To increase sluggish returns on investment, pharmaceutical and biotechnology firms are relying more on CROs, according to a new report from the Economist Intelligence Unit (EIU). In the last two years, pharmaceutical and biotech firms have established 22 major partnerships with CROs, which now account for 40% of discovery and development (D&D). In September 2011, the EIU surveyed 251 life science senior executives about such partnerships. Nearly half of respondents have increased spending in the last three years on technology to “better manage data and information” (48%) and “improve analytical capabilities” (44%). Increasing investment in these areas is a trend likely to continue, as 55% and 53% of respondents said their firms will spend more on these two respective areas over the next three years. The highest percentages of respondents plan to expand “service provision” in the next three years on screening (58%), D&D overall (50%) and Phase III testing (49%). Expansion of CRO services in the next three years is expected by 71% of respondents.

Source: EIU