Jan 3, 2012

India - 2012: A year to strengthen the clinical research ecosystem



2011 has been a roller coaster ride for the Indian clinical research industry.

The excitement of seeing India grow in importance for the global biopharmaceutical industry and the emergence of a strong innovation-led local industry was offset by a slowdown in the regulatory environment (for a better part of the year) and media reports that painted an unfavourable image of the industry. On the positive side, these challenges galvanised the industry into action and acted as a catalyst for the industry, regulatory bodies and other key stakeholders to come together on a common platform to discuss issues important to the industry. This kind of collaborative effort augurs well for us as we go into 2012 and I am optimistic about the year ahead.

The potential for our industry in India is tremendous and presents an attractive opportunity spectrum for contract research organisations. The clinical trials industry in India was estimated at $485 million in 2010 by Frost & Sullivan and is projected to grow at 17 per cent CAGR from 2009-15, remaining the largest clinical trial market in Asia after Japan. This growth is being fuelled not just by the global majors, but also by the innovative and generic domestic companies who have witnessed rapid growth over the past three years. Global biopharma companies accounted for 90 per cent of Quintiles’ clients in Asia only three years ago but today the split between global and local clients is closer to 50:50.

As the indigenous pharma industry in Asia grows and globalises, Indian pharma companies are expected to lead the region, contributing to a significant proportion of growth of the regional market for contract research through the development of biosimilars, therapeutic equivalents, medical devices, and a growing number of NCEs and NBEs. These regional innovation efforts are underpinned by large investments in R&D during the past four to five years. some of which have already begin to yield, for the first time, new chemical entities from the region. These companies are likely to favour the home country as a location for clinical development activities.

The need for big pharma subsidiaries in India to engage in clinical research is also likely to grow as these companies focus on increasing market share in our fast-evolving market, whether through new patented product introductions or product life-cycle management initiatives. India has emerged as a key to the development of products for the prevention and treatment of high-burden tropical diseases and pandemics, and investments by global foundations and not-for-profit entities in large trials for the development of vaccines and therapeutics is expected to continue to grow rapidly. We will see more initiatives by the Indian government, not-for-profit funds and biopharma industry to develop new therapies for diseases that are endemic to India and the developing world.

A big area of growth is that of the biosimilar industry where a lot of exciting research and development is going on in India. The potential demand for biosimilars creates an enormous opportunity for biopharma companies. But unlike the development of progenitor biologics—or generic versions of chemical-based medications—biosimilar development and commercialisation is a uniquely difficult endeavour requiring precision, stepwise planning to ensure timely regulatory approval and optimal market access. Clinical development strategies must focus on patient selection and appropriate clinical endpoints, an opportunity for Contract Research Organisations (CROs) to partner with biopharma companies and help them navigate the complexities of the industry. We are already beginning to see partnerships being forged in India between international CROs and domestic pharma players in the biosim space and this will grow significantly in 2012.

Another growing opportunity for India is in data-driven healthcare services such as data management, biostatistics, medical writing and pharmacovigilance. IT capabilities and the ability to process and make sense of data via analytics are both crucial in modern clinical trials. The challenges of today’s biopharma industry are driving organisations to evaluate their product portfolios, operational delivery and resources and find smarter, faster and more cost-efficient ways to work. Most large pharma companies have either developed captive centres in India or have outsourced these services at scale, taking advantage of the highly skilled workforce and efficiencies in driving these businesses from India. The work being outsourced is moving up the value chain as customers see the incremental benefits in outsourcing these services. Customer engagement models are also changing and becoming far more strategic and transformational. 2012 will continue to see Indian’s dominance in data-driven healthcare services. Those that succeed will be organisations that are able to combine deep domain expertise with data management process expertise. More and more biopharma companies are beginning to recognise the value of this integration.

The course is not without its obstacles and the industry has had its challenges. 2011 saw some uncertainty on the regulatory front. Over the last couple of months however, we have been encouraged by the initiatives being taken to regulate the industry and bring in more checks and balances. As an early player in the industry in India, Quintiles has played a significant role in the evolution of the Indian industry towards a more robust regulatory pathway and will continue to play a role in working with regulatory authorities and industry bodies. We are therefore appreciative of steps being taken by the regulatory bodies to collaborate with and invite industry feedback on planned changes. The government’s priority to develop India as an innovation hub and encourage the growth of the domestic industry is again good for the clinical research industry.

Another challenge that we have faced and will continue to face in 2012 is the talent shortfall in the industry. Government and educational institutions need to spend more on developing career-ready educational programmes and creating greater awareness about the exciting opportunities in clinical research. This is a clear opportunity waiting to be tapped, where organised professional courses covering the end-to-end spectrum of the healthcare industry needs can be addressed. We need a “NIIT” of professional education for the healthcare services industry. The IT industry grew leaps and bounds in India, not just on the availability of raw engineering talent with the requisite analytical skills, but also because of the NIITs, Aptechs, and other private professional educational institutes that churned out high-quality professionals in large numbers.

Investigation sites and resources are areas that also need to evolve. The industry needs to work more closely with healthcare practitioners and administrators to bring about greater operational efficiencies at sites. For the future growth of the industry in India, the importance of an adherence to quality at sites cannot be undermined. Principal investigators (PIs) need to invest time in ensuring that clinical research activities are being done in accordance with standards. The strength of processes at the sites, the adoption of technology/process automation, real-time information updates and the knowledge/competency levels of site staff have to go through a marked improvement in a measurable manner. The only way this is possible is if there is a business model that emerges and invests in this much needed area of improvement.

India’s ability to become an innovation centre is dependent on a mature research eco-system and we must make a collective effort to address the shortfalls.

There must be efforts to bring better and safer healthcare to India, increase the competency levels of the Indian healthcare workforce, make India an innovation hub and grow the services revenue from India. To achieve these goals, I believe we should have a holistic five to ten year plan (created by all stakeholders including the government, industry bodies, academia, media and organisations) that focuses on a strong regulatory framework (covering both policy and governance), professional healthcare education, the promotion of a culture of innovation, effective public awareness and a positive media environment. With India’s success and focus on growth in services industries based on knowledge-based businesses, the abundant talent and government support, the prospects for the clinical research industry is promising and we are confident that the industry will continue to sustain its growth trajectory. Contributing towards better health for all, while safeguarding patients, is our focus and commitment.

In 2010, Quintiles published a white paper, ‘The New Health’ where we said that biopharma companies must deliver improved patient outcomes at a lower cost to consumers and to themselves, and be able to demonstrate that value to stakeholders across the healthcare spectrum. They can only achieve this goal by looking beyond their own teams, to create a new model for drug development that incorporates the tools, information and expertise of the constellation of stakeholders. Strategic alliances enable multiple organisations to bring their varied expertise to the table to create a robust network for drug development that will meet more effectively the needs of stakeholders on a global scale. These efforts will not just increase speed to market but will also ensure that quality, cost and value for all stakeholders remain top priorities. The New Health continues to be as relevant today as it was a year ago. I believe we will see greater efforts in India in 2012 to build and strengthen alliances across the industry ecosystem. The need is greater now, than ever before.

The clinical research industry in India is at a refuelling pit stop. And on that note, we look forward to 2012 with optimism and excitement. May the new year bode well for all of you.

Hemant Rehani, Vice President and Head — Clinical Development Services, India and Sri Lanka, Quintiles, speaks about the potential and future prospects of India's clinical research industry



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