A new study funded by the Ewing Marion Kauffman Foundation and conducted by researchers at Duke University and Harvard Law School finds that Indian and Chinese drug companies are fast developing their research capabilities, but still must partner with multinational drug makers to develop proprietary products. Among 2006 pharmaceutical patent applications, 5.5% contained at least one inventor located in India and 8.4% contained at least on inventor located in China. Based on interviews with 16 Indian and Chinese drug companies, the study concluded that few Indian or Chinese drug firms have the money or regulatory experience to pursue drug development past phase II clinical trials. In addition, the number of clinical trials in both countries remains small. According to the National Institutes of Health, of the over 56,000 clinical trials ongoing globally, only 750 and 680 are being conducted in China and India, respectively. The countries also exhibit different strengths. Chinese companies are more involved than Indian firms in segments that are lower in the value chain, including preclinical testing, manufacturing and animal testing. Indian firms are more involved in chemistry and drug discovery.

Source: Social Science Research Network