AMRI ($AMRI) is taking a new approach to outsourcing. Representatives from the CDMO were on hand at BIO 2012 this week in Boston to tout "SmartSourcing," which AMRI says will provide clients with insourcing and outsourcing.
As CROs and their strategic relationships evolve, so have the demands pharma companies place on their CRO providers. That means they're looking for stronger, more communicative relationships with fewer contractors, as research shows, says AMRI Vice President of Business Development Louis Garguilo. With SmartSourcing, AMRI can use services from its global facilities, insource their own experts and communicate better with clients.
"We think the industry is going toward bigger outcomes, and we think we've been doing that [already]," Garguilo said.
AMRI's 6-year partnership with Eli Lilly ($LLY) helped set the stage for what has become SmartSourcing. When Lilly made cutbacks with R&D, the drug giant was left with the facilities for the work, but no manpower. With Lilly bringing the lab space, AMRI stepped up and offered the minds: 40 contract researchers to be exact, transferring the contracted work from China to Indianapolis. And by having both teams stateside, scientists were able to communicate better and faster.
"We're able to fit in," said Bruce Sargent, AMRI's senior vice president of drug discovery. "We can meet in ways to adapt to the work."
AMRI hopes that SmartSourcing will boost demand for its biology services, which have already shown its promise. The company claims that an analysis by the director of one "U.S. emerging pharma company" found its services required less cycle time, fewer bio FTEs and resulted in a total cost that was between 50% and 75% less than other CROs.
While at BIO touting SmartSourcing, AMRI representatives also delved into the company's decision to close its Hungarian operation and consolidate its services with its Hyderabad, India, facility, where work demand was greater.
"The smart thing to do was combine these two facilities," Garguilo said.