India’s success in the global custom research and manufacturing services space (CRAMS) is well documented. And the untapped potential is huge especially as western pharmaceutical companies remain under pressure to cut costs.
According to one estimate, the global manufacturing outsourcing opportunity is likely to grow from US$20bn in 2006 to US$31bn in 2010. The global contract research opportunity is expected to expand from US$14bn to US$24bn during the same period.
India has a minor share of the global market and is well positioned for growth if companies can successfully overcome the challenges coming their way.
A recent report by KPMG on the pharmaceutical and CRAMs segment highlights training and infrastructure as one area.
“Education pertaining to contract research, including discovery services and clinical trials, needs to be given high priority. An adequate physical infrastructure coupled with specialised training and an industry wide accreditation system will help balance the demand-supply equation in this rapidly growing industry,” says KPMG.
The other issue that needs attention is compliance of intellectual property rights. “Issues related to data exclusivity and confidentiality are still areas of concern for most clinical trials sponsors. Stronger IPR compliances will instil greater confidence in multinational pharma companies will further boost the CRAMS segment,” says KPMG.