I just blogged Friday about the pharmaceutical industry'sincreasing willingness to outsource research and development. A story from in-Pharma Technologist.com provides further proof of the trend.
Eli Lilly, which the story says was "slower off the mark" than its competitors to embrace an outsourcing model, will begin outsourcing more of its business activities, most notably research and development. The company has already trimmed 5,000 positions from its internal work force over the past few years, according to the story, by outsourcing manufacturing, sales and IT functions.
Eli Lilly hopes to further cut costs and boost efficiency by outsourcing pre-clinical and clinical R&D. Up to half of these activities will be performed by third parties by 2010, according to the story. Like many of its rivals, Eli Lilly likely will consider sending this work offshore to Asia. Pfizer, for instance, is investing $300 million in South Korea over the next five years.