Strategic Analysis of Clinical Trial Outsourcing to China

With the increasing amounts of clinical data required for drug regulatory approval and the fierce competition for patients in the Western countries, the cost of clinical trials continues to rise considerably. This study suggests that outsourcing clinical trials to China is an effective strategy to reduce cost and cycle time of drug development. China offers a high market potential and strong research capacity that can provide long term benefits to pharmaceutical and biotech companies. An internal analysis of the British Columbia biotech companies indicates that lack of capital limits the growth potential of these biotech companies. Outsourcing of clinical trials to China provides small biotech companies with an opportunity to effectively utilize the limited capital and maximize their growth potential. This study discusses the challenges and strategic options for small biotech companies to capitalize on the opportunity and minimize risks.