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Market Research Report : Indian clinical trials market in India 2012


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The Indian clinical trials market is growing at an excellent rate and currently witnessing a large number of global pharmaceutical companies outsourcing trials to contract research organizations (CROs) in India. This is largely due to the country’s lower costs and various other advantages. Moreover, many domestic pharmaceutical companies as well have increased their R&D spending for new drug development and are outsourcing clinical trials to various CROs. With this rapid increase in clinical trials outsourcing, the market is set to exhibit steady growth in future, thus providing players the opportunity to increase profitability.
The report provides a snapshot of the clinical trials market. It begins with an introduction section which briefly discusses the various stages in clinical trials. This section also discusses the various services provided by contract research organizations. This is followed by the market overview section which provides an insight into the market and highlights the market size and growth of clinical trials in the country. India’s current and projected share in the global clinical trials market has also been provided. The section also analyses the number of new trials registered in the country each year and segmentation of trials on the basis of the therapeutic area. The distribution of trials currently under progress, on the basis of the phase in which they are in, is also provided. Moreover the segmentation of trials on the basis of the sponsors has also been included in this section. The major pharmaceutical companies that are sponsoring trials in India have also been mentioned.
This is followed by an analysis of the drivers leading to growth in the market. This includes cost competitiveness, vast patient population with diverse number of diseases, increasing R&D expenditure by pharmaceutical companies, friendly regulatory environment, sound medical infrastructure and international quality standards. The main challenges to the market include shortage of research professionals, delays in trial approval, lack of data exclusivity and challenges of unethical trials. A section on government regulations in the industry has also been included. It covers the various government regulations outlining the legal and regulatory framework for conducting clinical trials in India.
The competition section provides an overview of the competitive landscape in the industry and includes a detailed profile of the major players in the market. The Porter’s Five Forces analysis for the clinical trials market is provided in this section. A summary of the major players operating in the market has also been provided in the form of a bubble chart. It also includes the list of products and services, key people, financial snapshot, key ratios and key recent developments for the major players.

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Market Research Report : Indian clinical trials market in India 2012

  1. 1. Clinical Trials Market – IndiaApril 2012
  2. 2. Executive Summary  Clinical trials market in India was valued at INR b bn in 2011 and is estimated to reach INR f bn by  2015, growing at a CAGR of x% Market  India is the ‘y’ largest clinical trials market in Region 1, following Country 2  India’s share in the global clinical trials market was u% in 2011 and will grow to v% by 2015 Drivers: Challenges: – Cost competitiveness – Shortage of research professionals – Vast patient population with diverse  – Delays in trial approval Drivers &  number of diseases – Lack of data exclusivity – Increasing R&D expenditure by  – Challenges of unethical trialsChallenges pharmaceutical companies – Friendly regulatory environment – Sound medical infrastructure – International quality standards  Clinical trial can be initiated only after approval from Association 1 and are governed by Government  Scheduled ‘XX’ of Act 1Regulations  Registration of trials involving humans has been made mandatory starting in June 2009 on the  Clinical Trials Registry‐India (CTRI) website  Major Domestic Players Major Foreign Players Company 1 Company 3 Company 5 Company 7Competition Company 2 Company 4 Company 6 Company 8 CLINICAL TRIALS MARKET IN INDIA 2012.PPT 2
  3. 3. •Introduction•Market Overview•Drivers & Challenges•Government Regulations•Competition•Clinical Research Institutes•Key Developments•Strategic Recommendations•Appendix CLINICAL TRIALS MARKET IN INDIA 2012.PPT 3
  4. 4. India is emerging as a preferred destination for clinical trialsand the market is expected to show steady growthMarket Overview Market Size and Growth (Value‐wise)• Clinical trials market in India is growing at a very fast  INR bn pace and is expected to be more than double in 2015  50 f from its size in 2011 40 x% e• India is the ‘y’ largest clinical trials market in Region 1  d following Country 1 30 c• Major sponsors for clinical trials are international  b a pharmaceuticals companies with huge R&D spending 20• Many Indian and foreign pharmaceutical companies  10 have tied up with other specialist research  0 companies for development of new drugs 2010 2011 2012e 2013e 2014e 2015e• Pharma companies are leaning towards outsourcing  and concentrating on marketing without spending  time for drug discovery and manufacturing Global Pharma Companies• Internationally certified central laboratories  and  research institutes also take part in clinical trials in  Outsource  India Drug Discovery Clinical Trials India’s share in the global clinical trials  market is expected to increase from u% in  Research  Contract Research  2011 to v% in 2015 Institutions Organizations CLINICAL TRIALS MARKET IN INDIA 2012.PPT 4
  5. 5. Although the number of new trials registered in India in 2011 declined, the market will continue to grow steadilyNew Trials Registered Number of Trials Registered Each Year•Total number of trials registered in India till  400 D date is 1875 B C•Number of new trials registered in India in  300 A E 2011 had sharply declined from the number of  200 trials registered in 2010•However, the market is not expected to be  100 negatively impacted by the lower number of  new trials registered in 2011 0 2007 2011 2009 2010 2011  At present 513 clinical trial studies are being  conducted in India which is far greater than the  331 studies being conducted in 2010 and 181  Trials According to Therapeutic Areas studies being conducted in 2009 Cancer  Since trials for a single drug itself may take several  A% years, the market will continue to exhibit steady  F% CNS growth even if the number of new trials  Infectious Diseases registered declines in a particular year B% Diabetes CVD E% Others Cancer, CNS and infectious diseases are the  most popular therapeutic areas for clinical  C% trials, followed by diabetes and CVD D% CLINICAL TRIALS MARKET IN INDIA 2012.PPT 5
  6. 6. Majority of the trials conducted in India are Phase III trials and are sponsored by large pharmaceutical companiesDistribution of trials on basis of Phase Major Pharma Companies Sponsoring trials D% C% Company No. of Trials Phase I Phase II A 86 B% Phase III B 74 Phase IV C 73 Distribution has been done on the basis of  D 71 A% ongoing trials. However, some trials have not  been taken into account as information  E 64 regarding their phase is not available F 61 G 56Segmentation of trials on basis of Sponsors H 49 I 42 A% A J 32 B K 31 L 27 B% M 26 N 23 CLINICAL TRIALS MARKET IN INDIA 2012.PPT 6
  7. 7. Drivers & Challenges – Summary  Drivers Challenges Cost competitiveness Shortage of research professionals Vast patient population with diverse  Delays in trial approval number of diseases Increasing R&D expenditure by  Lack of data exclusivity pharmaceutical companies Friendly regulatory environment Challenges of unethical trials Sound medical infrastructure International quality standards CLINICAL TRIALS MARKET IN INDIA 2012.PPT 7
  8. 8. Major Private Companies – Summary Net Profit Size of the Bubble represents Total Assets in INR mn 140 130 120 g 110 100 90 h 80 f 70 60 50 40 d 30 e 20 c 10 b a 0 ‐10 Revenue 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 Company 1 Company 2 Company 3 Company 4 Company 5 Company 6 Company 7 Company 8 CLINICAL TRIALS MARKET IN INDIA 2012.PPT 8
  9. 9. Private: Domestic Company – Company 1(1/3)Company Information Offices and Centres – India Corporate AddressTel No.Fax No.WebsiteYear of IncorporationProducts and Services Head OfficeProducts/Services Regional OfficesOffers services such as Service 1, Service 2, Service 3, Service 4,  Key PeopleService 5, Service 6 Name Designation Person 1 Director Person 2 Director Person 3 Director Person 4 Director CLINICAL TRIALS MARKET IN INDIA 2012.PPT 9
  10. 10. Private: Domestic Company – Company 1(2/3)Financial Snapshot Key Ratios y‐o‐y change  Total Income Net Profit / Loss Particulars  2011 2010 2009 2008 (2011‐10) INR mn INR mn  Profitability Ratios Operating Margin 300 x y 50 v Net Margin 250 0 Profit Before Tax Margin 200 ‐50 Return on Equity u 150 ‐100 Return on Capital Employed b 100 ‐150 Return on Working Capital a Return on Assets 50 ‐200 Return on Fixed Assets 0 c d ‐250 Cost Ratios 2008 2009 2010 2011 Operating costs (% of Sales) Administration costs (% of Financial Summary  Sales) Interest costs (% of Sales)• Company incurred a net profit of INR X mn in FY 2011, as  Liquidity Ratios compared to net profit of INR Y mn in FY 2010 Current Ratio Cash Ratio• It reported total Income of  INR XX mn in FY 2011,  Leverage Ratios registering a decrease of X per cent over FY 2010 Debt to Equity Ratio Debt to Capital Ratio• Earned an operating margin of X.X per cent in FY 2011, an  Interest Coverage Ratio increase of X.X percentage points over FY 2010 Efficiency Ratios• The company reported debt to equity ratio of X.XX in FY  Fixed Asset Turnover 2011, a decrease of X.X per cent over FY 2010 Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved Decline CLINICAL TRIALS MARKET IN INDIA 2012.PPT 10
  11. 11. Private: Domestic Company – Company 1(3/3)Business Highlights Description  News • It provides clinical research services to Type 1, Type 2 and Type 3 companies • It also provides Type  1, Type 2, Type 3, Type 4, Type 5, Type 6, Type 7, Type 8 and Type 9  services • It offers clinical trial services in Therapeutic Area 1, Therapeutic Area 2, Therapeutic Area Overview 3, Therapeutic Area 4, Therapeutic Area 5, Therapeutic Area 6, Therapeutic Area 7,  Therapeutic Area 8, Therapeutic Area 9, Therapeutic Area 10, Therapeutic Area 11,  Therapeutic Area 12, Therapeutic Area 13 and Therapeutic Area 14 • Its Category 1 laboratory is accredited by the Institution 1 and its Category 2 laboratory is  accredited by the Institution 1 and Institution 2Share Holding Pattern • Company 1 is a division of Company 2 CLINICAL TRIALS MARKET IN INDIA 2012.PPT 11
  12. 12. Clinical Research Institutes (x/y) Institute Location Areas of Research • At present comprises of the basic and clinical research wings and a 50‐ Institution 1 City 1 bed hospital • Conducts research and development on cancer • Design and development of drugs, diagnostics/vaccines right from the  synthesis of compounds upto regulatory studies and clinical trials  • Undertakes contractual research work • Research activities are broadly divided into three subgroups: Institution 2 City 2  Drug discovery & development   Regulatory studies  Infrastructural support groups  • Developed a new drug to control and cure depression, the new drug  has been found to be safer that the existing anti‐depression drugs • Promotes research in the field of cancers  Institution 3 City 3 • Institute undertakes multidisciplinary studies in order to understand  the natural history, biological behavior and mechanisms of  carcinogenesis  CLINICAL TRIALS MARKET IN INDIA 2012.PPT 12
  13. 13. Thank you for the attentionThe Clinical Trials Market – India report is part of Research on India’s Healthcare Industry Series.For more detailed information or customized research requirements please contact:Phone: +91 33 4064 6215E‐Mail: sales@netscribes.comNetscribes (India) Pvt. Ltd. is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries onAbout NetscribesNetscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth objectives.Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. CLINICAL TRIALS MARKET IN INDIA 2012.PPT 13