India can be global outsourcing hub for drug discovery process
Even as the biotechnology industry is facing different kinds of regulatory obstacles, there seems to be a ray of hope for the country to become an outsourcing destination in drug discovery processes. There has been a good demand, especially for the bioinformatics sector which has a role in all aspects of the drug discovery value chain.

In terms of global market size, the bioinformatics software is estimated to be between $300-500 million and an average R&D spend by the pharma biotech companies would be about $50 billion in the years to come. "By developing expertise in bioinformatics, India can be a global outsourcing destination for drug discovery," says Dr M Vidyasagar, executive vice president of Tata Consultancy Services (TCS), Hyderabad.

The skill set of India is fast catching up and there is a greater willingness to outsource to India, he feels. "Unlike IT, bioinformatics is more vertical and requires a longer training, and the study is more about biology and less on informatics", he says. The IT outsourcing model would not work in drug discovery and there was very little incentives for developing an outsourcing model, he said. Hence, it is necessary to have a risk and reward sharing costing models, and regulations need to be driven by marketplace realities and not ideologies. The areas of interest for outsourcing are discovery, pre clinical studies, clinical trials and post approval activities. The role of bioinformatics in the discovery process includes target identification, target validation, lead identification and optimisation.

"Indian industry is waiting for the hurdles in intellectual property related and patent issues (IPR) to be cleared to capture a major share of the international market through the outsourcing model", he said.

Outsourcing for genomics, protemoics, apart from various rational drug-designing models are the big 'catch areas', which Indian companies see as sunrise areas to cash in on through projects from global companies, which are looking at outsourcing from Indian companies.