Identifying Outsourcing Trends in Pharmaceutical and Biotechnology Contract Research

Business Wire, May 14, 2008

PALO ALTO, Calif. -- Frost & Sullivan launches new Voice of the Customer studies on outsourcing trends, perceptions, selection criteria and other important dynamics to contract research organizations (CROs). These studies include detailed interviews with more than 150 executives within the pharmaceutical and biotechnology industry who are involved in outsourcing to CROs. Additionally, Frost & Sullivan seeks to gauge interest for this research in both the US and EU Markets.

If you are interested in sponsoring, shaping or participating in the research for this study, Customer Research: Contract Research Organizations 2008, then send an e-mail to Johanna Haynes, Corporate Communications, at johanna.haynes@frost.com with the following information: your full name, company name, title, company telephone number, company e-mail address, city, state and country. Upon receipt, we will then forward this information to our research team who will contact you at the above information.

"Understanding how outsourcers make decisions and evaluate providers is vital to service companies," notes Frost & Sullivan Industry Manager Daniel Ruppar. "Analyzing feedback on these dynamics provides CROs a sound basis for formulating an effective strategy to compete in the marketplace."

Biotechnology R&D spending growth has been consistently exceeding pharmaceutical R&D spending growth and is likely to be a key driver for CROs. Biotechnology companies currently account for more than half of all molecules in development, but they lack equivalent development infrastructure compared to their pharmaceutical counterparts, and subsequently make this a key driver of research outsourcing to CROs. Additionally, cost pressures pose a constant challenge to pharmaceutical and biotechnology companies. Outsourcing to CROs enables the conversion of fixed costs related to building and maintaining facilities into variable costs.

These studies will survey CRO customers to better understand their preferences, in addition to current and future outsourcing patterns. Other key objectives include the following:

* Provide CROs a sound basis for formulating an effective strategy to compete in the market

* Understand pharmaceutical and biotech companies' perceptions, attitudes, CRO selection criteria, outsourcing priorities and trends when establishing a relationship with CROs, as well as CRO corporate brand profiling.

* Identify CRO company and service key attributes that clients perceive to be most important; including current and potential drivers of satisfaction or dissatisfaction

* Identify key areas of opportunities and threats and provide a framework for competing in the market

Six core therapeutic areas will be the primary focus (Oncology, Cardiovascular, Metabolic, CNS, Infectious Diseases, Allergy & Respiratory diseases).

"CROs that can better understand the service models and business attributes that appeal to pharmaceutical and biotechnology companies can develop and refine their operations to best serve customer demand," says Ruppar. "With effective information partners, companies can take important steps to ensure and accelerate their future growth."

Customer Research: Contract Research Organizations 2008 is part of ongoing research conducted within the Pharmaceutical and Biotechnology market, which also includes research in the following areas: Contract Research and Manufacturing, Specialty Pharmaceuticals, Biopharmaceuticals, Vaccines and Drug Delivery. Recent titles include Global Biopharmaceutical Contract Manufacturing Markets, Global CRO Spending Trends and U.S. Biotechnology: Therapeutic Monoclonal Antibodies Market. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Analyst Interviews are available to the press.

Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's Team Research, Growth Consulting and Growth Team Membership empower clients to create a growth focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents. For more information about Frost & Sullivan's Growth Partnerships, visit http://www.frost.com.