MUMBAI: Dabur, the leader in domestic oncology drug market, is hoping to rake in more revenues from the mushrooming clinical research organisation (CRO) industry. OncQuest, the chain of diagnosis labs of the Dabur Group, signed deals with two Europe-based CROs a couple of months back for providing backup for various laboratory tests during phase II & III of clinical trials.

By conducting trials in India, the foreign companies can save as much as 50-60% against their average expenditure of $20, $50 and $100 million for phase I, II, III drug trials respectively in the US, according to studies. Clinical trials involve almost 70% of time and money of new drug development. The cost of conducting clinical trials for new drug is approximately between $200-250 million. The global clinical trials market is estimated at $ 45-billion.

According to a McKinsey report, the global clinical trial outsourcing opportunity in India is estimated to be around Rs 5,000 crore by 2010.

European and US pharmaceutical companies will spend $1.5 billion per year on clinical trials in India by 2010.

Foreseeing the vast opportunity, oncQuest is also in talks with a few international CROs having Indian operations for tie-ups. Speaking to DNA Money, Vivek Trikha, Head, oncQuest, said, “Negotiations are on with a few major players in the CRO industry and we hope to sign a few deals within a couple of months.”