The global healthcare contract research organization (CRO) market is expected
to reach USD 51.3 billion by 2024, according to a new study by Grand View
Research Inc. Increasing drug development cost is expected to drive market
demand over the forecast period. With the increasing number of patents
expiring, increasing number of partnerships to identify biologics and new
compounds and growing R&D costs, drug maker and sponsor companies are under
pressure to replace the revenue loss specifically due to generics, which has
further made drug development more expensive and complex.
Moreover, owing to the increasing incidence rates of chronic diseases
such as cancer, Alzheimer’s and other infectious diseases in children,
government funding has increased, which have led to increasing R&D
activities. For instance, in January 2015, the U.S. announced an investment of
USD 215 million for precision medicine initiative. The investment was broken up
for NIH (USD 130 million), NCI (USD 70 million), and FDA (USD 10 million).
In addition, growing pressure on industry players to follow stringent
timelines has increased the demand for outsourcing of research activities. Even
government organizations are outsourcing their clinical trial activities to
CROs so that they can carry out the clinical trials with the required
infrastructure, expertise, and minimize cost and timelines. In 2015, the
Canadian Federal Budget made an investment of USD 1.33 billion for the Canada
Foundation for Innovation (CFI).
Full research report on healthcare contract
research organization (CRO) market analysis:
https://www.grandviewresearch.com/industry-analysis/healthcare-contract-research-outsourcing-market
https://www.grandviewresearch.com/industry-analysis/healthcare-contract-research-outsourcing-market
Further key findings from the study suggest:
·
Clinical trial services dominated the
market in 2016 owing to the fact that it comprises four elaborate phases
including human subjects. The increasing complexities in R&D trends have
raised the need for expertise, thereby shortening the time required to
commercialize the molecule.
·
In January 2016, Charles River Laboratories
International, Inc. entered into a definitive agreement to acquire WIL Research
for approximately USD 585 million. The acquisition is expected to strengthen
Charles’ ability to partner with global clients.
·
The high R&D spending in oncology has
also fueled the need for healthcare contract research outsourcing. Realizing
this demand, France-based laboratory, XenTech increased its capacity of its
animal care to 50% along with increasing collaborative research projects.
·
North America was the largest regional
market with revenue share estimated at over 40% owing to the presence of global
industries, which invest maximum of their revenue in research activities. In
addition, many academic institutes receive grants to undertake these
activities. For instance, in July 2015, the University of Toronto received USD
1.5 billion under the Medicine by Design initiative.
·
Europe was the second largest market in
2016. This is attributed to the tax benefits offered to the large and
small-scale companies to promote more contract research outsourcing activities.
The large companies can claim 30% deducible from the income of their R&D
expenditure. In case of small and medium sized enterprises, it is 225% for the
R&D expenditure.
·
Asia Pacific is the fastest growing
industry due to the reduced cost it offers in comparison to the U.S and other
developed economies. Increasing incidence rate of chronic and lifestyle
diseases such as heart disease and diabetes coupled with ease in patient
recruitment and available expertise for the clinical trials are few drivers
propelling growth of the Asian healthcare CRO market.
·
China and India are projected to witness
tremendous growth in the contract research outsourcing market owing to their
treatment naïve patient pool coupled with disease prevalence rate. Furthermore,
genetically diverse population, highly qualified English-speaking
investigators, well equipped hospitals are other opportunities offered by India
for global clinical trials.
·
In July 2014, Catalent Pharma Solutions opened
its oral formulation development lab in Japan. The laboratory, which opened in
September, also expanded its CMO manufacturing capacity in the same lab.
·
CROs are in a process of continuously
improving their portfolio by integrating services with technology. This enables
them to save more on time and deliver efficient and desired results to the
clients. In October 2015, PPD joined hand with Oracle to use its cloud
technology named Oracle Siebel CTMS.
·
In addition to offering improved services,
CROs are in the process of collaborating to promote their services at a global
level. For instance, in May 2014, ClinDatrix, Inc. collaborated with six other
CRO’s to offer services to multinational clinical trials. The collaboration
will strengthen its presence globally apart from the U.S. and Canada.
·
Major contributors are Quintiles, Covance,
Pharmaceutical Product Development, LLC (PPD), Parexel, Charles River
Laboratories (CRL), ICON plc, inVentiv Health, Medidata Solutions, and Theorem
Clinical Research. According to the US database of trials, Parexel, Quintiles
and PPD are involved in large number of collaboration with the sponsors
pertaining to clinical trials.
·
In April 2015, Pfizer selected PPD as its
third most preferred CRO. PPD has assisted Pfizer in extending its global reach
that is expected to advance Pfizer’s growing portfolio. Furthermore, in June
2015 Aeterna Zentaris selected Ergomed for phase III study to identify the
efficacy of Macrelin, a novel orally active ghrelin agonist to evaluate AGHD.
View more reports of this category by Grand View Research
at: https://www.grandviewresearch.com/industry/healthcare-it
Grand View Research has segmented the global Healthcare Contract Research
Organization (CRO) market report on the basis of type, service, and regions:
Type (Revenue, USD
Million, 2014 - 2024)
·
Drug Discovery
o Target validation
o Lead identification
o Lead optimization
·
Pre-Clinical
·
Clinical
o Phase I Trial Services
o Phase II Trial Services
o Phase III Trial Services
o Phase IV Trial Services
Service (Revenue,
USD Million, 2014 - 2024)
·
Project Management/Clinical Supply
Management
·
Data Management
·
Regulatory/Medical Affairs
·
Medical Writing
·
Clinical Monitoring
·
Quality Management/ Assurance
·
Bio-statistics
·
Investigator Payments
·
Laboratory
·
Patient and site Recruitment
·
Technology
·
Others
Regional Outlook
(Revenue, USD Million, 2014 - 2024)
·
North America
o U.S.
o Canada
·
Europe
o Germany
o UK
o France
·
Asia Pacific
o Japan
o China
o India
·
Latin America
o Brazil
o Mexico
·
Middle East & Africa
o South Africa
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Report:
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https://www.grandviewresearch.com/press-release/global-healthcare-cro-market
About Grand View Research
Grand View
Research, Inc. is a U.S. based market research and consulting company,
registered in the State of California and headquartered in San Francisco. The
company provides syndicated research reports, customized research reports, and
consulting services. To help clients make informed business decisions, we offer
market intelligence studies ensuring relevant and fact-based research across a
range of industries, from technology to chemicals, materials and healthcare.
