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Sanofi Makes Good On Outsourcing Promise In Deal With Covance

Sanofi-Aventis’ multi-layered 10-year deal with the contract research organization Covance, announced September 30, 2010, is yet another sign of the pressure within Big Pharma to cut R&D costs even as it searches for new sources of innovation.

With pharma under pressure from patent expirations and lack of innovative new products, research productivity is a hot button issue. ( See "Pharma: Serious About Change?," this issue Also see "Pharma: Serious About Change? " - In Vivo, 1 October, 2010..) Large drug companies increasingly rely on external sources to fill pipelines, but some industry observers say they're not going far enough. Sanofi' multi-layered 10-year deal with the contract research organization Covance Inc., announced September 30, 2010, is yet another sign of the pressure within Big Pharma to cut R&D costs even as it searches for new sources of innovation. [See Deal]

Increasingly, industry is talking up the value of externalization via deal-making, including in-licensing mid- to late-stage assets while outsourcing development...

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