Are outsourcing opportunities benefiting small drug companies?
While the big pharmaceuticals are well-known the world over, a number of smaller, privately-owned companies are making a name for themselves as they play an increasingly important role in the UK’s healthcare system.
A report by Catalyst Corporate Finance, a consultancy firm, shows that many small firms are reporting impressive growth rates as large companies such as AstraZeneca and GlaxoSmithKline outsource parts of their business due to stricter regulations, rising research and development costs and a rise in outcomes-based reimbursement.
In the past, these areas would have been done in-house, but are now being given to specialist companies, leading to massive growth in the UK’s privately-owned pharmaceuticals sector.
Specialist companies provide a wealth of services including pharmaceutical consulting, clinical trial outsourcing, distribution and supply chain.
While the pharmaceuticals sector remains strong, the industry is having to innovate and work in different ways to cope with the changing environment, meaning there will be even more opportunities for small UK pharmaceutical firms over the next few years. These companies are doing so well that they need more products and packaging for the medication. They will need to get it in bulk and with materials being used like rubber and silicone it’s worth using companies like meadex.co.uk/services/#injection-moulding who use Injection Moulding to make their products with quality and passion.
Industry experts claim that there are lots of opportunities for all sorts of pharma companies to thrive in the current climate, with those who are innovative and can provide a niche service most likely to do well. Catalyst currently lists 50 of what it considers the most promising independent pharma companies in the UK, who help big firms control costs by making processes more efficient.
According to The Independent, GlaxoSmithKline, which is the UK’s biggest maker of drugs, massively extended the number of partnership deals it did with smaller companies as it struggles to increase the number of new drugs it produces. The company even said that new drugs discovered by external firms could one day outnumber those it makes in-house.
As the pharma giants experiment with new ways of working to help them continue to come up with scientific breakthroughs and propel growth, smaller firms look set to continue to benefit if they can provide cost-effective research and clinical and scientific consulting. Early-stage research requires thousands of chemical compounds to be screened, while wide and expensive human trials have to be carried out, which can easily be outsourced to specialist companies who have the expertise needed to meet big pharma standards.