RETHINKING THE R&D OUTSOURCING BALANCE
Case Study
A European pharma company had built its R&D model around extensive use of CROs and specialist external partners.
Rising external costs and evolving sponsor oversight expectations were prompting the organisation to reconsider the long-term balance between internal and external capability.
We partnered with its leadership team to develop a phased strategy for a phased hybrid & internal R&D model.
THE CHALLENGE
Assess the strategic case
Determine where greater internal capability could strengthen oversight, ownership and long-term value.
Define a realistic transition
Identify how different R&D functions could move in-house over time without disrupting active studies.
Support investment decisions
Provide senior leaders and the board with credible options, costs and timescales for consideration.
OBJECTIVES
Operating-model assessment
Collaborative scenario development exploring several transition models
Function-by-function phasing based on business priorities, study maturity and the practical sequencing of new capabilities
Ownership analysis
Financial modelling, ROI timelines and guardrails
APPROACH
A phased strategic roadmap
The organisation gained a structured view of how a more internal or hybrid R&D model could develop over several years.
Clearer investment choices
Leadership could compare different transition scenarios, cost points and anticipated return-on-investment timelines.
A basis for board discussion
The strategy provided a credible foundation for evaluating investment and deciding whether to progress into detailed implementation planning.
RESULT
The work enabled the organisation to look beyond a simple choice between outsourcing and full internalisation. By considering each function, study and capability separately, it created a more pragmatic path towards stronger sponsor ownership while preserving the benefits of selected external partnerships.
The resulting roadmap was taken forward for senior executive and board-level investment consideration.
THE CONCLUSION
If you’re looking to strengthen alignment across Global, Regional, and Local pricing/ access teams and move towards more proactive, strategic pricing, we’re happy to share how this approach could translate to your context.