NEW YORK, Oct. 26, 2011 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:
Key Trends in Offshoring Pharmaceutical R&D: Company strategies, emerging markets and impact on ROIs
Offshoring and outsourcing have become an increasingly critical contributor to pharma and biotech R&D strategies in recent years. They enable companies to focus on core competencies such as drug discovery or technology development whilst contracting out non-core processes to experts, often at lower costs. As offshore investments begin to mature and provide returns on investment, the opportunity to migrate individual components or whole segments of R&D portfolios will continue to rise.
'Key Trends in Offshoring Pharmaceutical R&D' is a report published by Business Insights that evaluates the offshore R&D strategies that can reduce development times and improve productivity, with analysis of a variety of strategic partnerships, academic collaborations, and outsourcing opportunities. This report identifies emerging areas of technological and scientific significance across the globe and examines the offshore strategies and investments of the top 20 pharma and biotech companies across Asia, Australia, Central and Eastern Europe, Latin America and the Far East. This report also provides a financial and managerial valuation of leading companies based on their P/E ratio, return on assets (ROA) and return on investment (ROI) and measures company performance against the healthcare industry, pharmaceutical and biotechnology sectors and leading shares of the S&P500.
-Companies that have allocated over 60% of their R&D expenditure offshore have displayed greater shareholder return, operating margins, market capital growth and return on assets.
-The US currently attracts 53% of total industry R&D spend, however it is forecast that 20% of this expenditure will migrate to Asia Pacific by 2010.
Australia, China and Singapore are emerging as key areas for scientific and technological investment.
-Leading pharma and biotech companies have undergone major R&D restructuring over the last five years and now adopt a focused, streamlined global approach which is increasingly reliant on offshore strategic partnerships, academic collaboration and outsourcing to establish networks of scientific expertise.
-Scientific and technological excellence within emerging economies is a key incentive for offshore investment, enabling companies to enhance innovation and productivity within their R&D programs.
-Managerial expertise is a critical factor driving the success of offshore investments, helping leading pharma and healthcare companies to outperform their peers and the S&P 500 index in 2008.
Use this report to...
• Assess the offshore R&D strategies of the top 20 pharma and biotech companies with this report's analysis of offshore investment and deal trends over the last five years.
• Discover which geographic regions have the greatest potential for offshore R&D
investment by identifying key areas of technological, scientific and academic expertise across Asia Pacific, Australia, Eastern Europe, Latin America, the Middle East and South Africa.
• Measure how the offshore strategies of the top 20 pharma and biotech companies have influenced their R&D productivity and efficiency with this report's financial and managerial performance review, comparative analysis of healthcare/pharma/biotech sectors and S&P500 index assessment.
• Identify the key drivers and opportunities for offshore investment with this report's analysis of major offshoring trends and R&D developments.
Explore issues including...
Shifting focus of R&D strategies. The industry has become more globalized in its R&D approach as part of efforts to improve productivity and efficiency. Networks of offshore partnerships and academic collaborations are now enabling companies to harness external expertise on a project by project basis.
Offshore investment in emerging economies. Companies are increasingly turning to emerging countries to counter the slowing growth of US and European markets. Investing in offshore R&D facilities provides companies with local expertise and a greater understanding of local economies.
Offshore opportunities in tertiary economies. The success of commercial opportunities in emerging markets has expanded the regional scope of investment, with Australia, Israel and Singapore all seen to provide labour arbitrage and access to specialists.
Focused managerial directives are critical. Successful R&D performance is underpinned by a streamlined R&D strategy which is well managed by a team of scientists, technologists and non-scientists which can guide global networks ensuring early go/no go decision making which builds on the core competencies of both internal and external researchers.
• Which countries are attracting offshore investment?
• Which areas of research and technology are attracting offshore investment?
• How are the leading pharma and biotech companies changing their R&D programs?
• Which major companies and academic institutions have attracted offshore investment?
• What factors are driving offshore investment?
• What is the financial performance of the leading pharma and biotech companies based on P/E ratio compared to their peers and the S&P500?
• Which companies have delivered the best return on assets and return on investment during the last five years?
• How will offshore investment influence R&D productivity in the future?
Table of Contents
Key trends in offshoring pharmaceutical R&D:
Company strategies, emerging markets and impact on ROI
Executive summary 10
Offshoring: what, where & why? 10
Company analysis 11
Market analysis 12
Chapter 1 Trends in offshoring R&D 16
The evolution of offshoring 17
Trends in offshore locations 19
The decision to offshore 21
Offshoring vs inshoring 23
Emerging R&D trends 25
Chapter 2 Leading pharma and biotech offshore R&D strategies 30
Leading pharma & biotech company revenues 32
Leading R&D portfolios 34
Global R&D footprint 36
Returns on investment in the emerging economies 38
The impact of economic crisis on pharma's cash position 40
Johnson & Johnson 42
Emerging markets 43
Pfizer Inc 45
R&D strategy 46
Roche Holdings Ltd 49
R&D centers 50
R&D strategy 50
Offshore deals 51
Offshore strategy 52
Offshore R&D facilities 53
Novartis AG 54
R&D strategy 54
Offshore activities 55
Offshore acquisitions 58
GlaxoSmithKline plc 59
R&D strategy 60
Offshore R&D facilities & deals 61
AstraZeneca Plc 62
R&D facilities 62
Offshore deals 64
R&D strategy 64
Merck & Co Inc 66
New commercialization model 66
Offshore R&D strategy & deals 67
Eli Lilly & Co. 68
R&D strategy 69
R&D strategy 73
Clinical research partnerships 74
Bristol-Myers Squibb Company 75
BioPharma model 76
Strategic acquisitions 77
Amgen Inc 78
JVs and partnerships 79
R&D investment 80
Deals & acquisitions 80
Abbott Labs 81
R&D investment 83
Novo Nordisk A/S 85
Venture capital 87
Bayer Schering Pharma AG 87
Biogen Idec 89
R&D evaluation 89
Partnerships and strategic alliances 90
Baxter International 92
Chapter 3 Offshoring hotspots and emerging markets players 98
Return on offshore R&D investment 102
Regional offshore investment deals 103
Eastern Europe 112
Latin America 113
Middle East 116
South Africa 118
Chapter 4 ROI from offshoring R&D 122
Key areas for return on investment 123
R&D valuation 128
Financial performance 130
Managerial performance 132
List of Figures
Figure 1.1: Areas for R&D offshoring 18
Figure 1.2: Primary, secondary & tertiary investment 20
Figure 1.3: Key drivers for offshore investment 22
Figure 1.4: Balancing local and offshore investments 24
Figure 1.5: Trends in R&D 25
Figure 2.6: Pharma/biotech R&D intensity (%), 2007 33
Figure 2.7: Leading pharma mid-to-late-stage product pipelines (no. of late stage pipeline products), 2007 34
Figure 2.8: Leading pharma replacement power, 2007 35
Figure 2.9: Healthcare global R&D footprint 36
Figure 2.10: Accelerated growth in the Emerging Markets, 2006 38
Figure 2.11: Geographic diversification of leading pharma sales, July 2007-Jun 2008 39
Figure 2.12: J&J pharma sales (% share by product), 2007 42
Figure 2.13: J&J deals by type (no. deals), 2007 44
Figure 2.14: Origin of material of drugs by Roche, Genentech & Chugai, 2007 51
Figure 2.15: Novartis Pharma sales, 2007 54
Figure 2.16: Novartis deals, 2007 57
Figure 2.17: Merck's commercialization model, Dec 2007 67
Figure 2.18: Eli Lilly deals by type (no. deals), 2007 71
Figure 2.19: BMS biopharma model 2008 76
Figure 2.20: Schering-Plough deals by type (no. deals), 2007 81
Figure 2.21: Novo Nordisk's R&D strategy, 2008 85
Figure 2.22: Biogen's shareholder value creation plan 90
Figure 2.23: Baxter's global sales by region, 2007 92
Figure 3.24: Global R&D performance payoff for leading R&D spenders, 2005-2007 103
Figure 3.25: Location of offshore contract R&D (number of deals), 2004-2008 104
Figure 3.26: China offshore activity (% deals), 2004-2008 105
Figure 3.27: India offshore activity (% deals), 2004-2008 106
Figure 3.28: Japan offshore R&D activity (% deals), 2004-2008 107
Figure 3.29: Singapore offshore activity (% deals), 2004-2008 109
Figure 3.30: Australian offshore activity (% deals), 2004-2008 111
Figure 3.31: Eastern Europe offshore activity (% deals),2004-2008 112
Figure 3.32: Brazil offshore activity (% deals), 2004-2008 115
Figure 3.33: Israel offshore activity (% deals), 2004-2008 117
Figure 3.34: South Africa offshore activity (% deals), 2004-2008 118
Figure 4.35: Pharmaceutical R&D expenditure, average R&D expenditure per NAS launch, average
ROI per NAS (1988-2000) 124
Figure 4.36: New strategic and decision making models to target productivity issues 125
Figure 4.37: US pharmaceutical P/E ratios 130
Figure 4.38: US biotechnology P/E ratios 131
Figure 4.39: Leading companies over-performed ROA showed positive 5 year growth 132
Figure 4.40: Leading companies over-performed ROA showed negative 5 year growth 133
Figure 4.41: Leading companies over-performed ROI showed positive 5 year growth 134
Figure 4.42: Leading companies over-performed ROI showed negative 5 year growth 135
List of Tables
Table 1.1: Global technology research parks in secondary & tertiary countries 27
Table 2.2: Top 20 pharma/biotech revenues & R&D investment ($m), 2007 32
Table 2.3: J&J emerging economy sales growth (%), Q308 43
Table 2.4: J&Js recent R&D activities (ex US and top 5 European countries) 45
Table 2.5: Pfizer's recent R&D activities (outside the leading pharma countries) 48
Table 2.6: Roche's recent R&D activities (outside the leading pharma countries) 52
Table 2.7: Sanofi Aventis recent R&D activities (outside the leading pharma countries) 53
Table 2.8: Novartis AG recent R&D activities (outside the leading pharma countries) 58
Table 2.9: GlaxoSmithKline recent R&D activities (outside the leading pharma countries) 59
Table 2.10: AstraZeneca recent R&D activities (outside the leading pharma countries) 63
Table 2.11: Merck & Co recent R&D activities (outside the leading pharma countries) 68
Table 2.12: Eli Lilly recent R&D activities (outside the leading pharma countries) 72
Table 2.13: Wyeth's recent R&D activities (outside the leading pharma countries) 74
Table 2.14: Amgen recent R&D activities (outside the leading pharma countries) 79
Table 2.15: Abbott's recent R&D activities (outside the leading pharma countries) 82
Table 2.16: Genentech recent R&D activities (outside the leading pharma countries) 84
Table 2.17: Novo Nordisk's recent R&D activities (outside the leading pharma countries) 86
Table 2.18: Bayer Schering's recent R&D activities (outside the leading pharma countries) 88
Table 2.19: Biogen Idec recent R&D activities (outside the leading pharma countries) 91
Table 2.20: Baxter's worldwide facilities, 2008 93
Table 3.21: Top Ten R&D generators, users and importers (US$bn), 2007 100
Table 3.22: Latin American offshore agreements 114
Table 4.23: R&D productivity high and low benchmarks 126
Table 4.24: Valuation ratios by company 129
Table 4.25: Industry investment summary 137
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