The firm's president and CEO Dr Dale Evans said that the two new locations in Shanghai and Beijing "represent a vital component of our Asia Pacific business strategy".

"The region is a burgeoning centre of drug development that offers numerous advantages. We're committed to the marketplace here and our new offices will help us provide clients with an even greater level of support. Our presence in China is another step in our global expansion."

Indeed, Omnicare is one of many contract research organisations (CROs) now scrambling for global expansion in a bid to keep up with an industry that is spreading across the world.

The Asia Pacific, and China in particular, is emerging as a popular new location for CROs to set up.

Big pharma firms are fast investing and building their businesses in China attracted by a highly skilled, low-cost workforce and the vast potential offered by the Chinese market.

In addition, clinical trials conducted in China provide access to a large population offering a potentially huge pool of patients - a major attractive point for drug makers as it is a big factor in speeding up the time and cost of clinical studies.

For example, according to a recent report published by the UK Trade and Investment (UKTI) department, the local Chinese industry estimates that Phase I trials can be conducted in China for around 15 per cent of the equivalent cost in a Western country, while Phase II studies cost 20 per cent of the price in the west.

Omnicare has already had a business presence in China since 2001, but its new offices, which will conduct project management, clinical trial services, regulatory affairs and business development, now cement its relationship with the country.

The company's other established offices in the Asia Pacific region include Australia, India, Japan, Singapore and Taiwan.

Meanwhile, rival firms have also been making the moves on China of late. Some have gone down the same route as Omnicare and opened up their own operations in China while others have chosen to form alliances with domestic firms already operating in the country.

An example of this was announced last week when Europe's Novasecta formed an alliance with Chinese CROs Sundia Meditech and HD BioSciences to provide their R&D services to European mid-sized biopharma firms.

Moreover, home-grown Chinese firms are also gaining momentum. In November China's second largest CRO ShangPharma attracted $30m (€21m) from US private investment firm TPG.