subject: CROs: A Brief History [print this page] Contract research organizations or CRO had steadily gained success and achieved a top position. With its successful foray into the pharma and biotechnology sector, it had translated into profits for investors. This all is now a thing of past and no longer prevails, the scene has completely changed.
What paved way for their winning streak, was outsourcing projects meant cutting costs for pharmaceutical companies; workforce and revenue could be re-directed towards other avenues and aided the research process. CRO's initiated researched, prepared reports at every stage, conducted detailed quality analysis and ensured that all was in sync with the rules and procedures laid down by FDA.
CRO's offer a wide range of services to the pharmaceutical companies; right from product planning like drug development, drug formulation, clinical research including conducting clinical trials, clinical research and other stages like Sample collection, medical writing services, preclinical, toxicology, and clinical laboratory services. Prepare extensive documentation required for the approval like Abbreviated New Drug Application (ANDA), or Biologic License Application (BLA). CRO's efficiently and more importantly cost-effectively handled everything.
However, from 2008, the trend changed and hiring services of Contract research organizations declined and came to a grinding halt. There were major layoffs across the pharmaceutical industry.
The guidance affected everything. Though the companies continued its pursuit of new drug discovery and developmental research, new obstacles like funding issues and patent problems harrowed the companies. The year 2008 also saw major cost cutting moves like employee lay offs, postponing projects to the next year, change the company focus from product development to later-stage drug development programs.
Owing to all this, the CRO's faced the flak and resulted in stock prices hitting an all time low and their downfall began. There is another side to it, sacking of employees from the pharmaceutical industry meant that more workforce ready to work for lower salaries was made available to the CRO's, but it also meant there was a constant pressure on the CRO's to survive and emerge as a successful venture.
The highlight and a point to be noted is rather than focusing on cost of human resources, companies need to ensure a quality of staff hired.
If the trend continues, it will eventually lead to many more issues and problems and will affect not only the economy but will also result in lesser research and development; the latter issue is more important as it addressed the health industry that is important and vital for any nation.
One more hassle is the struggle and danger awaiting the workers belonging to the clinical research sector and medical sectors is What next'? They have to explore different avenues to keep pace with the changing trends and situation or face lay-off and unemployment or work for lesser salary.
