Korean C&R Research to set up US, Thai units for global biz

C&R Research Inc., South Korea’s top contract research organization (CRO), plans to establish units in the US and Thailand this year while making its clinical data compatible with global standards to expand its overseas businesses.

“Before acquiring an overseas CRO, we have decided to foray into the US by establishing a unit there,” C&R Research CEO Yoon Moon Tae recently said. “In addition to the US, we also plan to set up a unit in Thailand this year and increase global projects.”

C&R Research aims to generate 30% of its sales from overseas projects, which currently made up about 10% of the firm's total revenue, Yoon added.

A CRO is a company that provides support to the pharmaceutical, biotechnology, and medical device industries in the form of research services outsourced on a contract basis. Such organizations often handle the regulatory approval process.

Domestic CROs in the US and Europe dominate the market, which account for 80-90% of the global pharmaceutical and bio industries, given their extensive knowledge of and experience with local regulations and conditions in the countries where most clinical trials are conducted.

C&R Research has won contracts in the West despite such competitive conditions based on their speedy work, diligence and flexibility. Its order backlogs totaled 148.3 billion won ($111.2 million) as of the end of the second quarter.

PUTS US ACQUISITION ON HOLD

C&R Research had aimed to acquire a CRO in the US with strong networks with the Food and Drug Administration (FDA) to expand its business in the world’s largest pharmaceutical and bio market. The company, however, has put these plans hold as it was hard to find such a CRO there.

“We plan to set up a US unit in cooperation with other South Korean companies,” Yoon said. “We will initially focus on direct communication with the FDA and  seek an M&A later.”

The South Korean CRO founded in 1997 is scheduled to open a unit in Thailand in October or November. The company already established units in China and Singapore, Asia’s clinical trial hubs, in 2010 and 2012, respectively.

“Clinical trials in Thailand are becoming more popular as we can recruit more patients there than in South Korea at about half the cost,” Yoon said.

Small and medium-sized biotech companies in South Korea and major pharmaceutical makers are increasingly conducting clinical trials in the Southeast Asian country, he added.

TO STANDARDIZE DATA

C&R Research has been standardizing clinical data for each disease to further expand its global business.

“Data accuracy is the most important factor for clinical trials,” Yoon said. “It is key to making clinical trials conducted at hospitals and medical centers in various countries compatible with global standards.”

The company acquired a patent for its information technology platform Imtrial to standardize clinical trial data.

“From their initial plans, we can help pharmaceutical and bio companies design clinical trials that meet international standards,” Yoon said.

Write to Jeong Min Nam at peux@hankyung.com
 
Jongwoo Cheon edited this article.