Lundbeck cuts back on outsourcing in China with new Shanghai R&D centre

By Natalie Morrison

- Last updated on GMT

Related tags Outsourcing Contract research organization

Danish neurodrug developer H Lundbeck is cutting back its Chinese outsourcing after establishing an R&D centre in Shanghai.

The firm will now perform several of the tasks previously farmed-out to contract research organisations (CRO) in house, but says it will continue to outsource “certain research tasks” in China.

It insists that the new move will not affect its current partnerships in other areas of the world.

A spokesperson said: “The new research centre will primarily perform tasks which have currently been outsourced to China, and the opening of the centre will therefore not have a direct consequence for Lundbeck's other research centres.”

Now through its new facility, Lundbeck hopes to establish more research alliances in Asia.

"It is important to be present where the potential collaborative partners operate in order to effectively identify and pursue partnership opportunities,”​ said Peter Høngaard Andersen, head of external scientific relations and patents.

“We have previously formed a number of good and important alliances in Asia, but our new centre will allow us to build even more partnerships.”

When asked which CROs would be affected by the new strategy, and which capabilities would be brought in house, Lundbeck was unavailable for comment.

Supply chain

The Danish business’ new facility – which will initially be staffed by 30 people – has been established in conjunction with the Investment Fund for Developing Countries (IFU), who has been involved with both advisory services and financial backing.

The collaboration also comprises a small packaging plant for finished goods in China, which will be ready for commissioning in 2012.

Through its packaging capabilities, Lundbeck says it hopes to prove it has a firm grasp on its Chinese supply chain management.

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