• The industry continues to struggle with the necessity of looking to increasingly complex and poorly understood biological targets and mechanisms, resulting in increased costs and decreased productivity
• China currently enjoys a research cost advantage of between 30% and 50% relative to the West. Although this cost advantage will shrink over time, CHA forecasts that it will remain between 25% and 30% at least through 2012 (Globalization of Drug Development: China, CHA, 2006).
• The rapidly emerging biomarker and translational research capabilities in emerging regions such as China promise to overcome many of these challenges, enabling truly cost-effective and practical biomarker identification and validation and translational research opportunities
• Although China-based firms and laboratories have made considerable progress in modernizing their research capabilities in recent years, the degree of current capability varies widely among both institutions and across regions. There remains a considerable “capability gap” between the first- and second-tier China-based research facilities, and the ability to confidently select only the most capable firms will be critical to any project’s success.
• Both the Chinese government and private enterprises have made substantial investments in pharmaceutical research facilities and capabilities in the last three years. Although most are not yet capable of long-term GLP-compliant studies, many are capable of the shorter-term GLP-like efforts well suited to preclinical biomarker and translational research activities.
• Increasing emphasis is being placed by China-based firms on modernizing their animal husbandry and technology (e.g., imaging) capabilities, and major US- and EU-based technology provider firms (such as Applied Biosystems) are making major infrastructure investments in China in support of these efforts.

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