earful of the threat of falling revenues as ‘blockbuster’ drugs drop out of patent protection, and with generic producers snapping at its heels, Big Pharma has been turning to contract research and manufacturing organisations, CROs and CMOs, to reduce overheads and maintain profitability. These outsourcing companies have increasingly been located in geographic regions outside North America and Western Europe, but
there are signs that this trend is reversing. Michael Maciocio, director, global external supply, for Pfizer, also reported increasing consolidation, with western suppliers acquiring smaller developing companies in emerging markets. However, he noted that there are challenges concerning the integration of standards in these smaller nimble companies, while the move towards higher standards in Asia has resulted in a reduction in the earlier cost
advantages. Tom Sowin, associate director, global
external research, at Abbott, added that Big Pharma will use both European and Asian suppliers for its drug discovery efforts, but said that, while CROs in China are becoming very skilled, an improvement in medicinal chemistry is still needed. While Big Pharma has frequently used CMOs for particular stages in the synthesis of an active pharmaceutical ingredient