In Vivo is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction
UsernamePublicRestriction

Outsourcing: Hoechst's New Approach to Cost Cutting

Executive Summary

Eager to join the pharmaceutical elite, Hoechst needs to cut costs without creating more labor unrest. As it merges with Rhône-Poulenc into Aventis, HMR is outsourcing all US development to the CRO, Quintiles, looking to cut costs by $100 million over five years and provide a benchmark for the rest of HMR's worldwide development program. Moreover, both Quintiles and HMR hope to use the collaboration, perhaps in tandem with outside investors, to fund additional development projects; Quintiles would be assured the development work, and receive some of the drug's upside; HMR would be able to delay its own buy-in decisions until the projects had generated more actionable data. But the deal raises conflict-of-interest questions: will Quintiles' other clients shy away from a company with extra incentives to develop particular drugs-either those in which it has an equity interest or those of a client with whom it has a special relationship?

You may also be interested in...



Reckitt Targets UK's Painful ‘Tweens’ With Double-Strength Nurofen

Reckitt Benckiser wants to give British parents more pain relief options for their teens and "tweens."

Novartis’s New Eye Treatment Beovu Gets CHMP Nod

Novartis has been tipped to regain dominance in AMD, but Bayer/Regeneron have also gained 12-week dosing approval.

Xellia and Kabi Broaden US Antibiotics Offering

Xellia has added a 500mg/100ml variant to its range of vancomycin ready-to-use bags in the US, while Kabi has introduced ertapenem 1g vials and struck a critical-care supply deal with Vizient.

Topics

Related Companies

UsernamePublicRestriction

Register

IV001129

Ask The Analyst

Ask the Analyst is free for subscribers.  Submit your question and one of our analysts will be in touch.

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel