-

The New Trends of Drug R&D

Outsourcing in China and India

JZMed, Inc.

Report Description
The rises of China and India as two key emerging markets provide enormous
opportunities to both multinational drug companies and professional outsourcing service
providers. However, there are significant differences between these two countries, in
particular in the areas related to drug R&D, which makes each country unique for certain
types of drug R&D outsourcing activities. Although multinational drug companies now
could have more choices than ever before, China and India each actually play different
roles in the long value chain of drug R&D as well as in the global pharmaceutical
outsourcing industry.
The fast growing pharmaceutical markets, coupled with their other unique features, such
as the improving technical skills and acceptable service capabilities in drug R&D of local
pharmaceutical and biotechnology companies, make both China and India so attractive to
global drug companies. They have thus become two of the most favorable outsourcing
destinations. These factors have largely explained one of the current development trends
in the world pharmaceutical industry: More and more drug companies have become
interested in conducting R&D in China and/or India, besides marketing their products in
these two countries. It has become clear that the full-scale drug R&D outsourcing
practice in these two countries is now not only feasible but also meaningful.
To all global drug companies that are interested in conducting R&D in either one of these
two countries, the key is to understand the strengths and weaknesses of the local
pharmaceutical and biotech industries, the social and cultural differences, the cost
structures, and the general industrial infrastructure of each country, as well as their
advantages and disadvantages for a specific R&D project, before they are able to decide
which country is best suitable for what projects.
The report, The New Trends of Drug R&D Outsourcing in China and India,
published by JZMed, Inc, a world renowned market research firm specialized in
pharmaceutical and biotechnology industries, has conducted so far the most complete and
comprehensive comparisons between China and India in drug R&D and the related
service industries. It is designed to help readers gain a clear understanding of which
country between China and India is better suitable for what type of R&D projects and
what different but successful R&D outsourcing strategies global drug companies have
been taking in each country.
The report first time revealed the similarities and differences between these two countries
in a broad rang of drug R&D service areas, including service scope, technical capability
and current market size, etc. It also revealed the advantages and disadvantages of each
country for conducting drug R&D and the strengths and shortcomings of local service
providers. It provides clear insights into the current development states and the future
growth potentials of the drug R&D service industry in each country. More importantly,

the report also conducted an in-depth analysis on both the past and the present R&D
outsourcing practices of global major pharma and biotech companies in each country. It
thus revealed the changes of their outsourcing strategy over the time in these two
countries and the real motivation behind these changes.
The report is a must-read book to all global pharmaceutical, biotechnology, financial
investment and outsourcing service companies that are interested in having a best
position in either one of these two countries. It is also a valuable reference book to drug
regulatory agencies and other government agencies that are involved in strategic planning
of the development of their pharmaceutical industry.

Key Features of the Report

The report is written based on the long time and in-depth investigations and studies of
the pharmaceutical and biotechnology industries in both China and India. The
investigation covers the development history of several hundred of drug R&D service
providers in each country.
Based on the study results, the report conducted head-to-head comparisons in a broad
range of drug R&D service areas in these two countries, including each countrys
advantages and disadvantages for conducting drug R&D and the strengths and
shortcomings of local service providers, current market sizes of each subsector of the
R&D service industry, current cost structure in each country and their comparison
with the developed countries, as well as their future growth potentials, including the
in-depth analysis of growth drivers and resistors, etc. It thus provides readers a clear
insight of which country is currently best suitable for what types of R&D task.
Specifically focusing on the current R&D states in China and India, the report also
analyzed the current R&D capabilities of both Chinese and Indian pharma and
biotech companies in innovative medicines, including their strengths and weaknesses,
their experiences and current R&D pipelines, and their collaborations with the
experienced multinational drug companies, as well as the outlooks of their future
development, etc.
The report provides readers an unbiased depiction of the drug R&D service industry
in both China and India with the emphases on revealing each countrys strengths and
weaknesses in drug R&D service, advantages and disadvantages for conducting drug
R&D, and their future growth potentials in the competitive landscape of global CRO
industry.
More significantly, the report contains a large number of case studies that cited a
variety of R&D activities of global major pharma and biotech companies in China
and India, and the local presences of the global R&D service providers. It revealed
the real but different strategies of these multinational companies in each country.

Table of Contents
Scope of the Report ----------------------------------------------------------------------------- 2
About Author ------------------------------------------------------------------------------------ 4
Executive Summary --------------------------------------------------------------------------- 19
China and India: The two key emerging players of global drug R&D outsourcing
Current experiences of Chinese and Indian companies in innovative drug R&D
The new trends of drug discovery outsourcing in China and India
The new trends of preclinical and toxicology research outsourcing in China and
India
The new trends of clinical development outsourcing in China and India
Analysis of best strategies for drug R&D outsourcing in China and India
Chapter One China and India: The Two Key Emerging Players of Global
Drug R&D Outsourcing -------------------------------------------------- 31
Summary ----------------------------------------------------------------------------------------1.1.Introduction ---------------------------------------------------------------------------------1.2.Current trends of global drug R&D outsourcing --------------------------------------1.2.1 Pressures currently faced by global drug companies ------------------------1.2.2 Current global drug R&D outsourcing trends ---------------------------------1. Current R&D outsourcing service demands by major pharma
companies ---------------------------------------------------------------------2. Current R&D outsourcing service demands by small biotech
companies ---------------------------------------------------------------------1.3.China and India: The two key pharmamerging markets ------------------------------1.3.1 Fast growth history and still huge future growth potential of Chinese
pharmaceutical market -----------------------------------------------------------1.3.2 Growth history and future growth potential of Indian pharmaceutical
market ------------------------------------------------------------------------------1.3.3 Attraction of still comparably-low costs of both labor and materials
in China and India ----------------------------------------------------------------1.4 China and India possess unique features attracting global pharma companies
for outsourcing ----------------------------------------------------------------------------1.5 Latest R&D activities of major pharma companies in China and India ----------1.5.1 Major pharma companies in China ---------------------------------------------1.5.2 Major pharma companies in India ----------------------------------------------1.6 Current states of Chinese and Indian CRO industries -------------------------------1.6.1 Current state and market size of Chinese CRO industry --------------------1. Current structural features of Chinese CRO industry -------------------2. Overview of current service capabilities of Chinese CRO industry ---5

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3. Current market size of Chinese CRO industry ---------------------------1.6.2 Current state and market size of Indian CRO industry ----------------------1. Current structural features of Indian CRO industry ---------------------2. Overview of current service capabilities of Indian CRO industry -----3. Current market size of Indian CRO industry ----------------------------1.6.3 Current market value of global CRO industry --------------------------------

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Chapter Two Current Experiences of Chinese and Indian Companies in

Innovative Drug R&D --------------------------------------------------- 73
Summary ----------------------------------------------------------------------------------------- 74
2.1 Introduction --------------------------------------------------------------------------------- 76
2.2 Current states of biotechnology industry in China and India ------------------------ 78
2.2.1 Current state of Chinese biotech industry -------------------------------------- 79
2.2.2 Current state of Indian biotech industry ---------------------------------------- 80
2.3 Current states of innovative drug R&D in China and India -------------------------- 84
2.3.1 Current state of innovative drug R&D in China ------------------------------- 84
1. Current state of innovative drug R&D in China -------------------------- 85
2. Chinese governments support and investment in innovative
drug R&D ---------------------------------------------------------------------- 91
3. Funding sources for innovative drug R&D in China --------------------- 92
4. Roles played by multinational drug companies in China drug R&D --- 95
5. Examples of multinational pharma/biotech companies collaborating
with Chinese companies on innovative drug R&D ---------------------- 96
2.3.2 Current state of innovative drug R&D in India -------------------------------- 99
1. Growth history of innovative drug R&D in India ------------------------ 99
2. Funding sources for innovative drug R&D in India --------------------- 101
3. Roles played by multinational drug companies in India drug R&D -- 102
2.4 Current states and capabilities of biologic drug R&D in China and India -------- 104
2.4.1 Current state and capabilities of biologic drug R&D in China ------------- 105
2.4.2 Current state and capabilities of biologic drug R&D in India -------------- 108
2.5 Key domestic players in China and India and their pipelines of innovative
drugs ------------------------------------------------------------------------------------------ 109
2.5.1 Examples of Chinese companies focusing on innovative drug R&D ----- 109
2.5.2 Examples of Indian companies focusing on innovative drug R&D ------- 115
Chapter Three The New Trends of Drug Discovery Outsourcing in China
and India ----------------------------------------------------------------- 118
Summary ---------------------------------------------------------------------------------------3.1 Introduction ------------------------------------------------------------------------------3.2 Latest trends of global drug discovery outsourcing services ----------------------3.3 Current competitive landscape and market sizes of drug discovery
outsourcing services in China and India --------------------------------------------3.3.1 Current competitive landscape and market size of drug discovery
outsourcing services in China -------------------------------------------------

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3.3.2 Current competitive landscape and market size of drug discovery

outsourcing services in India ---------------------------------------------------- 129
3.4 Current service capabilities and key players of Chinese and Indian drug
discovery service CROs ----------------------------------------------------------------- 132
3.4.1 Current service capabilities and key players of Chinese drug discovery
service CROs --------------------------------------------------------------------- 132
1. Overview of current service capabilities of Chinese CROs in drug
discovery ---------------------------------------------------------------------- 132
2. Key players of Chinese CROs offering drug discovery services ------ 134
3.4.2 Current service capabilities and key players of Indian drug discovery
service CROs --------------------------------------------------------------------- 139
1. Overview of current service capabilities of Indian CROs in drug
discovery --------------------------------------------------------------------- 139
2. Key players of Indian CROs in drug discovery services --------------- 140
3.5 Major pharma companies outsourcing drug discovery research to China and
India - Current development trends --------------------------------------------------- 144
3.5.1 Major pharma companies outsourcing drug discovery research to China -145
3.5.2 Major pharma companies outsourcing drug discovery research to India --147
3.6 R&D-focused multinational biotech companies outsourcing drug discovery
research to China and India ------------------------------------------------------------- 150
3.6.1 Small biotech companies outsourcing drug discovery research to China -150
3.6.2 Small biotech companies outsourcing drug discovery research to India -- 153
3.7 Growth potentials of Chinese and Indian drug discovery outsourcing service
markets Future outlook ---------------------------------------------------------------- 154
3.7.1 Future growth outlook of China drug discovery outsourcing service
market ------------------------------------------------------------------------------ 154
3.7.2 Future growth outlook of India drug discovery outsourcing service
market ------------------------------------------------------------------------------ 157
3.8 Current states of genomics and proteomics research and outsourcing services
in China and India ------------------------------------------------------------------------ 159
3.8.1 Current state of genomics and proteomics research and outsourcing
services in China ------------------------------------------------------------------ 160
1. Current service capabilities and key players of Chinese CROs in
genomics and proteomics research ---------------------------------------- 160
2. Multinational drug companies outsourcing genomics and proteomics
research to China - Current development trends ------------------------ 164
3. Multinational companies outsourcing target identification and
validation research to China ----------------------------------------------- 165
3.8.2 Current competitive landscape of genomics and proteomics research
services in India ------------------------------------------------------------------- 166
1. Current competitive landscape of genomics and proteomics research
in India ------------------------------------------------------------------------ 167
2. Current service capabilities and key players of Indian CROs in
genomics and proteomics research ---------------------------------------- 167
3. Examples of multinational companies collaborating with Indian
companies on genomics and proteomics research ---------------------- 169

3.8.3 Growth potentials of Chinese and Indian genomics and proteomics

research service markets Future outlook ----------------------------------- 170
Chapter Four The New Trends of Preclinical and Toxicology Research
Outsourcing in China and India ------------------------------------- 173
Summary --------------------------------------------------------------------------------------- 174
4.1 Introduction ------------------------------------------------------------------------------- 176
4.2 Latest trends of global preclinical development and toxicology research
outsourcing -------------------------------------------------------------------------------- 176
4.3 Current competitive landscape and market sizes of preclinical development
and tox research services in China and India ---------------------------------------- 179
4.3.1 Current competitive landscape and market size of preclinical
development and tox research services in China ----------------------------- 179
4.3.2 Current competitive landscape and market size of preclinical
development and tox research services in India ------------------------------ 182
4.4 Current service capabilities and key players of Chinese and Indian CROs in
preclinical development and tox research services --------------------------------- 182
4.4.1 Current service capabilities and key players of Chinese CROs in
preclinical development and tox research services -------------------------- 182
1. Current service capabilities of Chinese preclinical and tox research
service CROs ---------------------------------------------------------------- 183
2. Current facilities of Chinese preclinical research service CROs ------ 185
3. Major Chinese CROs providing preclinical development and tox
research services ------------------------------------------------------------- 185
4. Examples of multinational preclinical research service CROs in
China -------------------------------------------------------------------------- 188
4.4.2 Current service capabilities and key players of Indian CROs in
preclinical development and tox research services --------------------------- 189
4.5 Multinational companies outsourcing preclinical development and tox research
to China and India Current development trends ------------------------------------- 194
4.5.1 Multinational companies outsourcing preclinical development and tox
research to China Current development trends ----------------------------- 194
4.5.2 Multinational companies outsourcing preclinical development and tox
research to India - Current development trends ------------------------------ 196
4.6 Growth potentials of Chinese and Indian preclinical development and tox
research service markets Future outlook ------------------------------------------- 197
4.6.1 Growth potential of Chinese preclinical development and tox research
service market Future outlook ------------------------------------------------ 198
4.6.2 Growth potential of Indian preclinical development and tox research
service market Future outlook ----------------------------------------------- 200
Chapter Five The New Trends of Clinical Development Outsourcing in
China and India ---------------------------------------------------------- 202
Summary --------------------------------------------------------------------------------------- 203

5.1 Introduction ------------------------------------------------------------------------------- 205

5.2 Latest trends of global clinical trial outsourcing ------------------------------------ 206
5.3 Current competitive landscape and market sizes of clinical development
services in China and India ------------------------------------------------------------ 208
5.3.1 Current competitive landscape and market size of clinical development
services in China ------------------------------------------------------------------ 209
5.3.2 Current competitive landscape and market size of clinical development
services in India ------------------------------------------------------------------- 211
5.4 Current regulatory states of clinical trial in China and India ----------------------- 215
5.4.1 Current regulatory state of clinical trial in China ---------------------------- 215
5.4.2 Current regulatory state of clinical trial in India ----------------------------- 216
5.5 Current service capabilities and key players of Chinese and Indian CROs
in clinical trial services ------------------------------------------------------------------ 218
5.5.1 Current service capabilities and key players of Chinese CROs in
clinical trial services ------------------------------------------------------------- 218
1. Key Chinese CROs offering clinical trial services ---------------------- 219
2. Multinational clinical trial service CROs in China ---------------------- 222
5.5.2 Current service capabilities and key players of Indian CROs in clinical
trial services ----------------------------------------------------------------------- 226
1. Key Indian CROs offering clinical trial services ------------------------ 227
2. Multinational clinical trial service CROs in India ----------------------- 234
5.6 Multinational drug companies outsourcing clinical trials to China and IndiaCurrent development trends ------------------------------------------------------------ 236
5.6.1 Multinational drug companies outsourcing clinical trials to China
Current development trends ---------------------------------------------------- 237
1. Major pharma companies outsourcing clinical trials to China --------- 237
2. Global biotech companies outsourcing clinical trials to China -------- 238
5.6.2 Multinational drug companies outsourcing clinical trials to India
Current development trends ---------------------------------------------------- 239
5.7 Growth potentials of Chinese and Indian clinical trial service markets
Future outlook ---------------------------------------------------------------------------- 241
5.7.1 Growth potential of Chinese clinical trial service market Future
outlook ----------------------------------------------------------------------------- 241
5.7.2 Growth potential of Indian clinical trial service market Future outlook -243
5.8 Current states of bioanalytical services in China and India ------------------------ 246
5.8.1 Bioanalytical services in China ------------------------------------------------- 247
5.8.2 Bioanalytical services in India -------------------------------------------------- 250
Chapter Six Analysis of Best Strategies for Drug R&D Outsourcing in
China and India ------------------------------------------------------------ 255
Summary --------------------------------------------------------------------------------------- 256
6.1 Introduction ------------------------------------------------------------------------------ 258
6.2 General comparisons of pharmaceutical industry between China and India ---- 260
6.2.1 Comparison of general industrial infrastructure between China and
India -------------------------------------------------------------------------------- 260

1. General industrial infrastructure in China -------------------------------- 260

2. General industrial infrastructure in India --------------------------------- 261
6.2.2 Comparison of business philosophy between Chinese companies and
Indian companies ---------------------------------------------------------------- 263
1. Chinese business philosophy ----------------------------------------------- 263
2. Indian business philosophy ------------------------------------------------ 264
6.2.3 Comparison of workforce structure in pharmaceutical industry between
China and India ------------------------------------------------------------------- 264
1. Workforce structure of Chinese pharmaceutical industry -------------- 264
2. Workforce structure of Indian pharmaceutical industry ---------------- 265
6.2.4 Comparison of current labor and raw material costs in pharmaceutical
industry between China and India ---------------------------------------------- 266
6.3 Comparisons of biotechnology industry between China and India and in-depth
analysis of their future development prospects -------------------------------------- 269
6.4 Comparison of innovative drug R&D between China and India and in-depth
analysis of their future development prospects -------------------------------------- 273
6.5 In-depth analyses and comparisons of drug R&D outsourcing service industry
between China and India ---------------------------------------------------------------- 277
6.5.1 Comparison of service capabilities between China and India in target
identification and validation ---------------------------------------------------- 278
6.5.2 Comparison of drug discovery service capabilities between China and
India -------------------------------------------------------------------------------- 279
6.5.3 Comparison of service capabilities between China and India in
preclinical and tox research services ------------------------------------------- 279
6.5.4 Comparison of service capabilities between China and India in clinical
trials -------------------------------------------------------------------------------- 280
6.5.5 Current performances of multinational clinical trial service CROs in
China and India ------------------------------------------------------------------ 282
6.5.6 Local domestic major pharma companies roles in drug R&D
outsourcing services in each country ------------------------------------------ 284
6.5.7 Conclusions ----------------------------------------------------------------------- 284
6.6 Analysis of different R&D strategies of major pharma companies in China
and India ----------------------------------------------------------------------------------- 289
6.6.1 Major pharmas China R&D strategies --------------------------------------- 290
6.6.2 Major pharmas India R&D strategies ---------------------------------------- 295
6.7 Analysis of different outsourcing strategies of major pharma companies in
China and India --------------------------------------------------------------------------- 299
6.8 Comparison of future growth potentials of drug R&D outsourcing service
markets between China and India ---------------------------------------------------- 300
6.9 Analysis of future growth obstacles of Chinese and Indian CRO industry ------ 303
6.9.1 Fast rising labor cost ------------------------------------------------------------ 303
6.9.2 Weak service capabilities ------------------------------------------------------- 303
6.9.3 Low service demands by local drug companies ------------------------------ 305
6.9.4 Less robust regulatory systems ------------------------------------------------- 306
6.9.5 Competitions from other Asian countries ------------------------------------- 307

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Appendix --------------------------------------------------------------------------------------- 309

Appendix I. Research Methodology --------------------------------------------------------- 310
Appendix II. About JZMed, Inc. ------------------------------------------------------------- 311
List of Tables
Table 1. Advantages of outsourcing ---------------------------------------------------------- 34
Table 2. Pressures currently facing global pharmaceutical industry --------------------- 35
Table 3. FDAs approval rates of new drugs in recent six years -------------------------- 37
Table 4. Statistic distribution of failure rates in each development stage of drug
R&D ------------------------------------------------------------------------------------ 37
Table 5. Factors contributing to high failure rates in drug development ---------------- 38
Table 6. Factors negatively affecting the sustainability of traditional
pharmaceutical operating model ---------------------------------------------------- 39
Table 7. R&D service areas currently most desired by major pharma companies ------ 41
Table 8. New outsourcing trends after financial crisis ------------------------------------- 44
Table 9. Common attractive features China and India both possess --------------------- 46
Table 10. Unique advantages (resources) China and India currently possess over
other developing countries -------------------------------------------------------- 46
Table 11. Development history, current market size and future growth forecast
of the Western-style medicines in Chinese pharmaceutical market ---------- 47
Table 12. Current market value and growth history of Indian pharmaceutical market -48
Table 13. Comparison of labor costs (FTE rates) in various locations of the world --- 50
Table 14. Key advantages of China and India over developed countries ---------------- 50
Table 15. Benefits of global drug companies entering Chinese and Indian markets --- 51
Table 16. Current activities of global major pharma companies in Chinese market --- 53
Table 17. R&D outsourcing development trends of major pharma in China ----------- 54
Table 18. Current market value and past growth history of Chinese CRO industry --- 66
Table 19. Current market value and past growth history of Indian CRO industry ----- 70
Table 20. Current market value and past growth history of global CRO industry ----- 72
Table 21. Analysis of new trends evolving in global pharma outsourcing industry --- 76
Table 22. Current structural composition of Chinese biotech industry ------------------ 79
Table 23. Current structural composition of Indian biotech industry -------------------- 81
Table 24. Comparison of biologic product markets between China and India ---------- 82
Table 25. Current state of Indian biotech industry ------------------------------------------ 84
Table 26. Drivers forcing China to be determined to increase investment in and
focus on R&D for new medicines ------------------------------------------------- 85
Table 27. R&D strategies currently practiced by Chinese biotech companies ---------- 88
Table 28. Analysis of licensing deals between multinational drug companies and
Chinese companies ------------------------------------------------------------------ 89
Table 29. Current R&D pipelines of innovative drugs in China -------------------------- 91
Table 30. Growth trends of Chinese governments investment in innovative drug
R&D and comparison with R&D investment of Indian government --------- 91
Table 31. Major pharma companies having corporate venture investment offices
in China ------------------------------------------------------------------------------- 92

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Table 32. Growth trend of VC investments in Chinese life science industries --------- 94
Table 33. Funding sources for innovative drug R&D in China --------------------------- 95
Table 34. Major pharma companies having (or planning to have) Asia-Pacific
operating (or R&D) headquarters in China -------------------------------------- 96
Table 35. Current key forces in Indias innovative drug R&D efforts ------------------ 100
Table 36. Chinese companies conducting innovative drug R&D and their product
pipelines ---------------------------------------------------------------------------- 113
Table 37. Chinese companies conducting clinical trials in regulated countries ------- 114
Table 38. Current pipelines of novel drugs under development in some major
Indian pharma companies --------------------------------------------------------- 116
Table 39. Current R&D spending breakdown by research activities ------------------- 123
Table 40. Current growth drivers of Chinese drug discovery outsourcing service
market ------------------------------------------------------------------------------- 127
Table 41. Small molecule drug discovery outsourcing in China approaching
mature ------------------------------------------------------------------------------- 127
Table 42. Current market value and past growth history of Chinese drug discovery
outsourcing services --------------------------------------------------------------- 129
Table 43. Analysis on growth slowdown of drug discovery outsourcing in India ---- 131
Table 44. Current market value and past growth history of Indian drug discovery
outsourcing services --------------------------------------------------------------- 132
Table 45. Representative Chinese CROs offering drug discovery services
(Including their service capabilities and contact information) --------------- 136
Table 46. Representative Indian CROs offering drug discovery services
(Including their service capabilities and contact information) --------------- 141
Table 47. Multinational CROs entering India to offer drug discovery services ------- 144
Table 48. Examples of major partnerships forged in the recent years between major
pharma companies and Indian companies on drug discovery research ----- 148
Table 49. Common outsourcing models of multinational biotech companies in
China --------------------------------------------------------------------------------- 152
Table 50. Analysis of future growth opportunities in China drug discovery services -155
Table 51. Forecasted future growth of Chinese drug discovery service market ------- 156
Table 52. Forecasted future growth of global drug discovery service market --------- 157
Table 53. Growth drivers of Indian drug discovery service market --------------------- 158
Table 54. Forecasted future growth of Indian drug discovery service market --------- 158
Table 55. Genomics and proteomics research services currently available in China --161
Table 56. Representative Chinese companies providing genomics and proteomics
research services (Including their service capabilities and contact
information) ------------------------------------------------------------------------- 162
Table 57. Latest examples of collaboration between Chinese organizations and
multinational companies on development of biomarkers and/or
molecular diagnostics in China --------------------------------------------------- 164
Table 58. Examples of multinational companies collaborating with Chinese
organizations on target identification and validation ------------------------- 166
Table 59. Representative Indian CROs providing genomics and proteomics research
services (Including their service capabilities and contact information) ---- 168
Table 60. Current market value and future growth forecast of genomics and

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proteomics research services in China and comparisons with its Indian

counterparts ------------------------------------------------------------------------ 171
Table 61. Forecasted future growth of global genomics and proteomics research
service market --------------------------------------------------------------------- 172
Table 62. Factors affecting the current low demands for global preclinical
development and tox research services ----------------------------------------- 177
Table 63. Chinas advantages in preclinical development and toxicology research --180
Table 64. Analysis of current slow growth of Chinese preclinical and tox research
service market --------------------------------------------------------------------- 181
Table 65. Potential hurdles facing future growth of Chinese preclinical and tox
research service market ----------------------------------------------------------- 181
Table 66. China-based CROs (or research organizations) accredited by AAALAC --183
Table 67. Representative Chinese CROs providing preclinical development and
tox research services (Including their service capabilities and contact
information) ------------------------------------------------------------------------- 186
Table 68. Representative Indian CROs providing preclinical development and
tox research services (Including their service capabilities and contact
information) ------------------------------------------------------------------------- 190
Table 69. Market growth forecast of Chinese preclinical development and tox
research services ------------------------------------------------------------------- 198
Table 70. Market growth forecast of global preclinical development and tox
research services ------------------------------------------------------------------- 199
Table 71. Market growth forecast of Indian preclinical development and tox
research services and comparison with its Chinese counterpart ------------ 201
Table 72. Attractions of Asia Pacific region for global clinical trials ------------------ 205
Table 73. Factors causing clinical trials so difficult --------------------------------------- 207
Table 74. New developments in global clinical trials ------------------------------------ 207
Table 75. Comparisons of patient recruiting time and site setup time between
China and India --------------------------------------------------------------------- 210
Table 76. Current market value and past growth history of clinical trial services
in China ------------------------------------------------------------------------------ 211
Table 77. Growth trend of clinical trials conducted in India and its comparison
with China --------------------------------------------------------------------------- 213
Table 78. Comparison of clinical trial cost between China and India ------------------ 213
Table 79. Current market value and past growth history of clinical trial service
in India ------------------------------------------------------------------------------- 214
Table 80. Comparisons of current clinical trial approval time between China and
India --------------------------------------------------------------------------------- 216
Table 81. Past five-year death incidents in clinical trials in India ----------------------- 217
Table 82. Representative Chinese CROs offering clinical trial services
(Including their service capabilities and contact information) --------------- 219
Table 83. Representative Indian CROs offering clinical trial services
(Including their service capabilities and contact information) --------------- 228
Table 84. More examples of multinational clinical trial service CROs establishing
presences in India or forming partnerships with Indian counterparts ------- 235
Table 85. Drivers and resistors for future growth of Chinese clinical trial service

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market ------------------------------------------------------------------------------Table 86. Other factors positively driving the future growth of Chinese clinical
trial service market ----------------------------------------------------------------Table 87. Forecasted future growth of Chinese clinical trial service market ---------Table 88. Growth drivers of Indian clinical trial service market -----------------------Table 89. Forecasted future growth of Indian clinical trial service market -----------Table 90. Forecasted future growth of global clinical trial service market -----------Table 91. Comparison of service scope between traditional bioanalysis and
modern bioanalysis ---------------------------------------------------------------Table 92. Bioanalytical services currently available in China --------------------------Table 93. Representative Chinese CROs providing bioanalytical services
(Including their service capabilities and contact information) --------------Table 94. Bioanalytical services currently available in India ---------------------------Table 95. Representative Indian CROs providing bioanalytical services
(Including their service capabilities and contact information) --------------Table 96. Common goals of major pharma companies in China and India -----------Table 97. Comparison of technical workforces in pharma-related industries
between China and India ---------------------------------------------------------Table 98. Comparison of current labor and material costs in pharmaceutical
industry between China and India ----------------------------------------------Table 99. Criteria to consider when outsourcing to China and/or India ---------------Table 100. Current shortcomings of Chinese biotech industry -------------------------Table 101. Comparison of overall capabilities of biotech industry between
China and India ------------------------------------------------------------------Table 102. Comparison of future growth drivers and resistors of biotech industry
between China and India -------------------------------------------------------Table 103. Comparison of current key innovative drug R&D forces between
China and India ------------------------------------------------------------------Table 104. Current drawbacks causing the slow development of innovative drug
R&D in India --------------------------------------------------------------------Table 105. Analysis of development path of India innovative drug R&D and
lessons China could learn from ------------------------------------------------Table 106. Analysis and comparison of long term development prospects of
innovative drug R&D between China and India ---------------------------Table 107. Hurdles for effectively conducting clinical trials in China ----------------Table 108. Analysis of causes of low operating efficiency of some multinational
CROs in emerging markets -----------------------------------------------------Table 109. Head-to-head comparison of advantages and disadvantages between
China and India in pharma-related industries --------------------------------Table 110. Comparison of drug R&D outsourcing service capabilities between
China and India ------------------------------------------------------------------Table 111. Criteria for effectively selecting an ideal service provider in China or
India -------------------------------------------------------------------------------Table 112. Analysis of best outsourcing strategies in China and India ----------------Table 113. Elements required for effectively conducting innovative drug R&D
in a country ------------------------------------------------------------------------

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Table 114. Motivations of major pharma companies R&D activities in China ------ 291
Table 115. China is ready to play important roles in global drug R&D --------------- 293
Table 116. Analysis of different investment strategies of major pharma companies
in China and India ---------------------------------------------------------------- 298
Table 117. Common growth drivers of Chinese and Indian CRO market ------------- 301
Table 118. Forecasted future growths of Chinese, Indian and global CRO markets --302
Table 119. Analysis of future development trends of Chinese and Indian CRO
industries -------------------------------------------------------------------------- 304
Table 120. Analysis of weak points in future growth of Chinese clinical trial
service market --------------------------------------------------------------------- 305
Table 121. Common challenges conducting clinical trials in China and India
(and any other emerging markets) ---------------------------------------------- 307
List of Figures
Figure 1. Changes of ranking of Chinese pharmaceutical market in global market
in past decade ------------------------------------------------------------------------ 48
Figure 2. Changes of ranking of Indian pharmaceutical market in global market in
past decade --------------------------------------------------------------------------- 49
Figure 3. An overview of current state of Chinese pharma outsourcing industry ------ 63
Figure 4. Growth trends of Chinese CRO market in past five years --------------------- 66
Figure 5. Current customer distributions of Chinese CROs ------------------------------- 67
Figure 6. An overview of current state of Indian pharma outsourcing industry -------- 68
Figure 7. Growth trends of Indian CRO market in past five years ----------------------- 71
Figure 8. Current customer distributions of Indian CROs --------------------------------- 71
Figure 9. Growth trends of global CRO market in past five years ----------------------- 72
Figure 10. Analysis of structural compositions of Chinese biotech industry ----------- 80
Figure 11. Analysis of structural compositions of Indian biotech industry ------------- 81
Figure 12. Comparison of growth trends of biologic product market between
China and India --------------------------------------------------------------------- 82
Figure 13. Growth trends of Chinese drug R&D pipelines -------------------------------- 90
Figure 14. Description of the value chain of drug discovery and development ------- 121
Figure 15. Growth trends of Chinese drug discovery outsourcing service market in
past five years --------------------------------------------------------------------- 129
Figure 16. Growth trends of Indian drug discovery outsourcing service market in
past five years --------------------------------------------------------------------- 132
Figure 17. Forecasted future growth trend of Chinese drug discovery outsourcing
market ------------------------------------------------------------------------------ 156
Figure 18. Forecasted future growth trend of global drug discovery outsourcing
market ------------------------------------------------------------------------------- 157
Figure 19. Forecasted future growth trend of Indian drug discovery outsourcing
market ------------------------------------------------------------------------------- 159
Figure 20. Forecasted market growth trends of genomics and proteomics research
services in India and China ------------------------------------------------------ 171
Figure 21. Forecasted market growth trend of global genomics and proteomics
research services ------------------------------------------------------------------- 172

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Figure 22. Forecasted market growth trend of Chinese preclinical development

and tox research services --------------------------------------------------------Figure 23. Forecasted market growth trend of global preclinical development
and tox research services -------------------------------------------------------Figure 24. Forecasted market growth trend of Indian preclinical development
and tox research services -------------------------------------------------------Figure 25. Past growth trend of Chinese clinical trial service market -----------------Figure 26. Past growth trend of Indian clinical trial service market -------------------Figure 27. Forecasted future growth trend of Chinese clinical trial service market -Figure 28. Forecasted future growth trend of Indian clinical trial service market ---Figure 29. Forecasted future growth trend of global clinical trial service market ---Figure 30. Forecasted future growth trends of Chinese and Indian CRO markets ----

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List of Case Studies

Case Study 1. Drug R&D would not have been that costly if failure rate could be
reduced ------------------------------------------------------------------------- 39
Case Study 2. More R&D-focused biotech companies adopting virtual operation
model --------------------------------------------------------------------------- 43
Case Study 3. Shantha Biotechics ------------------------------------------------------------- 83
Case Study 4. Major pharma companies licensing drug candidates to Chinese drug
companies for co-development in China ----------------------------------- 86
Case Study 5. More examples of recent licensing/co-development deals between
multinational drug companies and Chinese companies ------------------ 87
Case Study 6. Examples of Chinese R&D-focused biotech companies founded
by successful Chinese businessmen in other industries ------------------ 93
Case Study 7. Growing abundance of various funding opportunities for Chinese
biotech companies to conduct innovative drug R&D -------------------- 93
Case Study 8. Examples of international venture capital investors interested in
Chinese life science industry ------------------------------------------------- 94
Case Study 9. Major pharma companies partnering with Chinese companies on
drug R&D ----------------------------------------------------------------------- 97
Case Study 10. Multinational biotech companies conducting drug R&D in China ---- 97
Case Study 11. Multinational biotech companies acquiring Chinese drug
developers --------------------------------------------------------------------- 98
Case Study 12. More examples of multinational drug companies collaborating
with Chinese organizations on drug R&D -------------------------------- 98
Case Study 13. R&D development path of Dr. Reddys Lab ----------------------------- 99
Case Study 14. Major pharma companies collaborating with Indian companies on
drug R&D -------------------------------------------------------------------- 102
Case Study 15. Non-profit organizations partnering with Indian organizations to
conduct drug R&D in India for India ------------------------------------ 104
Case Study 16. Chinese companies focusing on mAb drugs ----------------------------- 105
Case Study 17. R&D capability of a typical Chinese biopharma company ------------ 106
Case Study 18. Examples of R&D approaches of Chinese biopharma companies
in discovering innovative biologic drugs -------------------------------- 107

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Case Study 19. Examples of Indian biopharma companies capability in

biosimilar R&D ------------------------------------------------------------- 108
Case Study 20. Long term collaboration between BMS and Syngene on drug
discovery and development ----------------------------------------------- 130
Case Study 21. Examples of major pharma companies collaborating with Chinese
organizations for natural product libraries ------------------------------ 133
Case Study 22. Analysis of current service capabilities of WuXi PharmaTech ------- 134
Case Study 23. Indian CROs partnering with multinational CROs to offer
integrated drug discovery services --------------------------------------- 139
Case Study 24. Indian CROs enhancing their service capabilities in drug discovery
by licensing technologies from companies in developed countries -- 140
Case Study 25. AstraZeneca contracting out drug discovery research to Chinese
CROs ------------------------------------------------------------------------ 145
Case Study 26. Major pharma companies outsourcing comprehensive drug
discovery research to China-based CROs ------------------------------- 146
Case Study 27. Major pharma companies showing greater interests in partnering
with Asian organizations -------------------------------------------------- 147
Case Study 28. Curis with ShangPharma To stretch the dollar value of cash
reserve by allocating part of drug R&D program to China ----------- 150
Case Study 29. More examples of small biotech companies outsourcing drug
discovery research to China ----------------------------------------------- 151
Case Study 30. Pharma companys virtual drug discovery research strategy ---------- 155
Case Study 31. Merck collaborating with BGI on biomarker and genomic research -164
Case Study 32. GVK Biosciences possessing biomarker database ---------------------- 167
Case Study 33. Examples of collaboration between Indian CROs and Western
CROs on genomics and proteomics research --------------------------- 169
Case Study 34. Multinational preclinical service CROs in China ----------------------- 188
Case Study 35. Examples of Indian CROs capabilities in preclinical development
and toxicology research services ----------------------------------------- 193
Case Study 36. Multinational CROs partnering with Indian CROs offering
preclinical research services in India ------------------------------------ 194
Case Study 37. Examples of multinational drug companies outsourcing preclinical
development and tox research to China --------------------------------- 195
Case Study 38. Examples of multinational pharma companies outsourcing
preclinical development and tox research to India -------------------- 196
Case Study 39. More examples of multinational clinical trial service CROs in
China ------------------------------------------------------------------------- 225
Case Study 40. Latest activities of Indian CROs strengthening their service
capabilities in clinical development -------------------------------------- 233
Case Study 41. Roches clinical trial outsourcing strategies in China ------------------ 237
Case Study 42. Pfizer increasing clinical trials in China --------------------------------- 238
Case Study 43. Examples of global biotech companies conducting clinical trials
in China ---------------------------------------------------------------------- 239
Case Study 44. Examples of global biotech companies conducting clinical trials
in India ------------------------------------------------------------------------ 240
Case Study 45. Strategies of Quiagen in China and India -------------------------------- 262

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Case Study 46. Analysis of impacts of fast rising labor cost in China on Chinese
pharma outsourcing industry ---------------------------------------------- 267
Case Study 47. Technical capabilities of Chinese life science industry on the rise --- 269
Case Study 48. Collaboration between Chinese biopharma companies and Indian
counterparts for development of biosimilars ---------------------------- 278
Case Study 49. India taking actions to train its clinical trial personnel ----------------- 282
Case Study 50. More major pharma deciding to move R&D centers from the
West to China --------------------------------------------------------------- 290
Case Study 51. Major pharma deciding to establish full-scale R&D centers in
China ------------------------------------------------------------------------- 291
Case Study 52. Major pharma de-risking drug R&D in China -------------------------- 293
Case Study 53. Major pharma licensing drug candidates from Chinese biotech
companies ------------------------------------------------------------------- 294
Case Study 54. Merck Serono forming close partnership with Dr. Reddys Lab
on co-development of biosimilars ----------------------------------------- 296
Case Study 55. Sign of major pharma moving R&D out of India and increasing
investments in China --------------------------------------------------------- 297

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About JZMed, Inc.

JZMed, Inc. (www.jzmedi.com) is a leading market research firm specialized in

pharmaceutical outsourcing industry. The companys primary focus is to provide
intelligence services to global pharmaceutical, biotechnology and investment companies
to help them better understand the latest development trends of the global pharmaceutical
outsourcing industry so that they are able to formulate their best strategies to tap the
resources and opportunities in the industry. So far JZMed has provided this type of
services to a variety of companies worldwide, including world top pharmaceutical and
biotechnology companies, professional outsourcing service providers and a large number
of investment companies/banks including the largest ones in the Wall Street.

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Order Information
Information about the Report:
Author: Jim J. Zhang, Ph.D.
Publisher: JZMed, Inc.
Total number of pages: 311
Date published: September 2012

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