Pharma companies going East

There's an entry today in Biopeer regarding the investments being made by multinational companies in India and China. There is no question in my mind that the continued fluid movement of capital meeting highly advanced resources can fundamentally change how drugs are discovered, developed, and marketed. I think there are four basic areas where pharma can move East:

1. Data Management - Includes storage and retrieval of raw data, interpretation of preclinical and clinical trial results, biostatistical analyses, etc.

2. Technology Sourcing - Areas of research (e.g., tuberculosis research in India) which may lead to new drug candidates.

3. Clinical Trials - Actual performance of clinical trials in India and China.

4. Commercial Infrastructure - As these economies continue to develop, they will become critical markets for approved drugs.

One possible trend emerging is the idea of start up biotech and pharma companies establishing corporate offices here in the US, but establishing strategic R&D relationships in India and China. IP/Patent and communications (really, management) issues aside, these types of companies can leverage their capital by enabling substantially larger numbers of people on projects, potentially accelerating development and quickening the time to exit for investors. It's an important model, and one which savvy investors should note.

Comments

[Tris Hussey]

Thanks for the ping! Hope you like the stuff you're reading.