Outsourcing Biopharma R&D to India Biohealthcare Publishing Series on Pharma, Biotech and Biosciences: Science, Technology and Business Volumes in the Series 1. Clinical Research in Asia. U. Sahoo 13. Patently Innovative: How (ISBN 9781907568008) Pharmaceutical Firms Use Emerging Patent Law to Extend Monopolies 2. Outsourcing Biopharma R&D to on Blockbuster Drugs. R. Bouchard India. P. R. Chowdhury (ISBN 9781907568121) (ISBN 9781907568084) 14. Therapeutic Antibody Engineering. 3. Practical Leadership for W. R. Strohl and L. M. Strohl Biopharmaceutical Executives. (ISBN 9781907568374) J. Chin (ISBN 9781907568060) 15. Ultrafi ltration for Bioprocessing. H. Lutz 4. A Biotech Manager’s Handbook. (ISBN 9781907568466) M. O’Neill (ed.) (ISBN 9781907568145) 16. Therapeutic Risk Management of Medicines. A. K. Banerjee 5. RNA Interference. (ISBN 9781907568480) T. Novobrantseva et al. (ISBN 9781907568169) 17. 21st Century Quality Management and Good Management Practices: 6. 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Q.-N. Tran (ISBN 9781907568398). Outsourcing Biopharma R&D to India Probir Roy Chowdhury Biohealthcare Publishing (Oxford) Limited Hexagon House Avenue 4 Station Lane Witney Oxford OX28 4BN, UK Tel: +44 (0) 1993 848726; Fax: +44 (0) 1865 884448 Email: [email protected] Website: www.biohealthcarepublishing.com First published in 2011 by Biohealthcare Publishing (Oxford) Limited ISBNs: 978 1 907568 08 4 (print) and 978 1 908818 01 0 (e-book) © P. R. Chowdhury, 2011 The right of P. R. Chowdhury to be identifi ed as author of this Work has been asserted by him in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. British Library Cataloguing-in-Publication Data: a catalogue record for this book is available from the British Library. All rights reserved. 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Typeset by Refi neCatch Limited, Bungay, Suffolk Printed in the UK and USA Cover design by Hutchins Creative Contents Acknowledgements xi About the author xiii 1 Biopharma outsourcing in India: its evolution 1 1.1 What is outsourcing? 1 1.2 What is R&D? 2 1.3 Organisational patterns in R&D outsourcing 3 1.4 R&D outsourcing in the pharmaceutical industry 3 1.5 India as the emerging hub of R&D outsourcing in the pharmaceutical industry 4 1.6 Outsourcing models prevalent in India 4 1.7 Key issues involved in outsourcing 8 2 India’s core competitive advantage in R&D in the biopharma sector: the impetus for outsourcing 17 2.1 Introduction 17 2.2 Cost competitiveness 18 2.3 Resources and skill 20 2.4 The role of the government 22 2.5 Conclusion 25 viii Contents 3 Different modes of outsourcing biopharma R&D to India 29 3.1 Indian companies involved in outsourcing activities 31 3.2 Contract research services 32 3.3 Contract manufacturing organisations 33 3.4 Drug substance manufacturing 34 3.5 Drug product manufacturing 35 3.6 Process development 35 3.7 Analytical methods and characterisation 35 3.8 Business models for contract manufacturing organisations 35 3.9 Insights into outsourcing of product development and manufacture 37 3.10 Clinical trials 39 3.11 Advantages and disadvantages of doing clinical trials in India 40 3.12 Active pharmaceutical ingredient and technology transfer 41 3.13 Conclusions and implications 41 4 The Indian regulatory environment: a historical perspective 45 4.1 Indian Council for Medical Research 48 4.2 Central Drugs Standard Control Organisation 49 4.3 Department of Biotechnology 49 4.4 National Pharmaceutical Pricing Authority 50 4.5 Overview of the industry 51 5 Implications of the changing regulatory environment in India 57 5.1 Introduction 57 5.2 Capacity Building Programme: recent development 62 5.3 Clinical Trials Registry – India 65 Contents ix 5.4 The Indian Society for Clinical Research 67 5.5 Conclusion 67 6 Creating contracts for outsourcing in the biopharma industry 69 6.1 Biopharma outsourcing 69 6.2 Preliminary documentation 70 6.3 Drafting of the biopharma outsourcing agreement 72 6.4 Specifi c considerations in different types of agreements 73 6.5 Conclusion 79 7 Environmental, health and safety guidelines and biopharma outsourcing: an Indian perspective 81 7.1 Introduction 81 7.2 The EHS guidelines 82 7.3 EHS guidelines and India 83 7.4 Challenges faced by In dian companies in EHS compliance 86 7.5 Conclusion 87 8 Certifi cations 89 8.1 Introduction 89 8.2 Certifi cations 91 8.3 Manufacturing licence 91 8.4 Good Manufacturing Practices 92 8.5 No-Objection Certifi cate and Certifi cate of Origin 93 8.6 Certifi cate of a Pharmaceutical Product 93 8.7 Certifi cations for clinical trials 94 8.8 International regulatory certifi cations 96 8.9 Conclusion 97 x Contents 9 The need for due diligence of service providers 99 9.1 Introduction 99 9.2 Sources utilised prior to due diligence 100 9.3 Areas of due diligence 101 9.4 Due diligence process 103 9.5 Contents of the due diligence report 105 9.6 Conclusion 106 Index 109