India is emerging as a prime destination for early-stage clinical trials, offering a viable alternative for global pharmaceutical companies looking to mitigate disruptions caused by geopolitical conflicts, such as the Russia-Ukraine war. According to Sanjay Vyas, the India head of U.S.-based contract research firm Parexel, the country is well-positioned to attract clinical research investments due to its cost-effectiveness and growing expertise in the sector.
Expanding India’s Role in Clinical Research
Parexel, one of the world’s leading clinical research organizations, is gearing up to expand its workforce in India, with plans to add more than 2,000 employees over the next three to five years. The company currently employs around 6,000 professionals in the country.
India’s strategic advantage stems from its ability to accommodate clinical trials disrupted by geopolitical conflicts. Before the Russia-Ukraine war, both countries played a crucial role in global drug research. However, since the 2022 invasion, major pharmaceutical companies have faced significant challenges conducting trials in the region.
Additionally, the pharmaceutical industry’s efforts to reduce reliance on China for drug development have further positioned India as a key alternative.
Innovation Hubs and Cost Efficiency
Vyas emphasized India’s potential to develop innovation hubs for clinical research, highlighting the country’s cost advantages in drug testing and development. Speaking at the BioAsia conference in Telangana, he noted, “Because the cost of failure in India is much less than in other parts of the world.”
Parexel currently operates between 100 and 150 trial sites across India, with locations in key states such as Maharashtra, Karnataka, Telangana, and Tamil Nadu.
According to U.S.-based GrandView Research, India’s clinical trials data market is projected to reach $1.51 billion by 2025, reinforcing its growing prominence in the global pharmaceutical landscape.
Challenges to Overcome
Despite India’s potential, certain hurdles remain before it can fully establish itself as a top-tier destination for clinical trials. Vyas pointed to regulatory inconsistencies, particularly in early-stage studies, as a key barrier.
“If you don’t do phase 1 trials, the same patient will have to wait for a phase 3 (late-stage) trial for the drug to come into the market. That leads to lost time, which could have been saved if the molecule was introduced earlier,” Vyas explained.
Other challenges include limited awareness of experimental treatments among patients and healthcare providers, as well as logistical difficulties in setting up trial sites in remote areas.
India’s Growing Potential in the Global Market
As global pharmaceutical companies seek new research hubs amid shifting geopolitical and economic landscapes, India is rapidly emerging as a preferred destination for clinical trials. While regulatory improvements and increased awareness are necessary to unlock its full potential, the country’s cost advantages, skilled workforce, and expanding infrastructure position it as a strong contender in the global clinical research industry.
