RALEIGH, North Carolina, Oct. 4, 2019 /PRNewswire/ -- The current global HEOR services market is growing at a steady pace, with Top pharma as well as the mid-size and specialty pharma companies outsourcing at least 75 percent of the HEOR work, according to Beroe Inc, a procurement intelligence firm. Mandatory HTA submissions, the requirement and the growing impact of real-world evidence in P&R are the key drivers behind the outsourcing of HEOR services.
Europe and North America hold the major market share in the HEOR services market, of 45% and 40% respectively as the availability of experienced market researchers and outcome research-based specialists with proven track records are high within the pharma sector. Countries, such as Russia and India, have demanded that pharmaceutical and biotechnology companies lower their product prices to government-mandated thresholds.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
Mandatory HTA submission in many countries, requirements for real-world evidence and outcome data for reimbursement are factors that are driving the growth of the HEOR services market at a global level, along with an increasing demand for showcasing the value of the drug. Lack of standardization of HTA requirements and the Pharma industry being in nascent stages of contracting in their non-core areas pose a challenge to the HEOR services market.
With greater number of regulatory agencies laying stress on value and patient outcome, patient engagement will bring in the wave disruptive innovations, which pharma have limited experience. HEOR services market is expected to be at the forefront of the adoption of disruptive technologies, like big data from EHR and EMR, big-data analytics, predictive analytics, bioinformatics, disease modeling, a next-Gen formulary with patient-driven treatments, and m-health devices. Cost-cutting within pharma is leading to increased outsourcing of these services without increasing the headcount.
Increase in the number of drugs in large pharma product pipeline and the requirement for orphan drugs to target the unmet medical needs of patients are the key factors increasing the demand to study the market for potential and effective pricing of the product
There are two kinds of novel partnerships in the industry. CROs are collaborating with data analytics service providers to provide greater real-world evidence and outcome analytics and some pharma companies directly collaborating with data analytics firms for predictive analytics and big data solutions.
Online patient communities (OPCs) are emerging as prevalent means to reach out to providers as well as patients resulting in better participation and sharing of information leading to aggregates of information, and depictions of patient data more accurately.
Suppliers are moving toward consolidation in order to expand their supply base and global reach. The consolidation drive is expected to result in two types of suppliers that can be engaged for strategic partnerships: CROs and Data and analytics players.
Global players will always have local players as stiff competition in niche markets, like France, Nordics, and Japan as in niche service lines, smaller players can compete with larger players. Key suppliers include AdRes Srl, Parexel (Heron), Covance (Medaxial), IMS Health, EPI-Q, Evidera, and RTI Health.
The research methodology adopted for the report included:
Experts with twenty years of domain experience
Interaction with buyers
Inputs from supply chain partners
The global HEOR spending by pharma is approximately $75,000–1.4 million for a developing molecule, and $150,000–$1.1 million for a branded product. There is a high level of consolidation in the HEOR market and is becoming very lucrative with diverse regulations globally. This has attracted a lot of non-core participants, like the private equity firms and data analytics company, which are acquiring niche HEOR players and providing end-to-end service.
The report also includes:
Drivers and Restraints
Porter's Five Force Analysis
Outsourcing Adoption Rate
Mergers and Acquisitions
Major suppliers-Non CRO
Industry Best Practices:
About Beroe Inc.:
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.