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Outsourcing Drug Discovery to China and India
Decision Resources, Inc., Nov 2007, Pages: 32
Introduction:
Driven by the need to improve R&D productivity and efficiency and the desire to access untapped markets, global pharmaceutical companies have increasingly offshored and outsourced operations to CROs in China and India. A wide array of factors, however, can dictate whether such a move is successful; in this report, we examine the myriad potential savings and costs that can contribute to the success or failure of outsourced drug-discovery tasks.
Get the Answers You Need to Shape Your Strategy:
- Global pharmaceutical companies (GPCs) are increasingly outsourcing early-stage drug discovery to China and India. What market factors are driving this outsourcing trend? What benefits beyond the obvious cost savings might a company reap through outsourcing?
- Outsourcing may not meet a company’s expectations of higher productivity. What complicating factors might emerge that could undermine anticipated productivity and savings? How might companies plan their strategies to compensate for these complications?
- While IP protection in China and India is improving, with both countries now bound by the WTO’s IP rules, GPCs continue to face IP hurdles. What challenges might GPCs face in resolving conflicts between local and international law regarding patents?
- China and India are both attractive venues for offshoring and outsourcing. Also, Indian generics companies will eventually compete in the global innovative drug market. What are the comparative strengths and weaknesses of companies in China and India for these tasks and operations? How might these factors influence a GPC’s decision to do business in either of these two countries?
Scope:
Rationale for outsourcing: primary reasons behind the decision to outsource various functions.
Hidden costs of outsourcing: overview of factors that can delay or derail an outsourced project.
Intellectual property protection: local conditions and IP laws in China and India.
Business environment and infrastructure: market conditions in China and India for the pharmaceutical and biotech industries.
Outsourcing business models: overview of four major business models in India and China for companies and institutions specializing in outsourcing, with special attention paid to the CRO industry.
Market outlook: the future of outsourcing drug discovery to China and India.
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