Outsourced Drug Discovery Model Offers Several Advantages to Pharmaceutical Companies All Over the World Including Being Cost-Effective

 

Pharmaceutical scientists estimate that more than 500 potential drug targets are identified in the world today. Advances in genomics and proteomics promise a quantum leap in the number of usable drug targets. However, most pharmaceutical companies struggle to validate these targets and optimize their leads. With the help of outsourcing companies, pharma companies can focus on their core competencies and exploit the expertise of specialized contract research organizations.

The Global Outsourced Drug Discovery Market was valued at US$ 20.7 billion in 2017, and is expected to witness a CAGR of 12.1% during the forecast period (2019 – 2026).

This new model has several advantages. For one, it is more cost-effective. Companies with large budgets can hire top-tier drug discovery firms that specialize in specific areas. These firms are often able to leverage their extensive expertise to challenge larger pharmaceutical conglomerates. Further, contract sales organizations can help start-ups reach the market without the hefty overhead of large pharmaceutical companies. The upside is that one can leverage the intellectual capital of a small group of people with significant experience and expertise.

Outsourced drug discovery allows pharmaceutical companies to focus on core competencies while minimizing overhead and risk. Pharma companies in Shanghai are experimenting with new outsourcing and risk-sharing models. Medicilon/MPI Preclinical Research in Shanghai, for example, is a joint venture that offers a more integrated approach to drug discovery. This could help companies protect blockbuster drugs from the patent cliff.

In-house experts focus on core competencies and other key areas of expertise, and outsourced companies utilize expert contract research organizations to help them identify and prioritize drug targets. Outsourced drug discovery companies make use of artificial intelligence (AI) and genomics software to design efficient computer-aided drug models. Pharmaceutical research can be more cost-effective when it utilizes the best of existing research. Using these approaches, companies can increase the efficacy and safety of their products, reduce their risk and maximize profits.

A culture of innovation is taking root across Asia. As the region develops its infrastructure for world-class R&D, the level of technical and leadership talent increases. Moreover, regulatory issues are becoming more transparent and uniform across countries. As a result, the balance of pharmaceutical investment is shifting from developed markets to developing regions. This will result in high-end drug discovery in Asia. In January 2022, Shanghai Fosun Pharmaceutical (Fosun Pharma) and Insilico Medicine entered into a collaboration agreement for advancing the drug discovery and development targeting various targets with the use of AI technology.