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Outsourcing in Biotechnology, your thoughts?

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Outsourcing in Biotechnology, your thoughts?

Postby Dave Jensen » Wed Nov 10, 2004 12:29 pm

Read this article, and see if you feel (as I do) that some of our major biotech clusters will soon start to see some job loss to outsourcing in the manufacturing category . . . How long will it be before this happens to R&D?

Invitrogen Outsourcing

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Outsourcing in Biotechnology, your thoughts?

Postby A. Sam » Wed Nov 10, 2004 1:55 pm

I'm sure Dave cringes when he sees me post on this subject as I have in this forum before. Regarding this article, I work right next door to Invitrogen and the research folks over there are raining resumes on my head. It makes sound business sense; the majority of the folks in R and D in the US are from India and Asia anyway, those nations are more than capable of doing the job. In the US the larger biotech companies are going to continue to outsource their research and that's what's going to grab the news headlines. Smaller start-ups will still rely on local talent and I disagree with the idea the venture capital firms are going to require some local professor trying to raise seed money that he have a plan to develop his technology in India. The benefits of outsourcing are lost on a smaller scale operation and it's the smaller firms that employ the bulk of the people. Those people are going to be local. Biotech is a viable and permanent industry in the US, but what we need to move away from is this hype that we need to ramp up our training in the biosciences to meet the demand of this explosive sector. It's already a little over-staffed. Sorry to say it but biotech will not be the savior of those who are hurt by the loss of computer and manufacturing jobs in the US.
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Outsourcing in Biotechnology, your thoughts?

Postby Kim » Wed Nov 10, 2004 5:16 pm

Yes, many scientists working in biotech in the US are from China or India. However, they are always almost US educated. I have never met any Asian scientist in the US who has never done PhD or postdoc here in the US. This means that it is not common to find the same quality of talents back in their homes in China or India.

Also, my impression about Invitrogen is that they are a reagent company. They are not exactly a player in drug/pharmaceutical field.

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Outsourcing in Biotechnology, your thoughts?

Postby A. Sam » Mon Nov 15, 2004 12:52 pm

Here is a link to an article that came out last week about San Diego area biotech's early stage companies. The conclusion of it is that as investors become savvy to how long the time to market is with new technology, they become less likely to invest, forcing research-heavy companies to do more with less. We all know what that leads to.

http://www.signonsandiego.com/news/business/20041113-9999-1b13biotech.html
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Outsourcing in Biotechnology, your thoughts?

Postby Mark » Tue Nov 16, 2004 11:35 pm

I'm glad Dave raise the outsourcing issue, I have been meaning to post one in this forum. I think outsourcing in biotech or pharma is just a matter of time and the industry as a whole is not different than IT companies. A company needs only one or two managers or directors to run a department from the US while all the "lab rats" duties can be outsourced to China or India at a fraction of the cost here. Clinical trials for example, are run in India and Thailand where regulation laws are more flexible, easier and cheaper to recruit participants than here.

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