Business


Evolve or die Ultimately, the increased use of offshoring is likely to result in job losses within the UK pharmaceuti- cal industry. As global leaders in life sciences Executive Search and Interim Management, RSA has begun to see a movement of staff displaced from the pharmaceutical industry to the CRO sec- tor – and this is likely to continue.


Several R&D sites across Europe have closed – and more are set to close in the coming months. On a positive note, some of these sites have been sold to CROs in their entirety, with many of the staff being offered jobs as part of the deal. For example, the GSK site in Verona was sold to the CRO firm Aptuit. Similarly, Merck’s research site in Rome has also become a CRO. Indeed, many pharmaceutical companies are promising two to three years of busi- ness to the purchasing CRO as part of the sale. This generates stability for the first few years until addi- tional clients and contracts can be secured. The net outcome is that the CROs are getting greater access to highly skilled staff – something that has been a criticism of CROs in the past. However, while the roles within CROs and in- house R&D groups may be similar, salaries are often lower. More forward-thinking staff may move to organisations which develop the tech- nologies that are used by CROs to facilitate the R&D processes.


Not all staff will move to CROs. Others will adopt a more entrepreneurial approach, joining forces with like-minded colleagues to acquire and develop IP that they have worked on prior to a site closure. While there are plenty of vacant research laboratories and redundant equipment, the real challenge for these individuals will be securing funding within a still-cautious environment in which venture capitalists and business angels are reluctant to invest in life science organisations. Nor will all sites become CROs. For example, the former Roche site in Welwyn Garden City, UK is now a thriving Biopark which will nurture fledg- ling research companies with the hope of creating further job opportunities.


For the staff that remain within pharmaceuti- cals, demonstrating their value and showing that they have the skills and competencies above and beyond those that exist in CROs is crucial – or their activities will be outsourced and roles eventu- ally made redundant. To survive, they must remain at the forefront of their science.


Despite these changes, increases in a collabora- tive approach to R&D have the potential to create more opportunities, should smaller, more innova- tive companies find their niche in the industry.


Drug Discovery World Winter 2010/11


Dr Kay Wardle is Managing Director of RSA Executive Search and Pre-Clinical R&D Practice Leader.


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The skill sets that in-house staff will need is also likely to change to meet the needs of this newer, more collaborative approach. The ability to manage external partnerships, often from a distance, will become critical. This will require excellent communication and time management skills, plus the ability to operate across cultural and language barriers.


Future choice


Outsourcing routine tasks will enable staff with- in pharmaceutical companies to concentrate on a more focused, expertise-driven approach to drug discovery. For the smaller, more innovative biotech and research companies, a move towards open innova- tion in the sector could herald new business oppor- tunities and subsequent employment opportunities. For big pharma, a collaborative approach to R&D has the potential to break the deadlock we are see- ing in R&D innovation, and generate the block- buster brands of the future.


* The UK Life Science Leaders’ Survey 2010 was conducted among 390 key leaders working in the global life sciences industry. Data was collected in July 2010.


DDW


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