Do Strategic Partnerships Meet Outsourcers Expectations?

Source: ISR Reports

By Kate Hammeke, VP of Market Research, Industry Standard Research (ISR) @ISRreports

Kate 2021_450x300

In a recent study of outsourcing model usage, ISR asked companies that outsource commercial manufacturing to allocate the proportion of manufacturing that is conducted in-house, and to assign the proportion conducted tactically, through preferred providers, and via strategic partnerships. Among drug innovator companies that outsource commercial manufacturing (companies that conduct all manufacturing in-house were not included as participants in the survey), an average of 37% manufacture in-house. Interestingly, the proportion of commercial manufacturing outsourced is evenly split among the three outsourcing models studied in the research. One-fifth (20%) is sourced tactically, 21% is contracted via strategic partnerships, and 22% is allocated to preferred providers. Only slight changes in these rates are anticipated over the next three years, where the proportion allocated to preferred providers and strategic partnerships will increase to one-quarter of commercial manufacturing, while tactical outsourcing will remain steady, and a small decrease in in-house manufacturing is anticipated. This decrease in in-house manufacturing is likely tied to an increase in the number of commercial products without a corresponding increase in expanding in-house capacity.


Get unlimited access to:

Trend and Thought Leadership Articles
Case Studies & White Papers
Extensive Product Database
Members-Only Premium Content
Welcome Back! Please Log In to Continue. X

Enter your credentials below to log in. Not yet a member of Pharmaceutical Online? Subscribe today.

Subscribe to Pharmaceutical Online X

Please enter your email address and create a password to access the full content, Or log in to your account to continue.


Subscribe to Pharmaceutical Online