At least half a dozen pharmaceutical majors have set up either Indian branches or a separate clinical research department in India to co-ordinate, evaluate and execute clinical trials and research programmes in India, it is learnt.

Sources said these companies include Pfizer, Novartis, GSK, Ivax and Sanofi Aventis. Twenty leading US pharma companies are planning to outsource work to India, and many of them are likely to have Indian representatives or offices to carry out the work in near future. Though most of these companies have their own Indian subsidiaries which produce and market drugs in India, the 'Department for Clinical Research' functions as independent entities and reports directly to their head offices. The department includes one or two expert technical officers and support staff. The job of the 'department' is to evaluate the Indian CROs, regulatory environment in India and to execute and co-ordinate outsourcing of clinical research and trials to Indian companies.

A senior Indian industry professional in the field of clinical trials, who returned from the US after a month long business visit, said the US companies are showing immense interest in India. "The US companies will flock India within the next few years. It seems they are more interested in China than India for investment, and in the case of outsourcing, India is the most preferred destination. Bangalore and Mumbai are known to most of them, not even Hyderabad or Chennai. They have apprehensions about the bureaucracy and regulatory environment in India. It is high time the Indian Government, in association with trade associations like CII, carry out major road shows to highlight India's strength in the US," he said.

Sources said that at least 20-30 clinical trials of the US-based companies are currently happening in India, and business worth about US $ 100 million have already come to Indian CROs so far. This is likely to increase by three times in near future. If the Indian Government allows overseas companies to conduct phase I human trials in India, it would open up a huge plethora of opportunities, they said.