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Article: Leveraging China and India: two countries are the key to staying competitive in cost, talent and innovation.(Company overview)
- Article from:
- Chief Executive (U.S.)
- Article date:
- March 1, 2009
- Author:
CopyrightCOPYRIGHT 2009 Chief Executive Group LLC. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The pharmaceutical industry provides a near-perfect example of how leveraging China and India--for not just cost efficiency but also talent and innovation--is becoming central to survival and success for many Fortune 1000 companies.
According to Jean-Pierre Garnier, the recently retired CEO of Glaxo-SmithKline, in 1990, the cost of discovering and developing a new drug was less than S100 million. Today, it is more than $1 billion. In 1980, the industry spent a total of $2 billion on R&D. In 2006, it spent over $40 billion--with virtually no increase in the number of drugs approved by the FDA. The industry's response to declining R&D productivity and thus a ...