Today's pharmaceutical companies operate in one of the most research-intensive, multinational, and regulated industries in the world. Most spend an average of 10-20 percent of revenues on research and development (R & D), with foreign sales averaging 45-55 percent. The steadily rising cost of developing new compounds along with rapid advances in research technology have added pressure to operating margins and increased competition in key therapy areas. Further complicating the industry's profit outlook is the unpredictability of FDA approvals, as well as an unprecedented number of patent expirations between 2000 and 2004.

Success in this complex environment requires a rich product pipeline, strict cost controls, effective sales and marketing, and favorable trends in return on invested capital (ROIC). Since 1998, Ariba has been a leader in helping pharmaceutical manufacturers meet those goals - with Ariba Spend Management solutions currently being used in eight of the top ten global pharmaceutical companies.