Asia Pacific countries are steadily becoming the locations of choice for pharmaceutical and biotechnology companies wanting to conduct clinical trials. Lower costs, fresh and large patient pools, and services that meet global standards are some of the key factors, according to a new report from Frost & Sullivan (www.pharma&biotech.frost.com), Competing in the APAC CRO: What Pharma and Biotech Companies Want and How to Compete for Their Business.

The report estimates that the Asian CRO markets (Phase I - V) earned revenues of $1.2 billion in 2006 and estimates this to reach $2 billion in 2010.

"In the very near future, countries in Asia will see a growing number of clinical trials conducted and a substantial growth in the contract research outsourcing (CRO) Markets," notes Frost & Sullivan Research Analyst Sushma Rajan. "While India and China are already much talked about as hotspots for clinical trials, the other countries that will see increased activities are Taiwan, Hong Kong, and to an extent, South Korea."

However, with a growing number of CROs in Asia and increased competition, one of the challenges CROs face is to know the exact client requirements and the criteria used in selecting CRO partners. Other challenges confronting the CRO industry include the recruitment and retention of qualified clinical research associates and regulatory hurdles and bureaucracies.

"In an increasingly competitive market, it becomes imperative for CROs to build enduring customer relationships, based on a sound understanding of customer needs, priorities, and goals," says Rajan. "Customer satisfaction, thus takes on increased importance, tailored to meet the requirements of dynamic pharmaceutical and biotechnology companies."

While understanding the need of pharmaceutical and biotechnology and their CRO selection criteria is critical, delivering value to customer businesses is equally important. This requires CROs to enhance requisite capabilities in terms of a strong base of qualified personnel and services that meet global standards and support trials across all phases of clinical research.