Pharmaceutical companies spend more than US$200 billion on research every year producing between 20 and 25 new drugs. It’s an increasingly expensive exercise and one that is ultimately paid for by society. Industry watchers want drug-makers to cut research budgets, noting internal R&D groups have been notoriously unproductive and expensive to maintain. Bernard Munos, a 30-year executive with Eli Lilly, has spent the past decade studying pharmaceutical innovation and says the drug industry is hitting a crisis point with a lack of quality research focusing on too much incremental and not enough breakthrough innovation. Plainly said: drug companies are not making money fast enough with new products to cover the cost of researching. Outsourcing, claims Munos, could change that.
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