No Laboratory Of New Drug Research And Development Enterprise Mode

Economy globalization has become a trend as a result of the arrival of information explosion era and the advancement of science and technology. The biopharmaceutical industry has outsourced more and more research and development (R&D) activities overseas, which in turn has promoted the emerging and fast growing of outsource service industry around the world.The competitive of biopharmaceutical companies depends on their advanced knowledge and technology. Innovation is the core for their competitiveness, which could be enhanced by R&D. Therefore, the pharmaceutical companies have paid tremendous attention to new drug R&D. Due to its long term, high risk and high investment, most US pharmaceutical companies have been seeking to save cost and mitigate risk via partnerships with CRO (Contract Research Organization) companies. CROs have appeared to be a strategic part of drug discovery and development. However these years, pharmaceutical companies face continuing pressures from rising cost, more strict approval system and decreasing odds of successful drug development. Outsourcing R&D to CRO companies oversea has become a choice, especially for those mid-size and small biotech and biopharmaceutical firms. There has been a rapid growth in outsourcing market within developing countries, which has created great business opportunities for China.China has provided with the factors to launch outsourcing activities by rapidly growing economy. Factors that attract CRO business from multi-national companies include increasingly strong scientific research capability, improvement in intellectual property laws, increasingly large number of oversea returnees who have years of drug discovery and development experience and the low cost of labors. These advantages encourage much more R&D outsourcing in China.A new model of R&D firms that engage in the very sophisticated discovery and development of new drugs but do not have their own research laboratories has emerged benefited from such environment. This new type of firms utilizes external research to carry out their projects. The present thesis discussed the model feasibility, establishment and operation by taking example for Firm A. From the performance analysis, it concluded that reducing cost, saving time, making use of outsource come out as most advantage related to this model. By contrast, the barriers are risk of intellectual property rights, difficulty of cooperative management and strategic change of venture capital and so on. In addition, it also suggested some key factors for the success and the implications for effective project management. For example, this kind of firms can identify potential risks to lay a course before starting projects and accelerate intercommunion by appropriate coordination in order to enhance the trust between collaborators, and to protect internal information.