CLINICAL RESEARCH

Title: “Discuss the advantages and disadvantages of outsourcing clinical research projects.”

Outsourcing is defined to be “when an organization transfers the ownership of a business process to a supplier. The key to this definition is the aspect of transfer of control.”1 In respect to clinical research projects it is defined as being when they are transferred and carried out in other countries mainly the third world. The cost of developing a pharmaceutical product in today’s day and age is very expensive and is thought to be in the range of 800 million to 1 billion dollars.2 Outsourcing has seen to be one of the ways in order to minimise the cost but even in many other markets such as in Information Technology, it is not achieved without encountered difficulties.2 Outsourcing is primarily dispersed to the developing world in countries such as India and China. As a similar drug can be tested in India at approximately a 60 per cent reduction of the cost seen in developed countries such as the United States of America (USA).3 

With the competition seen globally in the pharmaceutical industry intensifying many companies from the USA are looking to reduce the cost of their development process in manufacturing, research and development as well as clinical trials.4 Many developing countries such as India and China have a skilled labour force and one that can be paid a lower wage.4 Also many of these countries are experiencing a rise in “Gross Domestic Product (GDP) and overall wealth”4 and consequently the population is demanding advanced healthcare standards. With China’s admission into the World Trade Organization, the USA Food and Drug Administration (FDA) has aimed to improve the regulatory environment for pharmaceutical products which is “currently valued at over $3.5 billion in China.”4

Outsourcing is not a recent concept as it has been used extensively since the mid 1990’s and is on the increase.5 It is thought that by 2008 that nearly 50 % of all the drug development expenditure will be devoted to outsourcing in contrast to 4 % at the beginning of the 1990’s.5 It is estimated that there are over 1,200 organisations who are currently involved in clinical research will include the following: site management organisations (SMOs), contract research organisations (CROs), private research centres, academic medical centres and both the pharmaceutical and biotechnology industries.5 

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With outsourcing of clinical trial projects on the increase to developing countries mainly there are many advantages seen to this. Many pharmaceutical companies look to India mainly for clinical trials because the country has a diverse population and more importantly a varied gene pool.6 Primarily India’s cheap labour force and highly-skilled English speakers have attracted many pharmaceutical companies from the USA as has therefore resulted in the emergence of numerous Indian outsourcing companies.6 According to a confederation of Indian Industry study, clinical trials in India were found to produce 70 million dollars in revenue. It is predicted that this figure will ...

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