News & Analysis on Clinical Trial Services & Contract Research And Development
Outsourcing in the US
By Melissa Fassbender
- Last updated on
Price said the industry can “absolutely” expect outsourcing to continue increasing, even as capacity tightens.
However, Price said the company expects that a majority of the outsourcing projects will be conducted inside the US, for at least two reasons.
“Prices are rising in India and China, making them less competitive,” he said, “and when dealing with complex science, collaboration is important – and that’s much harder to achieve when sponsors and lab teams are separated by huge distances, time zones and language.”
Additionally, Price noted if material needs to be shipped to India or China, an import license must be obtained from India, “and that can take a month navigating the system,” he said, adding, “It’s also not easy to send material from India or China to the US.”
“Companies that want to get to a shorter-term exit point will definitely outsource because it's cheaper,” Price said.