The years of galling growth in the Indian CRO industry show no signs of slowing, and the market will double to reach $1 billion by 2016, Frost & Sullivan says.
Thanks to large, accessible patient populations and favorable cost curves, the market is growing 11% to 13% annually, set to double its current $485 million size in four years, according to Frost & Sullivan. The market research firm says India will continue to grow its share of world pharma trials and, as local CROs expand their capabilities, see a boom in studies from other sectors, like diagnostics and medical devices.
"Therapeutic areas in which research can be conducted in India are varied, and this is likely to result in more number of studies in the country," a Frost & Sullivan spokesman said.
Regulatory changes will also boost the market for Indian firms, as the Drug Controller General of India has committed to create a favorable environment, the research firm says. And the country's efforts to strengthen some enforcement laws will lend weight to local CROs' credibility.
Of course, that last word is the largest potential impediment. Indian CROs have some PR woes to work through, "the result of a number of small-scale CROs having compromised on the standard of their studies in their bid to compete," according to Frost & Sullivan. And the only answer is to keep plugging away. If Indian CROs can keep producing reliable data for high-profile clients, widespread consumer confidence will follow, according to the research firm.
- here's Frost & Sullivan's release
- read the Economic Times story