In today’s competitive pharmaceutical landscape, outsourcing has become essential to the development and commercialisation of drugs. This is especially true for emerging pharma companies, whose needs differ significantly from the more established, resource-rich big pharma firms. However, many contract research organisations (CROs) are still structured to cater primarily to big pharma, often overlooking the distinct needs of start-ups and smaller players.

Emerging pharma companies face unique challenges in their path to market. While scientific capabilities and state-of-the-art facilities are important, polling during a recent webinar revealed that other, more human factors – such as clear communication and transparency – play a much more critical role in successful outsourcing relationships over time.1 Emerging pharma companies, unlike their larger counterparts, are looking for partnerships grounded in trust and collaboration. This deeper level of connection fosters research-minded problem-solving and allows for a more efficient and successful route to market. 

The Growing Divergence Between Emerging and Big Pharma 

Emerging pharmaceutical companies are increasingly challenging the dominance of big pharma, particularly in innovative fields like gene therapy. As a result, nearly 54% of potential blockbuster drugs are now expected to come from smaller and emerging pharma companies.2 Despite this rapid growth, emerging companies continue to face challenges such as funding and access to trained personnel. 
Strategic Decision-Making:
In-House Capabilities vs. Outsourcing
A critical decision for emerging pharma companies is whether to invest in building in-house capabilities or to rely on outsourcing. Both options have their advantages, but for many small and mid-sized companies, outsourcing offers a more strategic approach, particularly when working with bioanalytical testing or other specialised services. Building in-house capabilities provides direct control over processes and decision-making. However, the costs associated with building and maintaining these capabilities, such as equipment, personnel, and compliance, can be prohibitive. In addition, the need for continuous training and upkeep can stretch the resources of smaller companies.