Stabicon Lifesciences Pvt. Ltd has pumped in Rs.6 crore to install the equipment at its new facility. The expansion is part of the company's efforts to grab significant orders for contract research in India not just from stability studies and analytical services but also formulation development. The company would require to invest another Rs.4 crore taking the total investment to Rs.10 crore for the latest equipment.
Global pharma is still opting for India in contract research as competitive costs and expertise drive this business. The company is already undertaking the required stability studies, analytical services and microbial analysis for its customers in the US, UK, Canada, Europe, Middle East and CIS. This is where our new facility at the Bommasandra-Jigani Road in Bengaluru is equipped to offer these services under one-roof which would help further propel growth, Suresh Khanna, chairman, Stabicon told Pharmabiz.
Stabicon which started operations in 2010 has already been approved by Health Canada and is registered with the US Food and Drug Administration (FDA). “This gives the company the much-needed recognition as a quality service provider,” he added.
“There is a definite need to set up an independent product stability lab in India to cater to both the domestic and international market needs. With drugs going off patent, global pharma and biotech are definitely looking at India for formulation R&D services which is 60-65 per cent of the US/EU costs. The big price difference is an attraction to conduct the contract research in India. Hence our intent was to have a state-of-the-art facility in place,” said the Stabicon chief.
The facility which spans over an area of 20,000 sq. ft has 30 scientists and will increase the number to 50 in a few months.
“During our interaction with international and Indian customers, it was ascertained that patent expiry would only lead global majors to India for research support in not just pharmaceuticals for humans but also for animals, besides nutraceuticals too. The formulation lab will be a one-stop shop for contract research to provide the capabilities in oral dosage forms, liquids, ointments, creams and gels.
It is reported by analysts that the global contract research services market including clinical trials is valued at $35 billion in 2013 from the 1.8 billion in 2009. The CRO market will grow at 14 per cent between 2009–13 period. India’s contract research services without the clinical trial component is estimated at over Rs.1,000 crore.
Leading names in the space include Vimta Labs, Rubicon, STAR part of Strides Arcolab, Syngene which is a Biocon subsidiary, Neuland Labs and Semler. “The setting up of Formulation Development Centres is a trend as regulatory pressures have led to the need for systematic submission of studies on stability, analytical, pathogen and preservative efficacy testing. Based on the focus by international companies to reduce the cost of owning and maintaining large operations necessary to drive the drug development process, the thrust to outsource research will continue at a rapid pace,” said Khanna.