The Indian companies have made a great strides in the global arena across the different business segments. They have also demonstrated their ability to play the leaders roles in each of the segments. It has been observed that the Indian is emerging as a preferred destination for the pharmaceutical companies outsourcing venture of the drug discovery, clinical research and a contract manufacturing functions. To a study by the PriceWaterhouseCoopers on the changing dynamic of the pharma outsourcing to Asia. The India is being recognized as the best outsourcing pharma destination that is followed by the Korea and Taiwan.
The India pharma industry earned $8.60 billion through the exports in 2009 and it is growing at around 14 percent as compared to 2008. The contribution of the intermediates and active pharmaceutical ingredients was around 35 percent while formulations was 65 percent. The Indian Contract Research and Manufacturing Services market reached $1.70 billion in the year 2008-2009. The drug discovery services contributed around 15 percent of CRAMS revenue achieving $0.24 billion in 2008-2009. The clinical research achieved the $0.35 billion mark, it contributes 20 percent to the CRAMS space.
India has proved that as an excellent value proposition for the global pharma companies, most that who are leveraging on India’s cost competitiveness and a large pool of the technically skilled manpower. The key lucrative features of the lower costs and the greater market opportunity far outweigh, the higher the risks compared with the more established and mature regulatory regimes of the countries like Australia, Japan and as well as Singapore. The domestic pharmaceutical industry has been an out performer. The global pharma outsourcing market is worth nearly $55-60 billion and it is expect5ed to reach $70 to reach billion by the year 2010. The different segments would primarily be contract chemistry and biology research as well as contract manufacturing and the clinical research.
The India pharma outsourcing industry will be a $2.5 billion market by 2012. The Indian clinical trial market stands at $275 million and it is expected to grow at a CAGR of 30 percent for the next few years. The contract manufacturing accounts for the maximum share of the total manufacturing outsourcing business in the country. The India, China and Singapore are among the Asia most preffered outsourcing destinations for the global pharma/biotech companies. The Asian territories provide a significant cost advantage for the pharma manufacturing. India with its large population has a vast pool of treatment facilities, which it helps to translate into a faster patient recruitment in the clinical trials process and it helps in the meeting the overall timelines faster. Into the markets, it helps pharma biotech multinational companies to get their products earlier into the markets.
The Indian pharma companies are quick to realize the opportunities in the global pharma manufacturing market and it has undertaken a significant investments in the last decade in creating capacities of the global standards to serve the highly attractive regulated markets. As the big pharma giants continue to find ways to maintain a growth and contain cost, outsourcing is likely to become a compulsion more than a strategic choice and India is well positioned to be at the forfront with its manufacturing prowess and inherent advantage of talent.
REFERENCE:
http://www.wtgnews.com/2010/08/india-is-poised-to-be-in-the-forefront-of-outsourcing-by-pharma-companies/
