As global pharmaceutical companies feel the pressure to produce innovative drugs at reduced costs with shorter product life cycles and various regulatory challenges in the West,they are increasingly turning to opportunities in low-cost Asian countries such as India and China.Alliances with local companies,contractual outsourcing arrangements and establishment of local subsidiaries enable these enterprises to access openings in both countries,especially in the area of pharmaceutical research hnd development (R&D).While cost benefit seems to be the primary reason,access to capabilities (human,process,infrastructure) and the strategic benefits of freeing their own internal resources,improving flexibility,access to new markets emerge as other important reasons.The deals have ranged from early Discovery through Preclinical to Manufacturing and have been in all sizes and areas.