"CHINA PHARMA LEAPS INTO DISCOVERY -Article Summary Since the turn of the century a recent trend of outsourcing

to less developed countries occurs within various industries. Larger drug companies are seeking ways to reduce high costs and smaller countries who lack the infrastructure to carry out complex chemistry, toxicology, and manufacturing operations find solutions in an ever the ever growing pharmaceutical industry of China. Spouting from a nation seemingly without tradition or precedent in modern drug discovery, huge labs are opening in Shanghai, Beijing, Suzhou, and other cities all around China. These CROs, or Chinese contract research organizations such as GlaxoSmithKline, Roche, Novartis, and AstroZeneca are moving far beyond the compound library work that was their bread and butter in earlier days, and are embarking on challenging projects similar to those undertaken in Western countries. Furthermore, the origins and locations of these CROs have changed since the early days of the five year life span of the Chinas pharmaceutical industry. In the past, Chinese born entrepreneurs with Western Pharmaceutical Experience started companies in Shanghai providing various chemistry services. In current times this trend has changed. Nowadays, all sorts of research companies that are not always focused exclusively on Chemistry with founders born outside of China spring up all across the country. These newer CROs experiment with risk sharing pricing models by which the CROs earn milestone payments. Among the companies favor this risk model is Chemizon. To quote Piscopio, choosing the right mix of projects, those that have a higher likelihood of success and yield milestone royalty payments is the main business risk that Chemizon faces. Despite the risk, Chemizon currently fortifies its Chinese capabilities, constructing a 40,000-sq-ft chemistry on the outskirts of Beijing, employing over 200 scientists. Similar to Chemizon, BioDuro emerges with common origins and ambitions. Like Chemizon, BioDuro sees its main business as running integrated drug research programs from early-stage discovery all the way to pharmaceutical proof of concept. Together these and other CROs are witness to the changes in which mankind discovers drugs. Whether China, India, or other less developed countries is the right place to bear witness to such developments is in question.

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1. How are new drugs discovered? 2. What is the chemistry in pharmaceutical discovery? 3. What are a few of the new drugs discovered by Chinas new industry? 4. How many outsourced companies are there? 5. Does Chinas government in anyway inhibit scientific discovery?

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Royalty payments Infrastructure Vitro and vivo studies R&D studies ADME

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