By Scott Carney
India has been the focus of medical research since the time when sunburned men with pith helmets and degrees from prestigious European medical schools came to catalog tropical illnesses.
The days of the Raj are long gone, but multinational corporations are riding high on the trend toward globalization by taking advantage of India’s educated work force and deep poverty to turn South Asia into the world’s largest clinical-testing petri dish.
The sudden influx of drug companies to India resembles the gold rush frontier, according to Sean Philpott, managing editor of The American Journal of Bioethics.
“Not only are research costs low, but there is a skilled work force to conduct the trials,” he said. In the rush to reap profits, Philpott cautions that drug companies may not be sensitive to how poverty can undermine the spirit of informed consent. “Individuals who participate in Indian clinical trials usually won’t be educated. Offering $100 may be undue enticement; they may not even realize that they are being coerced,” he said.
For decades, pharmaceutical research in India didn’t rely on clinical testing. Scientists mostly reverse-engineered drugs already developed in other countries. But in March, everything changed when India submitted to pressure from the World Trade Organization to stop the practice and implement rules that prohibit local companies from creating generic versions of patented drugs.
Now, pharmaceutical companies can rest assured they won’t lose profits to a domestic market, and India is suddenly a profitable location for performing the expensive tests required for Food and Drug Administration clearance of any drug. Though it is still too soon to tell how much the legislative change has boosted drug development, observers say the number of studies conducted by multinational drug companies has sharply increased since March.
Given the rising cost of drug research in the United States and Europe, more and more drug companies are conducting clinical trials in developing countries where government oversight is more lax and research can be done for a fraction of the cost. According to a 2004 study by Rabo India Finance, a subsidiary of the Netherlands-based Rabo Bank, clinical trials account for more than 40 percent of drug-development costs. The study also found that performing the studies in India can bring the price down by about 60 percent.
By 2010, total spending on outsourcing clinical trials to India could top $2 billion, according to Ashish Singh, vice president of Bain & Co., a consulting firm that reports on the health-care industry.