Merck tests India’s outsourcing capabilities

22/11/2006 - US-based drug maker Merck, has agreed to outsource some of its preclinical trial work to an Indian-based company, marking the first time the pharma giant has used an Indian company to conduct drug research.

The deal comes at a time when western pharmaceutical companies are increasingly shifting drug research and clinical trials to India to cut costs. India's heterogeneous population and new patent laws have added to the trend.

While pharma majors Roche, Pfizer and Eli Lilly have all announced plans recently to set up research units in China, Merck's agreement could be seen as a first step in testing the waters of the Asian outsourcing industry, currently experiencing major growth.

link to full article

pharmaceutical outsourcing offshoring