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WSJ article R+D in China to lower Drug costs

PostPosted: Tue Nov 23, 2004 2:48 pm
by Jeff
I haven't had a chance to read this yet but it looks as though it may be of interest to this group:

Drug companies going to China to lower drug development costs
Pharmaceutical companies hit by rising costs are looking to China to provide lower-cost research and development, and are finding highly educated scientists at lower pay along with vibrant and rapidly emerging biotechnology businesses. But despite advances, Western companies are not yet ready to conduct R&D from start to finish in the country, partly because of intellectual property concerns, but also because scientists still require some training in the West.

WSJ article R+D in China to lower Drug costs

PostPosted: Tue Nov 23, 2004 3:31 pm
by Dave Jensen
Thanks Jeff . . . I want to find and read this article. It is a great concern to me, because it could potentially happen to our industry. While it is still at least 5-10 years away, we need to start thinking about the effect this could have on our companies and careers,

Dave

WSJ article R+D in China to lower Drug costs

PostPosted: Tue Nov 23, 2004 3:48 pm
by Jeff
Hi Dave,

This article appears in the Marketplace section of the November 22 issue of the WSJ.

Jeff

WSJ article R+D in China to lower Drug costs

PostPosted: Tue Nov 23, 2004 4:30 pm
by Don
Last week, I had the pleasure of visiting one very well funded start-up company in Taiwan. I simply stunned at the research infrastructure they had put together. The company has over 30 medicinal chemists working in very good labs, and strong biology labs and capabilities as well. Keep in mind, this was a start-up, NOT an outpost of a big pharmaceutical house (which would likely have a lot more money to put into it).

The trend towards parts of the research chain moving to China is only beginning, and will almost certainly impact big and small pharma. My guess is, it will happen in fewer than 5 years.

That said, I dont think it will significantly impact drug development costs any time soon. Most of the costs are in the trials which, for now, run primarily in the US and EU. That said, there are a number of companies setting up to do GCP trials in lower cost areas (like China) as well.

Finally, the biggest market for the drugs will remain the US (again for the time being). That means the companies will likely be centered here in the US.

D