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    Crams - 1

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    Janam Arora
    The document summarizes the contract research and manufacturing services (CRAMS) industry in pharmaceuticals. It discusses that CRAMS involves outsourcing research, manufacturing, and clinical trials activities. The global CRAMS market was estimated at $55.48 billion in 2007 and is growing. Contract research makes up $32 billion of pharmaceutical outsourcing and contract manufacturing accounts for $39 billion. India has become a top destination for outsourcing due to significantly lower costs compared to Western markets.

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    Crams - 1

    Uploaded by

    Janam Arora
    32 views28 pages
    The document summarizes the contract research and manufacturing services (CRAMS) industry in pharmaceuticals. It discusses that CRAMS involves outsourcing research, manufacturing, and clinical trials activities. The global CRAMS market was estimated at $55.48 billion in 2007 and is growing. Contract research makes up $32 billion of pharmaceutical outsourcing and contract manufacturing accounts for $39 billion. India has become a top destination for outsourcing due to significantly lower costs compared to Western markets.

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    The document summarizes the contract research and manufacturing services (CRAMS) industry in pharmaceuticals. It discusses that CRAMS involves outsourcing research, manufacturing, and clinical trials activities. The global CRAMS market was estimated at $55.48 billion in 2007 and is growing. Contract research makes up $32 billion of pharmaceutical outsourcing and contract manufacturing accounts for $39 billion. India has become a top destination for outsourcing due to significantly lower costs compared to Western markets.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    32 views28 pages

    Crams - 1

    Uploaded by

    Janam Arora
    The document summarizes the contract research and manufacturing services (CRAMS) industry in pharmaceuticals. It discusses that CRAMS involves outsourcing research, manufacturing, and clinical trials activities. The global CRAMS market was estimated at $55.48 billion in 2007 and is growing. Contract research makes up $32 billion of pharmaceutical outsourcing and contract manufacturing accounts for $39 billion. India has become a top destination for outsourcing due to significantly lower costs compared to Western markets.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 28

    CRAMS in

    Pharmaceutical Industry
    What is CRAMS?
    • CRAMS is Contract Research And
    Manufacturing Services pertaining to
    outsourcing of research and manufacturing
    activities
    • It involves custom chemical synthesis, clinical
    trials & development
    What is Contract Research?
    • CR includes preclinical & clinical trials, process
    & engineering research which is supplied to
    the innovator company at the pre-commercial
    stage of the molecule
    • CROs deal in clinical studies, monitoring,
    regulatory and compliance services for new
    drug development, evidence based research &
    combination of other products & services
    What is Contract Manufacturing?
    • CM involves supplying large quantities of the
    drug. It could involve supply of intermediates,
    APIs and formulations
    Effects of Outsourcing
    Global Outsourcing Scenario
    • Global market for Contract Research and
    Manufacturing Services (CRAMS) was
    estimated to be US$55.48 bn in 2007
    • Global Pharmaceutical Outsourcing market is
    approximately worth US$70 bn in 2009
    Global Contract Research Scenario
    Facts in drug discovery :
    • 370 Biotech medicines to treat 200 diseases are
    in the development pipeline from 144 companies
    • Of every 5,000 compounds only 5 make it to
    clinical trials.
    • In spite of a sluggish economy R&D spending is
    on the rise
    • 6.8 percent increase in the R&D spending by top
    five Pharmaceutical Companies
    • Contract Research market US$32 bn, growing
    at a CAGR of 13.8% in 2009
    • Represents a significant 23 percent of the total
    Global R&D expenditure currently being
    outsourced
    • Expected to grow to US$ 45-47 bn by 2012
    Source: Goldman Sachs
    Global Contract Manufacturing Scenario

    • Worth US$39 bn accounting for the major


    share (approximately 68%) of the Total Global
    Pharmaceutical Outsourcing market in 2009
    Reasons behind outsourcing
    • Costly regulatory barriers
    • Rising cost pressures
    • Labor cost differences
    • Long time taken to bring the drug into the
    market
    CONTRACT PHARMA OUTSOURCING SURVEY • May 2008
    Reasons for Outsourcing by the
    pharmaceutical companies

    Other reasons like:


    a.Resources not available internally
    b.Data management expertise
    c.Financial comparison (in-house vs. outside)
    Indian Pharmaceutical Market
    • India is among the fastest growing
    pharmaceutical markets in the world
    • The domestic pharmaceutical market recorded
    sales of US$ 15 billion in 2009, grew by 17.5%
    over the previous year
    • Pharma sector has witnessed an upswing in the
    revenues from service segment, due to the
    increase in outsourcing of Contract Research &
    Manufacturing Services (CRAMS) to India
    • Indian pharmaceutical offshoring industry is set to
    become a $2.5 billion opportunity by 2012, growing at a
    CAGR of 37.6% - by the management consulting firm
    Zinnov
    • Out of the projected $2.5 billion market by 2012, contract
    manufacturing accounts for the maximum share as the
    total manufacturing outsourcing business in India will
    cross $900 million by 2010 followed by clinical trials which
    are growing at the compound annual growth rate of 31
    per cent and are set to become $608 million industry by
    2012.
    India’s Edge
    Basic Production Cost in India up to 50% lower than in the US
    • 30 – 50% lower depreciation
    – FDA approved plants can be constructed in India for 30 – 50% lower costs
    – Higher utilization of equipment due to improved processes
    • 85-90% manpower cost savings
    – Labor costs in India typically 10-15 % of the cost in the USA
    – Savings applicable across all hierarchal levels (e.g., operators, research
    scientists, etc)
    – Improved, more efficient processes contribute to lower labor costs per unit
    • 40-50% savings in raw materials
    – Bulk drugs can be manufactured in house at 40-50% of ethical’s cost
    – Excipients and intermediates sourced locally at 20-30% lower costs
    – Most other raw materials can be sourced
    Source: OPPI – Adapted from Monitor Group, Study on Outsourcing Opportunities in
    Indian Pharmaceutical Industry
    Leveraging India’s Capabilities in Clinical
    Research…
    Discuss

    IS CHINA A THREAT TO INDIA?


    Thank You

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