September 08, 2006
Pharma companies turn to Asia for drug discovery outsourcing
In an earlier post, I had mentioned the possibility of the pharma outsourcing market touching $53bn by 2010. Now let's focus on a particular aspect of this outsourcing space—the burgeoning drug discovery marketplace.
The availability of drug discovery services in Asian countries at a fraction of the cost prize operating in the West is propelling pharma companies towards India and China. There is also a growing perception that the quality of CROs and pharma firms in India and China is constantly setting new standards, and this works with the cost factor as a lethal combination against other competitive geo-polities.
The drug discovery requirement is growing at a phenomenal rate of 50% every five to seven years, and most of the business opportunities are coming Asia’s way; Eastern Europe is the only other aspiring playfield that enjoys an increasing patronage of pharma companies for their drug discovery services.
However, India and China are still to overcome hurdles such as IP protection, trust, honesty, and transparency. India enacted the Patent Protection Act in 2005 and conforms to the TRIPS agreement. It is only a matter of time before multinationals based overseas are satisfied that their intellectual property is safe in India; once that is achieved, there is no stopping Asia from bagging the lion's share of the drug discovery trade.
A new study by Kalorama Information has more on the growing drug discovery market.
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