Size and Growth of the Chemistry Services Outsourcing Market, 2003-2007
- Figure 3-3: Chemistry Services Outsourcing Market Estimated Market Share by Leading Competitor, 2003
- Table 3-6: Size and Growth of the Screening Services Outsourcing Market, 2003-2007
- Figure 3-4: Screening Services Outsourcing Market Estimated Market Share by Leading Competitor, 2003
- Table 3-7: Size and Growth of the Lead Optimization Services Outsourcing Market, 2003-2007
- Figure 3-4: Lead Optimization Services Outsourcing Market Estimated Market Share by Leading Competitor, 2003
Chapter Four: From The Customer Side
- Table 4-1: J&J’s Technology Licensing Agreements
- Table 4-2: Do’s & Don’ts for Suppliers: 20 Tips for Success
Chapter Five: From The Supplier Side
- Table 5-1: Types of Services Provided by Suppliers
Chapter Six: Deals
- Table 6-1: Why Deals Succeed, Why Deals Fail
Chapter Seven: Profiles
- Table 7-1: Outsourcing Companies’ Performance
- Figure 7-1: Contract Drug Discovery Competition by Locations
- Figure 7-2: Contract Drug Discovery Competition by Year Founded
- Figure 7-3: Contract Drug Discovery Competition by Revenue
- Figure 7-4: Contract Drug Discovery Competition by Number of Employees
- Figure 7-5: Contract Drug Discovery Competition by Number of Clients
- Figure 7-6: Contract Drug Discovery Competition by Services Offered
