Source: CCTV.com
03-12-2008 14:04
Most of the big pharmaceutical firms and their products are well-known to most people. Less well-known are the contract research organizations, known as CROs, which are increasingly important in the drug development process. Pharmaceutical companies outsource research to CROs, who can help them develop drugs faster and cheaper.
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| Most of the big pharmaceutical firms and their products are well-known to most people. Less well-known are the contract research organizations, known as CROs, which are increasingly important in the drug development process. |
Tune in tomorrow for the next segment in our BizChina 360 series about the pharmaceutical industry in China. Traditional Chinese medicine is enjoying a revival in popularity, as both consumers and drug companies turn to it for inspiration.
Shanghai-based Wuxi Pharmatech has taken a comfortable lead among Chinese CROs in the race to what is a large potential market. According to China Pharmaceutical and Biotechnology Monthly, worldwide spend on drug development will exceed 100 billion US dollars by 2010. And a hefty 40 percent of that will be reserved for outsourcing.
Chen Shuhui, Chief Scientific Officer of Wuxi Pharmatech said "We work closely with the large pharmas and biopharmas to provide service to co-invent drugs. So this business will continue to grow. Many more company are being formed everyday."
It's no surprise why Chinese CROs are so popular. Some analysts say the cost of outsourcing to a Chinese CRO can be one-fifth the price of performing those same services in-house.
CROs have been credited with being the main driver for the fast growth of the Chinese pharmaceutical industry. And WuXi, which IPO'd on the New York Stock Exchange in August 2007, has been at the vanguard of that movement. It credits a number of factors for its rise--importantly, government support.
Chen Shuhui said "But in China, China views CRO as the critical technical, the pool for training Chinese people to become professionals. Maybe from which they could eventually, these other companies can provide more and more support, provide more technology support for Chinese company, to provide know-how, expertise, there. So the link between the western pharmaceutical industry and Chinese-grown large pharma in the future, they will be the link between."
Western-educated and trained returnees work and lead at WuXi and many of the market leaders in China's CRO industry. And according to analysts, they have provided crucial global experience and credibility for the Chinese pharmaceutical industry.
