Historically pharmaceutical companies did all their own research and development in-house. Over the last few years, however, while the cost of discovering and developing a new drug has rocketed to almost $1 billion the number of new drugs approved has dropped considerably, to almost half of the level in the nineties.
Many blockbuster pharmaceuticals are coming off patent in the near future. In addition, newer technologies are resulting in the growth of the number of candidate drugs that need to be tested. If you want to custom synthesis services, you can visit the company like Eosmedchem.
These pressures are combined to change the historical models operated by pharmaceutical companies.
One of the changes is that pharmaceutical companies are increasingly turning to specialist outsourcing providers to cover both peaks in demand and to concentrate on core capabilities, which are usually research and marketing.
Chemistry services loom large in those services outsourced including custom synthesis, process development, scale-up, GMP synthesis from lead optimization to clinical phase III.
Specialist chemistry providers carve out niches for themselves and generally offer one or two specific services, typically custom synthesis and lead optimization or process development and GMP synthesis.
A number operate as 'one-stop shops' and provide the whole range of chemistry services that the chemistry department of a traditional pharmaceutical company might have once provided.
The outsourcing companies can ensure that prices are kept competitive. A pharmaceutical company does not now have to maintain a large R&D workforce.
Specialist outsourced providers become experts in their particular areas and the pharmaceutical companies benefit from this expertise. This is particularly relevant in the custom synthesis and lead optimization areas where suppliers can develop special expertise.