Off-shore or Local – or somewhere in between? - Pharmaceutical development services from Hungary

Although there are signs that the world is finding its way out of the economic crisis, pressures on companies within the pharmaceutical industry to reduce costs, but drive products to market are considerable. With a number of blockbusters about to come off patent, big pharma companies have undergone a series of mergers and acquisitions, with cutbacks and closures ensuing. The resulting reduction of in-house R&D and production capacities means many have gone to Asia to buy products and services.

“To raise new questions, new possibilities, to regard old questions from a new angle, requires creative imagination and marks real advances in science.”
-Albert Einstein

In contrast small and medium-sized companies often prefer to work with local service providers when outsourcing work as part of development programmes. Sometimes worries about the safety of intellectual property (IP) are cited amongst the reasons for this. Communication may also be an issue, with language and understanding being areas of concern. Above all, quality of service and products are of great importance. Being based in Hungary, a relatively low cost area of the EU, but with a strong tradition in chemistry and pharmaceutical sciences, means that Ubichem Research Ltd. is well placed to address the challenges presented by the changing pharmaceutical outsourcing landscape.

Hungary has a strong tradition of innovation and science. Laszlo Biro, credited with inventing the ballpoint pen, was born in Budapest in 1899, and lived there until 1943 when he moved to Argentina. In computing, Charles Simonyi, as head of Microsoft's application group oversaw the creation of the Microsoft Office suite of applications, and Andrew Grove (Andras Grof) was president, CEO and chairman of Intel, a major producer of microprocessors. Then, of course there was the inventor Erno Rubik, best known for mechanical puzzles including the Rubik's Cube.

For a small country Hungary has punched well above its weight when it comes to Nobel prizes in Chemistry, with five Hungarians being awarded such prizes. The most recent was George Olah in 1994, for his work on hydrocarbons, the ingredients of oil and natural gas. Prior to moving to the USA Olah established a small research group in organic chemistry in the Central Chemical Research Institute of the Hungarian Academy of Sciences in 1954. Such state funded research institutes flourished in the Soviet era, with similar organisations existing for polymer chemistry, petrochemistry and medicine among others. When the system collapsed the research institutes lost funding, but this presented other opportunities as they became industrial parks where new enterprises emerged and co-existed alongside significantly smaller research institutes. It was in such an environment that Ubichem Research was founded in 1996 at the Research Institute where George Olah had worked.

In addition Hungary has a well-established pharmaceutical industry, becoming a significant producer of pharmaceuticals during the Soviet era. Gedeon Richter is the only Hungarian-based pharmaceutical company that doesn't have a foreign strategic investor. Recognising the potential in the area Sanofi-Aventis acquired Chinoin and has invested heavily in R&D facilities there. Another French company Servier has had a majority share in Egis since 1995 and openedthe  Servier Research Institute in Budapest in 2008. Teva also have facilities in Hungary, formerly belonging to Biogal, Novopharm, and the former Research Institute for Medicine resulting from the acquisition of IVAX. On top of this a 2009 report on "Biotech in the New EU Member States" funded by the European Commission's 6^th Framework Programme suggested that Hungary had the most advanced biotech sector of the 14 new member states and candidate countries included in the survey. Such a background has enabled Ubichem to build a team of talented people able to meet the needs of our partners within the pharmaceutical industry.

Ubichem, as a relatively small service provider, is able to adapt rapidly to the changing requirements of its customers, something that happens regularly during API development programmes. Our labs and multipurpose plant undertake projects from late discovery to phase III clinical trials.

A comprehensive range of chemistry services is available - along with analytical and process research and development, scale-up, process validation and clinical API manufacturing , we also offer radiolabelling (³H and ¹⁴C), analytical services, salt screening, crystallisation and stability studies, impurity profiling and preparation of reference standards.

We deliver what has been ordered, but also think ahead in relation to a customer's needs, and are not afraid to try innovative ideas, even if it means taking some risk on our part. Such a proactive approach can prove beneficial in compressing the timeframe of projects, thus improving speed to market and maximising sales before patents expire. Reliability, quick decision-making and excellent problem-solving skills, coupled with the relatively low cost base in Hungary, make Ubichem a preferred partner for many pharmaceutical and biotech companies.

So, is the decision to outsource limited to off-shore or local, or is there somewhere in between that encompasses the best of both?