Australia's edge in early-phase clinical trials

Frost & Sullivan has presented new research into why Australia is a hub for early-phase clinical trials. Highlights from the report, due to be released next month, were presented at the DIA China 8th Annual Meeting.

The study was supported by Novotech, Australia’s largest independent clinical contract research organisation (CRO) with offices throughout Asia. As explained by Novotech Asia COO Dr John Moller, the CRO commissioned the report “to better understand how the industry was evolving in our part of the world”.

The report showed that cost, regulatory speed and flexibility and quality are the key drivers for biopharma companies selecting Australia for early-phase trials. It says Australia has a proven reputation with regulators, including the US FDA, for quality research. In addition, our tax incentive program makes it up to 60% more cost-effective to run trials here than in the US.

“This research will further inform the way we, and other CROs in Australia, communicate with sponsors from Asia and the USA on why they should consider Australia for early-phase studies,” said Dr Moller, who noted that China’s “increasingly sophisticated clinical trial infrastructure and… high incidence of chronic disease makes it a compelling choice for our EU and USA biotech and pharma clients”.

“The Chinese biotech sector is increasingly well funded, and we believe that Australia provides an excellent opportunity for Chinese companies to accelerate their development programs with rapid, high-quality and cost-effective early-stage trials,” he said.

According to the report, the Australian CRO market generated almost US$400 million in revenue in 2015. The market is expected to reach US$615 million by 2019, growing at a CAGR of 12%. Early-phase clinical trials have been growing at nearly twice this rate.