Indian Clinical Research Industry

An insider's perspective of how emerging economies particularly India is posing challenges to western companies in the clinical research industry.

India is rapidly becoming preferred destination for clinical trials because of large heterogeneous patient population and English-speaking physicians. It also has built reputation for meeting regulatory requirements and providing well accepted, good quality, auditable data. With low recruitment cost, developing infrastructure, better regulatory framework, Indian CRO industry is expected to grow to $1b by 2010.

· Indian CRO industry provides opportunities for western firms in terms of growing market, increasing efficiencies through faster cycles and resources.

· Threats are increasing from Indian CRO firms, who are giving tough competition both in global markets as well as home turf, are learning technical know how and gaining competitive advantage.

Outsourcing of drug research and development to contract research organizations (CROs) is a well established practice in the pharmaceutical industry and continues to be driven by financial and technological imperatives. The R&D services most commonly outsourced are clinical monitoring for Phase II-IV trials, clinical trial project management and data management. Overall, CROs are able to shorten clinical testing times by as much as 30%.

In the last decade, India has emerged as an important clinical trials destination for global pharmaceutical and contract research organisations (CROs). In 2005, the global market for contract research was dominated by the US and Western Europe; Eastern Europe comprised 10.7% while India accounted for 0.7% and China made up 0.5%. By 2010, however, Eastern Europe will comprise 13.3%, India will account for 2.4% and China will represent 1.1%. [1]

The face of the industry is changing rapidly with large multinational CROs partnering with local Indian CROs to put their dot on the South Asian map.

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[1] PHARMACEUTICAL OUTSOURCING STRATEGIES: Market expansion, offshoring and

strategic management in the CRO and CMO marketplace: Alison Sahoo