Global Healthcare Contract Research Organization (CRO) Market to 2024 - Patent Cliff & Increasing Mergers and Collaborations Driving Market Growth

DUBLIN, Oct. 22, 2018 /PRNewswire/ --

The "Healthcare Contract Research Organization (CRO) Market Size, Share & Trends Analysis Report By Type (Drug Discovery, Pre-Clinical, Clinical), By Service, By Region, And Segment Forecasts, 2018 - 2024" report has been added to ResearchAndMarkets.com's offering.

The global healthcare contract research organization (CRO) market is expected to reach USD 51.3 billion by 2024

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).

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 nave 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.

Key Topics Covered:

Chapter 1 Methodology and Scope

Chapter 2 Executive Summary

Chapter 3 Healthcare Contract Research Organization (CRO) Industry Outlook
3.1 Market Segmentation
3.2 Market Size and Growth Prospects, 2014 - 2024
3.3 Healthcare Contract Research Organization (CRO) Market Dynamics
3.3.1 Market Driver Analysis
3.3.1.1 Patent cliff
3.3.1.2 Increasing mergers and collaborations
3.3.1.3 Increasing adoption of advanced technologies
3.3.1.4 Increasing outsourcing of R&D Activities
3.3.1.5 Developing countries providing favorable environment for clinical trials
3.3.2 Market Restraint Analysis
3.3.2.1 Quality issues of CRO services
3.3.2.2 Intellectual property rights issues
3.4 Key Opportunities Prioritized
3.5 Industry Analysis Porter's
3.6 Healthcare Contract Research Organization (CRO) Market Share, 2016
3.7 Healthcare Contract Research Organization (CRO) PESTEL Analysis
3.8 Competitive landscape
3.9 Healthcare CRO Market: Qualitative Analysis of Models
3.9.1 Transactional Relationships
3.9.2 Functional Service Providers
3.9.3 Alliances

Chapter 4 Healthcare Contract Research Organization (CRO) Market Outlook by Type
4.1 Healthcare Contract Research Organization (CRO) Revenue Share, By Type, 2016 & 2024
4.2 Drug Discovery
4.2.1 Drug Discovery Market, 2014 - 2024 (USD Million)
4.2.2 Target Validation
4.2.3 Lead Identification
4.2.4 Lead Optimization
4.3 Pre-Clinical
4.3.1 Pre-Clinical Market, 2014 - 2024 (USD Million)
4.4 Clinical
4.4.1 Clinical Market, 2014 - 2024 (USD Million)
4.4.2 Phase I Trial Services
4.4.3 Phase II Trial Services
4.4.4 Phase III Trial Services
4.4.5 Phase IV Trial Services

Chapter 5 Healthcare Contract Research Organization (CRO) Market Outlook by Service
5.1 Healthcare Contract Research Organization (CRO) Revenue Share, by Service, 2016 & 2024
5.2 Competitive landscape- Competitor share by Services
5.3 Project Management/Clinical Supply Management
5.4 Data Management
5.5 Regulatory/Medical Affairs Outsourcing
5.6 Medical Writing Outsourcing
5.7 Clinical Monitoring Outsourcing
5.8 Quality Management/ Assurance Outsourcing
5.9 Bio-statistics
5.10 Investigator Payments Outsourcing
5.11 Laboratory Outsourcing
5.12 Patient and Site Recruitment Outsourcing
5.13 Technology Outsourcing
5.14 Others

Chapter 6 Healthcare Contract Research Organization (CRO), Regional Outlook

Chapter 7 Competitive Landscape

• Quintiles
• Covance
• Pharmaceutical Product Development, LLC (PPD)
• Parexel
• Charles River Laboratories (CRL)
• ICON, Plc
• Medidata Solutions
• inVentiv Health
• Theorem Clinical research

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