Synchron scores first buyout in Indian CRO market

Through this latest acquisition, Ahmedabad-based firm will increase its clinical capacity by adding three Phase I units to its already existing three clinical sites, boosting its bed capacity from 90 to 200. The purchase was driven by the company's ambition to match the higher demand for clinical trials in the country, originating from both US and European companies, Monika Verma, director of business development, told Outsourcing-Pharma.com. Half of the company's revenue comes from European clients, 30 per cent from the US and the remaining is generated in India, she explained. Financial details of the takeover were not disclosed. Skyrocketing costs of R&D have spurred pharma companies to offshore clinical trials to low-cost countries such as India and a recent report by analysts at McKinsey estimated that clinical research in the country will be a $1bn (€800,000m) industry by 2010. Synchron's latest move comes on the heels of a recent increase of capacity the firm carried out in its bioanalytical and data management services operations by building a new 32,000 sq. ft facility in Bangkok, Thailand. "We were also looking at building a new facility to increase our clinical capacity and Innovance's was up for sale so we grabbed the opportunity to takeover a site which was ready to function,"​ said Verma. She added that Innovance had completed the building of its units but had not started operations yet. Parexel should be rubbing its hands at the news as the US-based CRO owns a majority stake in Synchron's Bangalore clinical trial business operations - which include Phase II-III services - after it recently entered a joint venture with the India company. Parexel owns a 75 per cent stake in a recently formed entity called Parexel International Synchron into which Synchron transferred its existing clinical trial business operations. Parexel also acquired a 20 per cent equity interest in the 86-bed clinical-pharmacology business of Synchron in Ahmedabad, India. "We are now in concurrence with Parexel but they are happy with it. They have shares in our company so it definitely benefits them as it means an increase in new business,"​ said Verma. However, Parexel failed to return a phone call requesting comment. Looking forward, Synchron is showing no sign of slowing down its acquisition spree, as it is currently in the process of buying another CRO based in South India and is also planning an expansion to Hong Kong to get a chunk of the booming Chinese market.