Low development costs make China attractive for pharma outsourcing

China remains an attractive target for pharmaceutical research and manufacturing, and major players from around the world are flocking to benefit from cut-price production, according to a new report added to the offering of Research and Markets.

The new report states that China is an attractive option for pharmaceutical outsourcing, as drug development costs are around 20% less than in the West, and it takes less development time. Several multinational players are outsourcing to China and cutting jobs in Western regions, in order to offset financial losses from the impending patent cliff.

The Chinese boasted the third largest pharmaceutical market in the world in 2011, with an estimated value of about $64 billion, and the country also represents the world's largest exporter of goods. The Chinese pharmaceutical market is currently highly fragmented, but consolidation is increasingly being sought among domestic players.