By Prabhu Ram   

November 11, 2011 | Guest Commentary | A new survey of contract research trends in Asia Pacific shows mostly small-to-medium contracts in Phase III focused on oncology.   

The survey was conducted by CyberMedia Research (CMR), which is based in New Dehli, and commissioned by BioSpectrum, a biotechnology journal. 37 CROs answered a combination of quantitative and qualitative questionnaires administered through email and direct telephone interviews. Survey respondents were based in India, China, Malaysia, Singapore, Taiwan, South Korea, Australia, Ireland, Scotland, and North America, but surveys focused on questions about contract clinical research conducted in Asia. 66% of respondents came from full-service CROs, while the remainder were from niche firms.  

Asia Pacific is emerging as a globally-recognized clinical hub because of its R&D expertise, skilled manpower, vast patient population, and significant cost advantages. The biopharma industry is increasingly looking toward Asia Pacific for R&D outsourcing and the region’s economies have invested in supporting the industry through dedicated infrastructure. CROs in the region, though small and medium-sized, have taken up large projects spanning the entire value chain from lead identification through lead optimisation and beyond.  

CMR found that the CRO industry in Asia Pacific is expanding rapidly, parallel to growth in the pharmaceutical sector. Powerhouses like China, India and Korea, as well as smaller markets like Malaysia and Singapore are driving this growth. The survey points to radical changes to the business models and strategies for outsourcing firms, and points to an exciting phase of growth ahead. The level of outsourcing is set to increase, and strategic partnerships are likely to overshadow the transactional project-to-project approach that has been the norm.   

Most contracts in Asia Pacific are fairly small reflecting the smaller CROs in the region and their limited resources. Over 81% of the CROs operating in Asia Pacific have received an order worth $1-10m; 10% of the survey respondents indicated that they have received orders in the $11-25m range, while 3% of respondents have indicated contract in the $26-50m range. Interestingly, 6% of our survey respondents indicated that they receive contracts in the $101-200m category.   

According to respondents, the top five focused therapeutic specializations include oncology, cardiovascular diseases, dermatology, neurology, and respiratory. For biopharma, oncology continues to emerge as a key growth segment and the Asia Pacific region—with its vast patient pool, lower costs and rapidly developing expertise—is an attractive destination for the development of their cancer therapies. Other major therapeutic areas of focus for CROs include metabolic diseases, infectious diseases, pain management, hematology, anti-infection therapies, rheumatology, inflammation, and ophthalmology. Across all areas, India and China are the hotspots for patient recruitment and clinical trials.  

Most respondents (83%) felt that the market for full-service and niche CROs would grow over the next three years. Only 6% felt that the market opportunities would decrease over the next 3 years. Our survey respondents indicated many different factors for their assessment and confidence in increased market opportunities including current global economic realities, cost pressures for sponsors, growing regulatory burdens, the daunting challenges in operating in the West, marketplace globalization, and significant increase in outsourcing levels.   

Most projects tend to be Phase III clinical trials, though a few niche CRO firms operate in Phase I and preclinical research, while others span the developmental pipeline. The key considerations for sponsors as perceived by CROS include quality and reliability, pricing, regulatory compliance, and productivity, in that order.   

The most important priority for 47% of our survey respondents is client expansion.  This is followed by revenue growth, product development and geographic expansion.  

Prabhu Ram is General Manager-Research and Consulting, and heads the Healthcare Research and Advisory Practice at CyberMedia Research (CMR) in New Delhi. Email:pram@cmrindia.com