Role of Outsourcing in Drug Manufacture

Outsourcing was pioneered by the automotive industry. The predominant part of the production process, working with steel, originally was backward-integrated all the way from the final assanbly of the car to ferrous ore mining. In a first phase, the industry abandoned the ore-to-steel segment in the manufacturing chain, and later more ancillary 

Drug Discovery and Development, Volume 2 Drug Development, Iidited by Mukund S. Chorghade Copyright 2007 John Wiley Sons, Inc. 

II Assembly Design in-house, steel structure supplied 

Outsourcing has become an important business process for the pharmaceutical industry since the 1970s. The development of a new drug all the way from conception to commercialization is one of the most demanding processes in the entire industrial world. This is confirmed by the R D expenditure of the pharmaceutical companies, which is the highest of all industries. It amounted to 32 billion in absolute terms in 2002 (+50% vs. 1998 +100% vs. 1994) more than 7% of sales for all the companies. For big pharma alone 

Global companies with large in-house capabihties (R D, marketing, manufacturing) ethical drugs 

---