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Merck’s Collaboration with WuXi PharmaTech, Shanghai

A presentation by David M. Stout, Ph.D., Director, Global Basic & Pre-clinical Sourcing, Merck Research Laboratories
The pharmaceutical industry is renowned for the complexity of its development process, its risky projects, and its low-yield product pipeline. With increasing pressures on the industry, many of the so-called “Big Pharma” firms have decided that they can’t afford not to outsource non-core activities. One example is Merck & Co., Inc., which has forged a mutually successful partnership with China-based WuXi PharmaTech, a Contract Research Organization with less than ten years in the field. This presentation details the development of Merck’s partnership with a supporting Chinese firm and how that relationship slowly evolved to greater degrees of trust and commitment. It first presents an overview of the drug discovery process and provides a rationale for outsourcing in general – and outsourcing to China in particular. The presentation discusses the business criteria used to assess partners and then recounts the case history of the projects Merck has engaged in with WuXi. Recently, these projects have included FTEs dedicated to Merck and the development of a site dedicated to Merck projects at WuXi’s Shanghai location.
(21 pages)


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