Outsourcing Biopharma R&D to India

The Indian biotechnology sector has taken shape through a number of scattered and sporadic academic and industrial initiatives over the last two decades. During the financial year 2005-06, the Indian biotechnology industry grew by 37.4% and registered a total turnover of US$1.45 bn. Total investment also increased by 35.8% to reach over US$ 360 mil. An Ernst & Young report identified 96 exclusive enterprises as biotechnology companies making the Indian biotech sector the 3rd largest in the Asian region after Australia and China. It has the potential to generate revenues of $5 bn. and a million jobs by 2010. The trend of outsourcing to India for research and development is catching on fast. Over the last decade, worldwide pharmaceutical and biotechnology companies have made India their choice for a research destination. Initially R&D was inclined more towards developing products for the Indian market within the country. This led to several multinational companies opening up production plants in India, primarily due to the globalization of the Indian economy and offshoring jobs to India. Alongside, several global pharma-biotech majors ascertained large market requirements within the country and capitalized the advantage of serving Indian customers. Strategies were devised to optimize operational expenses with the setting up of on-site R&D to develop products for local requirements. In view of this, this book seeks to explore various nuances of the outsourcing sector with respect to biopharma in India.