Top strategic partnership news on Outsourcing-Pharma

By Nick Taylor

- Last updated on GMT

Related tags Covance Pharmaceutical industry

Outsourcing-Pharma presents a round up five of our top articles on strategic partnering, which continued apace in 2010, including deals by Covance, PPD and Parexel.

For big pharma strategic partnerships simplify outsourcing relationships and support closer cooperation with service providers. In return, service providers secure a steady revenue stream.

Sanofi looks to sell EU research sites to Covance

In July Outsourcing-Pharma confirmed Sanofi-aventis was planning to transfer ownership of sites and staff in France and the UK to Covance. At that stage it was unclear whether the deal would also include service provision; two months later the question was answered.

Covance & Sanofi ink 10-year, $2.2bn strategic R&D alliance

Full details of the deal between Covance and Sanofi were published in September. Transfer of the two sites to Covance, at a cost of $25m to the CRO, is just one element of an extensive 10-year $2.2bn strategic alliance that covers discovery, toxicology, chemistry and more.

Covance viewed the deal as further evidence big pharma wants to simplify outsourcing relationships by moving towards having fewer partnerships. In these larger partnerships the service provider becomes a more integral element of the pharma’s development team.

Covance’s R&D partnership with Lilly expands

In 2008 Covance and Eli Lilly established the template for strategic partnerships by forming a $1.6bn 10-year deal that included the transfer of a toxicology facility to the CRO; 18 months later the deal expanded.

Having performed 4,000 studies for Lilly in 2009, Covance agreed in March to take on more work. Covance is now responsible for testing all Lilly’s developmental biologics. The CRO also offered contracts to 20 Lilly employees as part of the expanded deal.

GSK selects Parexel and PPD as strategic CROs

GlaxoSmithKline (GSK) also moved to reduce the number of CROs it works with by inking deals with PPD and Parexel in September. The CROs are providing GSK with a range of clinical development and trial services.

Claire Brough, a GSK spokesperson, told Outsourcing-Pharma the deals form “part of a broader initiative in R&D at GSK to simplify clinical development and significantly increase our productivity​”.

Large pharma to boost CMOs’ biologics business; report

The trend of outsourcing high value work extends beyond contract research and into the manufacturing sector. In June Harry Glorikian, managing director of Scientia Advisors, told Outsourcing-Pharma contract manufacturers have bolstered biologics capabilities.

As in the CRO sector, the transfer of sites from biopharm to contract service providers is a possibility. Glorikian “is fairly likely​” to occur, particularly if a pharma buys a biotech and wants to offload any manufacturing capacity included in the deal.

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