NEW YORK -
Outsourcing by big pharma and biotech companies helped fuel a jump in first-quarter profit for most clinical research organizations, and the trend is expected to continue as drug developers farm out more of their needs to cut costs.
Charles River Laboratories Inc., Covance Inc. and Pharmaceutical Product Development Inc. are among several such organizations boasting an uptick in business as companies such as Pfizer Inc. and Bristol-Myers Squibb Co. trim staff and facilities, opting to send early-stage laboratory work and more expensive late-stage development out of house.
"We haven't, to date, seen any major cutbacks in research area funding," said Terri Cooper, a life sciences consultant with Deloitte Consulting. "They (pharma companies) recognize that somehow they've got to fuel their research and development pipelines."
Cooper says drug developers are cutting clinical costs by contracting out for those services.
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