The CRO Market Outlook: Emerging Markets, Leading Players and Future Trends
Scripp Business Insights, August 2009, Pages: 167
Rising costs and falling productivity, among other trends are driving pharmaceutical companies to outsource an increasing range of functions to CROs in search of time and cost savings. This produced strong double-digit growth in the sector between 2003 and 2008. However, amongst other resistors, the financial crisis resulted in reduced funding available for biotech companies. This fully updated CRO Market Outlook assesses the market drivers and resistors and predicts the effects of these. The report analyzes the overarching trends in the industry; examines which regions are set to see growth in CRO activity; evaluates the leading CROs; and outlines the future of the industry. The report provides insight into conditions into seven emerging regions including China, India and Latin America. It highlights the evolving business and relationship models between CROs and sponsor companies and enables optimal outsourcing strategy.
Key features of this report
- Identifies and analyses the most recent trends and issues in outsourcing clinical R&D
- Describes where clinical trials will be conducted in the future
- Explores the complexities and the costs of outsourcing R&D to different world regions
- Profiles the major international CRO players
- Provides a detailed assessment of the current CRO market including market share information and the size/growth of R&D spending
- Focuses on emerging CRO markets
- Highlights evolving strategies for working with CROs
- Examines existing and future CRO business models
Key findings from this report
- The total CRO market size is estimated at $20bn in 2008 and expected to grow at an annual rate of 8.5% to reach $35bn through 2015. The market is highly fragmented and the number of CROs worldwide has reached over 1,100 despite continued consolidation.
- CROs provide substantial global capacity to drug developers and have become a critical contributor to clinical trial activity. Clinical trials conducted by CROs are completed up to 30% more quickly than those conducted in-house by pharma companies.
- Of the large, global contract research providers, Quintiles is market leader, with 15% of the global market share, followed by Covance and PPD. The five largest CROs have increased their market share and now hold 55% of the total market.
- The leading CROs are commodity full service providers operating on a global scale. They act as one-stop shops for all services, from preclinical through marketing.
- The number of clinical studies conducted in Asia, Central and Eastern Europe and Latin America is constantly rising. India and China are the future outsourcing destinations of choice.
- CROs and pharmaceutical companies are turning to strategic partnerships to gain a competitive edge in the global business environment.
The CRO Market Outlook to 2
Executive Summary
The global contract research organization market
CRO market analysis
Established regions in the global CRO market
Emerging regions in the global CRO market
Leading players in the global CRO market
The future of contract research
Chapter 1 The global contract research organization market
Summary
Introduction
The CRO contribution to drug development
Market overview
Key market drivers
Key market restraints
Conclusions and key findings
Overview of the global CRO market
Total revenue forecasts
Global R&D expenditure and CRO market size
Global clinical development outsourcing
The contribution of CRO to drug development
Current market drivers
Growth of R&D expenditure from biotech and pharma
Cost pressures encourage R&D outsourcing
Long term growth and R&D expenditure of biotechnology companies
Growing regulatory burden and safety concerns
US
EU
Patient recruitment
Increasing number of products in development
The development of biomarkers
Current market restraints
Near term reductions in biotech R&D spending
Growing competition and customer consolidation
New financial realities alter biopharmaceutical outsourcing landscape
Shortage of clinical research personnel
Electronic data capture: a threat to CRO revenue
Key market trends
Globalization
EDC evolution
Strategic alliances
Chapter 2 CRO market analysis
Summary
Introduction
Market conditions
Competitive analysis
Market share analysis
Competitive dynamics
Academic medical centers
Site management organizations
Laboratory analytical services
Non-CRO niche service providers
Conclusion
CRO service models
Introduction
The full service model
SWOT analysis
The niche model
SWOT analysis
Industry strategies
Consolidation: Mergers & acquisitions in the CRO industry
Expanding the continuum of services: vertical integration
Forward integration
Backward integration
Industry challenges
Consolidation within the CRO industry: a threat to close customer relationships
Strategic outsourcing: demonstrating clear value to clients
Co-development: sharing the risk
Chapter 3 Established regions in the global CRO market
Summary
Introduction
The US CRO market
Overview
Drivers of the US CRO market
Challenges of the US CRO market
Competitive dynamics
The CRO market in Western Europe
Overview
Infrastructure and local regulations
Drivers of the CRO market in Western Europe
Challenges of the CRO market in Western Europe
Competitive dynamics
Chapter 4 Emerging regions in the global CRO market
Summary
Introduction
The Central and Eastern European CRO market
Overview
Infrastructure and local regulations
Benefits of outsourcing to CEE
Challenges of outsourcing to CEE
Competitive dynamics
The CRO market in China
Overview
Infrastructure and local regulations
Benefits of outsourcing to China
Challenges of outsourcing to China
Competitive dynamics
The CRO market in India
Overview
Infrastructure and local regulations
Intellectual property
Legislative reforms
Benefits of outsourcing to India
Challenges of outsourcing to India
Competitive dynamics
The CRO market in Latin America
Overview
Infrastructure and local regulations
Argentina
Brazil
Mexico
Benefits of outsourcing to Latin America
Challenges of outsourcing to Latin America
Competitive dynamics
The CRO markets in South Korea and Turkey
Overview
Infrastructure and local regulations
Benefits of outsourcing to South Korea
Challenges of outsourcing to South Korea
Benefits of outsourcing to Turkey
Challenges of outsourcing to Turkey
Competitive dynamics
Chapter 5 Leading players in the global CRO market
Summary
Introduction
The client perspective
Capabilities of leading CROs
Quintiles Transnational Corp
Company profile
Business description
Partnering collaborations and recent deals
Covance
Company profile
Business description
Partnering collaborations and recent deals
PPD Inc
Company profile
Business description
Partnering collaborations and recent deals
Charles River Laboratories
Company Profile
Business description
Partnering collaborations and recent deals
PAREXEL International
Company profile
Business description
Partnering collaborations and recent deals
ICON plc
Company profile
Business description
Partnering collaborations and recent deals
MDS Inc
Company profile
Business description
Partnering collaborations and recent deals
Kendle International
Company profile
Business description
Partnering collaborations and recent deals
PRA International
Company profile
Business description
Partnering collaborations and recent deals
PharmaNet Development Group
Company profile
Business description
Partnering collaborations and recent deals
Chapter 6 The future of contract research
Summary
Introduction
The shift towards a strategic model
Emerging markets
Phases I and IV growth activity
Electronic data capture
Biomarkers
Selected acquisitions/partnerships
Conclusion
Key findings and conclusions
Chapter 7 Appendix
Selected bibliography
Index
List of Figures
Figure 1.1: Estimated CRO market ($bn), 2003-2015e
Figure 1.2: Global development expenditure and CRO market forecast ($bn), 2008-2014e
Figure 1.3: CRO usage and number of days by which projects overrun
Figure 1.4: Global pharmaceutical R&D expenditure ($bn), 2000-2014e
Figure 1.5: Number of FDA approvals 1990-2008
Figure 1.6: Comparison of drug development cost estimates
Figure 1.7: Global biotech R&D expenditure ($bn), 2004-2012e
Figure 1.8: Number of products in development by phase 1998-2009
Figure 1.9: CRO/Sponsor relationship models
Figure 2.10: Market share of major players, 2008
Figure 2.11: Typical full service CRO model
Figure 3.12: R&D expenditures of PhRMA members and non-member companies ($bn), 1980- 2009
Figure 3.13: Overall indexed clinical trial costs by region, 2006-2008
Figure 3.14: The European CRO market – revenue forecast ($bn), 2008-2012e
Figure 3.15: Pharmaceutical R&D expenditure in Europe ($bn), 1990-2008
Figure 4.16: Geographic distribution of clinical trials, 2005 to 2009f
Figure 4.17: Clinical trial costs of European countries compared to the UK
Figure 4.18: Comparison of trial registration periods in CEE countries (days)
Figure 4.19: CRO market in China ($m), 2007-2012e
Figure 4.20: China’s capabilities across the value chain
Figure 4.21: India’s capabilities across the value chain
Figure 4.22: Number of clinical trials in Latin America, 2000-2008
Figure 4.23: Clinical trials in South Korea, 2005-2009e
Figure 5.24: Revenue growth of top public CROs in 2007-2008
Figure 5.25: Capabilities of leading CROs, 2009
Figure 6.26: Regional presence of major CROs
Figure 6.27: Attractiveness of selected countries for clinical trials
Figure 6.28: Global numbers of phase IV trials 2006-2009e
Figure 6.29: Electronic data capture market size ($m), 2006E-2012e
Figure 6.30: Clinical trials using predictive biomarkers, 2005-2009
List of Tables
Table 1.1: Functions commonly performed by CROs
Table 2.2: The global R&D outsourcing market: five major segments
Table 2.3: SWOT analysis: the full service model
Table 2.4: SWOT analysis: the niche model
Table 2.5: Key deals in the CRO sector
Table 4.6: Major CROs operating in Eastern Europe, 2009
Table 4.7: Domestic Chinese CROs
Table 4.8: Major domestic CROs operating in Latin America, 2009
Table 4.9: Selected domestic CROs in South Korea and Turkey
Table 5.10: Revenues ($m) and growth of major CROs, 2007-2008
- Charles River
- Covance
- Icon
- Kendle
- MDS
- Parexel
- Pharmanet
- PPD
- PRA
- Quintiles
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