|
|
 |
|
Viewing report
|
|
|
|
Global CRO Spending Trends
Frost & Sullivan, June 2007, Pages: 28
This Frost & Sullivan research service titled Global CRO Spending Trends provides detailed revenue forecasts for the CRO markets and key trends in R&D spending and clinical trials. The analysis is available through our Pharmaceuticals and Biotechnology Growth Partnership Service program. With this program, clients receive industry-leading market research such as this, along with technical and econometric data and many interactive features including Analyst Inquiry Time and Client Councils.
Lack of Infrastructure amongst Biotechnology Companies Key Reason for Outsourcing
Biotechnology R&D spending growth has been consistently exceeding pharmaceutical R&D spending growth and is likely to be a key driver for contract research organizations (CROs). Biotechnology companies currently account for more than half of all molecules in development, but lack a strong development infrastructure compared to their pharmaceutical counterparts. This is one of the most compelling reasons driving research outsourcing to CROs. Additionally, cost pressures pose a constant challenge to both pharmaceuticals and biotechnology companies, and outsourcing to CROs enables them to convert fixed costs related to building and maintaining facilities into variable costs.
'CRO revenues are growing rapidly in line with R&D spending, signifying an increasing shift towards outsourced services,' notes the analyst of this research service. 'The future outlook for CROs remains healthy, driven by robust demand for services across tiers and strong requests for proposal (RFP) from pharmaceuticals and biotechnology companies.' With the patent expiry of major blockbuster products and significant competition from biotechnology and specialty pharmaceuticals, ‘Big Pharma’ companies are increasing their investment in R&D to strengthen pipelines. A growing number of partnerships amongst pharmaceuticals and biotechnology companies is also expected to lead to greater CRO outsourcing.
CROs Look to Emerging Markets for Future Growth Opportunities
CROs are increasingly looking at emerging markets as drivers of future growth. Geographic outsourcing to lower-cost locations is a rising trend and regions such as eastern Europe, South Africa, India, China and Latin America stand to benefit from higher outsourcing volumes. The diversity amongst emerging regions such as India, China and eastern Europe results in complexity in handling the data generated from trials. This is likely to considerably boost demand for functional services such as data management, logistics, translation, regulatory and consulting services, which are set to experience significant growth.
Asia Pacific as a whole is witnessing a rapid growth of R&D spending, driven by increasing globalization of the pharmaceuticals and biotechnology markets and strong cost advantages. North America continues to dominate R&D spending with the largest share; however, the percent share of clinical trials conducted in this region is likely to decrease marginally despite overall growth in volumes of trials. 'This signifies the increasing penetration of CROs as well as the emergence of newer markets as hotspots for clinical trials and other areas of outsourcing services,' says the analyst.
Customers who bought this item also bought
The CRO Market Outlook: Emerging Markets, Leading Players and Future Trends
Contract Research Outsourcing (CRO) - A Global Update of Market Trends & Opportunities
Central and Eastern Europe: Outsourcing Trends and Growth Opportunities in Clinical Trials
Outsourcing Clinical Trials: A Global Analytical Guide and Comparative Analysis of International Destinations, with Location Attractiveness Index
A Guide to Evaluating and Choosing CROs
Guide to Pharmaceutical Outsourcing in China: A Handbook for Pharmaceutical and Biotechnology Companies Planning to Outsource to China
Clinical Trials in India
Biotechnology in India
Industry Insight Clinical Trials in India
European E-Clinical Trials Markets
Pharmaceutical Outsourcing Strategies: Market Expansion, Offshoring and Strategic Management in the CRO and CMO Marketplace
State of the Clinical Trials Industry, 2009
|
|
|
|
