Hi,
Thought I will add my few cents on Clinical Research space. It can be broadly divided into two areas
1. Contract research - where the firm tries to discover new drug molecule on a contract basis. A very high value added function, that can give high returns but can have a high failure rate as well
2. Clinical trials - where a firm will carry out clinical trials ( phase I to phase IV) for a large pharma co. These trials can run upto 7-12 years.Here the business processes involved are
- Locating sites ( hospitals ) for clinical trials
- Recruitment of investigators ( doctors) and volunteers for the trials.
- Project management of clinical trials, managing the regulatory procedures
- Data management
Clinical trials are manpower intensive areas where quantum of revenue is assured, but per person revenus is lower than contract research. Cost of conducting a clinical trial can be anywhere between a few million to hundred million dollars. Thus Clinical researcg cos. have a fairly good revenue+ profitability worldwide.
Contract research as well clinical trial projects are coming to India primarily due to
1. Lower cost of conducting clinical trials ( cost is upto 30-40% lower than in West)
2. Availability of knowledgeable PHDs and science grads.
3. Availability of large patient population ( non anglo saxon ) to study effects of new drugs.
Thus going forward, it will be another IT /ITES like sunrise field for Indian companies who have well trained staff,stringent Quality focus, good market reputation and most important, US FDA approved facilities.
In terms of competition, there are many big names such as ERT, Quintiles, Covance, etc either already in India or setting up their shops. These are big multinationals, have deep pockets and tons of experience in dealing with all major multinationals as well as FDA.
From whatever I read on Vimta Labs, they are trying to enter both the areas. Thus going forward they can have a fairly good opportunities available.However they will have to deal with the competition from the above mentioned players and a few Indian cos. present.
Hope you find it useful.
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