The country's medical diagnostics major Dr Lal PathLabs has set up a state-of-the-art clinical trial laboratory at its headquarters in Gurgaon as part of its wider plan to cash in on the growing clinical trial market in the country.

Dr Lal PathLabs (LPL), which has been working with a number of Indian and foreign pharmaceutical companies and contract research organisations (CROs) for the last some years, has already finalised an elaborate blueprint for making it a key player in the clinical trial business in the country. Apart from its 4000 sq feet Gurgaon facility exclusively for clinical trial operations, the LPL has plans to establish another mega 65,000 sq feet laboratory at Rohini in Delhi, which is expected to be in place by 2008.

Dr Arvind Lal, chairman and managing director of Dr Lal PathLabs, pointed out that the company is increasing its focus on clinical trials for three principal reasons: outsourcing trend of global pharma companies to CROs in India, India's unique genetic diversity for running clinical trials and the expertise of LPL in conducting laboratory tests.

Shifting his attention to the global sector, Dr Lal opined that external cost pressures were acting as a major driver for the pharmaceutical outsourcing market and emergence of the CRO sector. This in turn induced a shorter timeframe for the development of new drugs and its introduction to the market. He also observed that outsourcing gives sponsor companies opportunity to convert fixed costs of maintaining the personnel, expertise and facilities like data management into variable costs.

Dr Om Manchanda, COO, LPL said, "India is a preferred clinical trial destination because of its one billion plus population plus genetically and socio-economically diverse population. Also, India has the world's largest pool of cancer and diabetic patients. Our country is also home to a wide variety of diseases ranging from tropical infections to degenerative diseases. Therefore, for pharma majors, India is s very exciting business proposition for clinical trials."

Speaking about new ventures, Dr Lal stated that PathLabs would soon be setting up a new 65,000 sq ft laboratory in Delhi. The company will develop a network of 50 laboratories across the country by March 2009. India is the current target and so the chances of an overseas venture were not on the cards but the idea couldn't be ruled out completely.

Commenting on the McKinsey report that pegs Indian CRO industry at USD 1.5 billion by 2010, Dr Lal said, that in India the total clinical trial industry is set to achieve a revenue of 6500 crore by 2010 of which 2200 crore will be contributed by pathological laboratory service segment which will account for 30 per cent of the total turnover.