2. R&D expenditure off shored USUSD 2.5 Billion R&D expenditure off shored USUSD 8 Billion Amount of off shored R&D moving to India USUSD 0.125 Billion Rising R&D costs is compelling organizations in the U.S. and EU to look for new low cost R&D destinations such as India and China Amount of off shored R&D moving to China USUSD 0.375 Billion Note: 1. Chinese offshored R & D Market Size estimated as a part of Chinese Offshored Pre-Clinical Market Size Note 2: The drug discovery outsourcing market (preclinical and clinical) in China was worth USD 5.9bn in 2006, the preclinical development market was worth USD 2.5bn., the clinical development market was worth USD 3.4bn in 2006 Countries offshoring Pharma R&D Countries Providing Services
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9. India has been witnessing offshoring/ outsourcing of processes under the entire spectrum of drug development value chain Drug registration Data Management, Site Management, etc. Development Pre- clinical Phase I Phase II Phase III Product launch Manu- facture Discovery Lead generation and optimization Research Target/ Lead identification Vendor Landscape in India Commonly outsourced Complexity Level Average Good High Very High Low Marketing/ Phase IV
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12. CDM* & Bio-Statistics is a growing market in India driven largely by the robust IT talent Growth of CDM and Biostatistics Market, India (2005-2012) Market Size (in USD USD M) CAGR 21 % Drug Development Outsourced Market in India (2007) Total= USD 250 Million * Clinical Data Management
13. Indian Pharmaceutical M&S* outsourcing market Market Size (USD million) CAGR 36 % Indian Pharmaceutical M&S* outsourcing market is currently a USD 100 million market and is expected to grow at a CAGR of 36 percent till 2012 Year * Marketing and Sales
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15. The legal offshoring industry in India is predicted to grow at a CAGR of 60 percent and is expected to become around USD 600 million industry by 2011 Growth trend of legal Offshoring in India (2006 – 2011) Tapped Offshored IT Industry 11% Market Size (in USUSD Million) CAGR ~60 % Segmentation of Legal Offshoring Market, 2006 Legal Support 10% Legal Research 20% Intellectual Property Research 70%
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18. Comparison of Captive set up cost in New Jersey, the pharmaceutical hub in USA… Note: 1. The above costs are for an employee Size of 100 2. The per sq.ft assumption per employee is 150 3. The cost calculated is for the first year of operation Elements Break up of Total Cost in New Jersey USD ‘000 7000 2400 5112 1526.5 943 0 205 1879 140 25.8 19230
19. … with the Captive set up cost in Mumbai… Note: 1. The above costs are for an employee Size of 100 2. The per sq.ft assumption per employee is 150 3. The cost calculated is for the first year of operation 7000 Elements Break up of Total Cost in Mumbai USD ‘000 2400 669 643 436 243 202 186 140 157 12079
20. … reveals significant cost advantage coming in vis-à-vis New Jersey, after the operations have been scaled up to beyond 40 employees in Mumbai Note: Cumulative Total Cost is for the first five years Feasibility Analysis Total Cost in ‘000 US USD Cumulative Total Cost-Parent Captive Cumulative Total Cost-Indian Captive Employee Size
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22. … and have helped Top Pharma companies in multiple ways to expand and assess the market opportunity Vendor Evaluations Offshoring Strategy Market Engineering Peer Group Analysis Engagement Strategy Others* Others* include but are not limited to Location Analysis, Talent Analysis, amongst others Zinnov Pharma Expertise
