Key Reasons for Employing Pharmaceutical Contract Manufacturers
Pharmaceutical contract manufacturers provide an important service to companies engaged in the research and development of new drugs and medicines.
The principle behind research outsourcing comes in the money pharmaceutical firms can save. Each year, only a small number of drugs are approved by the FDA for public consumption, out of the thousands of prototype medications developed by pharmaceutical companies around the world. Drugs not approved do not incur any revenue, and can quickly become a financial liability for a pharmaceutical company.
Companies can spend as much as $1 billion on getting a drug FDA-approved, including pre-clinical development, safety trials and monitoring. These costs come in the form of labor, equipment, facilities maintenance and others. By outsourcing part of their development and manufacturing process, pharmaceutical companies can focus on other aspects of their research.
For example, a firm specializing in vaccines can focus on developing their inoculation formulas, while they can outsource their drug safety monitoring and testing processes. This saves a company the cost of maintaining its own testing facility and personnel.
Another important factor for using pharmaceutical contract manufacturers is the global nature of disease research. Some diseases, such as malaria and dengue, are endemic only in certain areas in the world. A firm aiming to develop treatments for these illnesses may need a dedicated team in such locations. The cost of hiring field personnel for research and data acquisition can be a huge investment, which makes hiring a third-party drug research and development firm a more viable option.
RESOURCE BOX:
UPM Pharmaceuticals is one of the leading independent pharmaceutical contract manufacturers focused on the development of drug and medicine products. As a third-party pharmaceutical research organization, they collaborate with a worldwide network of scientists to discover new drugs. For more information, call 410.843.3738, or visit UPM-Inc.com.
The principle behind research outsourcing comes in the money pharmaceutical firms can save. Each year, only a small number of drugs are approved by the FDA for public consumption, out of the thousands of prototype medications developed by pharmaceutical companies around the world. Drugs not approved do not incur any revenue, and can quickly become a financial liability for a pharmaceutical company.
Companies can spend as much as $1 billion on getting a drug FDA-approved, including pre-clinical development, safety trials and monitoring. These costs come in the form of labor, equipment, facilities maintenance and others. By outsourcing part of their development and manufacturing process, pharmaceutical companies can focus on other aspects of their research.
For example, a firm specializing in vaccines can focus on developing their inoculation formulas, while they can outsource their drug safety monitoring and testing processes. This saves a company the cost of maintaining its own testing facility and personnel.
Another important factor for using pharmaceutical contract manufacturers is the global nature of disease research. Some diseases, such as malaria and dengue, are endemic only in certain areas in the world. A firm aiming to develop treatments for these illnesses may need a dedicated team in such locations. The cost of hiring field personnel for research and data acquisition can be a huge investment, which makes hiring a third-party drug research and development firm a more viable option.
RESOURCE BOX:
UPM Pharmaceuticals is one of the leading independent pharmaceutical contract manufacturers focused on the development of drug and medicine products. As a third-party pharmaceutical research organization, they collaborate with a worldwide network of scientists to discover new drugs. For more information, call 410.843.3738, or visit UPM-Inc.com.
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