Careers in next generation contract partnering
pharmafile | June 22, 2011 | Feature | Business Services, Manufacturing and Production, Research and Development | contract manufacturing, contract research, cros
Over the past few years, a significant shift has occurred in the depth and type of relations that the pharma industry has with its third party contractors. Whereas previously, these relations would be mainly based around tactical fulfilment – high-level strategic partnerships are now being forged.
Companies that would previously have managed the entire development of a new drug in-house are now outsourcing key elements of their drug development process to third parties. This change in relations has not only created a whole host of new roles within outsourcing firms, but has also made them more attractive to executives looking to make the move from in-house to contract partner.
Herman Schwietert is general manager of Greater China for Invida, a leading commercialisation services company in Asia Pacific.
Herman previously worked for 17 years at Organon as a general manager, marketing manager and international product manager.
“Contract partners used to have significant challenges attracting the best talent or offering comparable packages to big pharma,” says Mr Schwietert. “But outsourcing companies have evolved over time to become specialists, improving their standards and systems to a level where they are often better than those operated by the pharma industry. Their increased ability to operate at a global level also offers more exciting opportunities for potential joiners.
“For many in-house experts, there are good opportunities in contract organisations. As big pharma increasingly retreats from specialist areas, the new breed of outsourcing firms have become logical places to develop and grow their career.”
John Barnes is a general manager at Catalent Pharma Solutions, a provider of advanced drug delivery technologies and solutions in Swindon, UK. He previously worked at GSK.
“In the past, contract organisations suffered from a perception of being less well financed, offering less support and having more supply complications.” However, increasing pressure on pharma to improve manufacturing efficiency, or find partners to solve product development challenges has boosted the perception and value of the contracting firms. “The level of trust in contract organisations is increasing – and the cost of not moving to outsourcing is also increasing as the challenges of managing high fixed costs in the supply chains start to hit home,” says Mr Barnes.
Ex-employees of ‘traditional’ pharma companies can bring valuable skills to contract research organisations.
A big advantage of coming from pharma is that you’re used to looking at the whole picture – this knowledge is needed in refining and improving systems and processes,” says Mr Schwietert. “Industry contacts and referrals are also key to contract organisations, and people from pharma tend to be more networked and have a better overall view of the industry.”
For Mr Barnes, the experience of drug development and lifecycle management that ex-pharma employees have is vital.
“Process knowledge is probably the most valuable area that I have brought over. For instance, how to construct processes that are more manageable and that people can work to. In smaller organisations, there is less room for mistakes, so it is important to get things right first time.”
Dr Amar Kureishi is head of Strategic Drug Development & chief medical officer for Asia Pacific at Quintiles. Before taking on his current role, he was vice president & head of Global Medical Affairs at Bayer Healthcare Pharmaceuticals. Moving to a contract partner organisation has proved to be a dynamic and exciting experience for him.
“The culture is faster paced and more entrepreneurial,” says Dr Kureishi. “People generally make decisions faster as the focus is on finding solutions for the customer, and implementing these solutions as efficiently as possible. In pharma, there tends to be much more discussion, which can slow down the progress of an idea.
“Stepping out into a service company has provided me with a view of how things are done across many companies. I suddenly have a much broader exposure and am learning things that I wasn’t previously aware of.”
At Catalent Pharma Solutions, Mr Barnes enjoys seeing the tangible results from his work. “Because manufacturing is at the heart of what we do, my role isn’t just another function of a major corporation, but is a value generating activity for the company. That’s a real business responsibility with real consequences. As a manufacturing professional by experience, this is a very inspiring position to be in.”
However, taking a position in a contract organisation is not without challenge and initially, people may find themselves well outside of their comfort zone.
“The speed of decision-making is at a different level,” says Mr Schwietert. “The sense of urgency in small or mid size companies is incredible – but this can bring the best out of people.
“There’s also a greater sense of accountability. Whereas decision-making is shared across a broad group of people within pharma, your decisions in a contract environment have more impact. This can be both an opportunity and a challenge.”
For Mr Barnes, coming to terms with new commercial realities is a big part of moving to a contract organisation. “A level of independence and commercial acumen is required to be able to make decisions which are sound for the business in a fast-paced environment.”
Aside from the dynamic environment, fresh challenges and greater freedom, switching to contract organisations is likely to be a wise strategic career move in the long term.
Mr Schwietert explains: “Working on both sides of contracting and partnering is going to become more common. You’ll be much better placed if you have worked in and understood both. Do it for your own development.”
Despite being a convert to the working culture at contract organisations, Dr Kureishi cautions those looking to make the move to consider whether the new role is right for them.
“I would advise potential candidates to look carefully at the role they will be moving to. In the service industry, there are many innovative activities going on such as consulting and strategic drug development. However, the core activity is still the delivery of contract research services.”
The flow of specialised R&D personnel and general managers from the pharma industry into contract organisations is a very real trend and looks set to continue and grow over the coming years.
Speaking about the future of partnerships between pharma and contract organisations, Mr Barnes says: “Relationships will become broader and cover more complex technology as the contract service sector gains pharma’s trust. By improving its understanding and breadth of capabilities, the outsourcing industry can satisfy its customers’ needs more effectively.
“The winners in this field will be those organisations capable of partnering through the use of specialist technology. This technology will provide the marketplace with innovative ways to bridge the gap between novel APIs discovered via the R&D pipelines of the pharma industry, and patient efficacy offered by technologies supplied by companies in the service sector that have demonstrated innovation in their manufacturing methods.”
Talking about the future of the pharmaceutical industry, Dr Kureishi concludes: “I think strategic partnerships will be very important, especially in the field of drug development. Companies that focus on their strengths while partnering in other areas are very likely to thrive in the changing and increasingly complex pharma landscape.”
Susan Macdonald is managing director of RSA Singapore, a leading global life sciences executive search and interim management firm. For more information visit: www.theRSAgroup.com
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