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Abstract

With escalating operational costs, patent expiries and high research and development (R&D) expenditure, global pharmaceutical companies have been looking to outsource their manufacturing and R&D development to ''low cost'' countries such as India and China. The Tufts Center for Drug Development established that the cost of bringing a new drug into the market was between $802 and $880 million and took about 15 to 17 years. Clinical trials (CTs) are a major part of these costs. Many global companies outsource this job to Contract Research Organisations (CROs). Analysts estimated that the CRO market would be worth $20 billion by 2010. India, with its nimble chemistry skills, vast population, ethnic diversity, uninformed patients, ease of patient registration and low cost advantages both in research and manufacturing, caught the attention of global companies to conduct CTs. The case offers rich insights into the booming CTs market in India and the numerous opportunities available to the global companies to outsource and conduct CTs.
Location:
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Other setting(s):
2004

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Abstract

With escalating operational costs, patent expiries and high research and development (R&D) expenditure, global pharmaceutical companies have been looking to outsource their manufacturing and R&D development to ''low cost'' countries such as India and China. The Tufts Center for Drug Development established that the cost of bringing a new drug into the market was between $802 and $880 million and took about 15 to 17 years. Clinical trials (CTs) are a major part of these costs. Many global companies outsource this job to Contract Research Organisations (CROs). Analysts estimated that the CRO market would be worth $20 billion by 2010. India, with its nimble chemistry skills, vast population, ethnic diversity, uninformed patients, ease of patient registration and low cost advantages both in research and manufacturing, caught the attention of global companies to conduct CTs. The case offers rich insights into the booming CTs market in India and the numerous opportunities available to the global companies to outsource and conduct CTs.

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Location:
Industry:
Other setting(s):
2004

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