New Trends in the 2015 Global Preclinical Development Outsourcing Market

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Jul 07, 2015, 10:38 ET

DUBLIN, June 30, 2015 /PRNewswire/ --

Research and Markets (http://www.researchandmarkets.com/research/rn7b75/the_new_trends_of) has announced the addition of the "The New Trends of Global Preclinical Development Outsourcing Market" report to their offering.

The report, The New Trends of Global Preclinical Development Outsourcing Market, provides unique insights into the current development states and the future growth potentials of the global preclinical development outsourcing market. The report is designed to reveal the latest development trends in this market, including the detailed insights of the new R&D strategies of major pharma companies and R&D-focused biotech companies on preclinical development and toxicology research and their outsourcing demands. It also includes the analyses on new technologies and service models that are currently evolving. Most importantly, the report contains the in-depth analyses of all positive and negative factors that might control the future growth directions of the global preclinical development outsourcing market.

The report provides readers a complete picture of the current state of the global preclinical development and toxicology research outsourcing market and a clear insight of its future growth potential. It is a must-read book to all pharmaceutical and biotechnology companies that seek preclinical development outsourcing opportunities, the preclinical development and toxicology research-focused service providers that need to conceive their future development directions, and venture capital investors that are looking for investment opportunities in the global pharmaceutical outsourcing industry.

Key Findings of the Report:

- Today all drug companies large or small have realized that they are in a dilemma situation: The drug R&D cost has been climbing up exponentially while the output of their R&D effort measured by the number of new drugs approved each year has remained low. To solve this problem, all major pharma companies have taken radical initiatives, including restructuring their internal R&D systems, changing their R&D strategies and focuses, and meanwhile increasingly searching for available external resources. All these initiatives have resulted in two main consequences: Pursuing more externalization and more new technologies.

- To realize these goals, a new model of virtually integrated pharmaceutical operation through networked partnerships has evolved in the industry. Today increasing part of R&D work is executed through a networked partnership involving all types of outside resources, including R&D-focused biotech companies, technically savvy academic research institutions, and professional outsourcing service providers.

- As part of the lengthy process of drug discovery and development, preclinical development, including extensive in vitro pharmacological property profiling and toxicology studies, plays increasingly important roles in reducing the attrition rate for clinical development and overall drug R&D cost. To realize their goals, drug companies have been increasingly searching for new technologies that can probe the toxicity in as early R&D stages as possible so to eliminate undevelopable candidates in early stage and to shorten the time to proof-of-concept test, and seeking collaboration/partnership opportunities with such organizations that possess the desired abilities to fulfill these tasks.

- Primarily driven by drug companies' these strong desires, preclinical development has undergone dramatic changes in the recent years. New technologies and R&D methodologies, drug companies' strategies and focuses, and even new outsourcing models have been constantly evolving. For example, IND-enabling discovery research service model has become a trend. The new model combines integrated discovery research and preclinical development, and is both sought by drug companies and offered by increasing numbers of professional CROs.

- Today drug discovery CROs without in-depth preclinical development service capability gradually fall behind. On the other hand, the preclinical development service CROs without discovery and in vitro study capabilities are also increasingly losing contracts that require integrated services. The model of one without having the other gradually becomes out of date.

- Although the strong growth of the worldwide demand for preclinical development and toxicology research services just turns back very recently, whether this trend will still continue in the foreseeable future is determined by a number of factors and still remains to see.

- To further improve the productivity in their R&D, all drug companies are expected to still make changes in their R&D strategies, including their outsourcing strategies, in the near future in particular in discovery research and preclinical development.

- On the positive side, the whole industry is currently focusing on proof-of-concept study, development and incorporation of biomarkers into early stage R&D, and development of biologic drugs including biosimilars. The research in these areas is expected to lead to strong demands for preclinical development service in the foreseeable future.

- On the negative side, major pharma companies' current main focus has still been on late stage development. Their R&D budget on preclinical research has not increased as much as for other stages, besides the expected, still-tight overall R&D budget industry-wide in the following years. Moreover, as some institutional knowledge in preclinical study is still needed, drug companies may still want to keep part of their preclinical development work in house
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- Overall, although the outsourcing service demand for preclinical development may still experience fluctuations, all above situations combined together determine that this market may still experience positive growth in the near future.

- Based on our analysis, we forecast that the global preclinical development and toxicology research outsourcing market will likely experience a CAGR of 7% between 2015 and 2020 and will reach around $6.8 B by 2020. By then the outsourcing penetration in preclinical development is expected to reach about 45%.

- Within the global preclinical development outsourcing market, China is expected to play more important roles. Possessing a number of advantages, the country is considered one of the ideal places for conducting large animal-based toxicology research and preclinical development. Driven by the growing demands by the local drug companies, including both domestics and multinationals, the Chinese preclinical development outsourcing market is expected to still experience strong growth in the foreseeable future.

Key Topics Covered:

Executive Summary

Latest trends of global drug R&D outsourcing
Latest trends of global preclinical development outsourcing
Outlook of future growth potentials of global preclinical development outsourcing market

Chapter One - Latest Trends of Global Drug R&D Outsourcing
1.1 Introduction
1.2 Low R&D productivity forcing drug companies to change their R&D strategies
1.3 Major pharma companies' new R&D focuses
1.4 Major pharma companies' new R&D models
1.5 Major pharma companies' current R&D outsourcing strategies
1.6 Biotech companies' current R&D outsourcing demands and strategies

Chapter Two - Latest Trends of Global Preclinical Development Outsourcing
2.1 Introduction
2.2 Preclinical development integrated into discovery research - An IND-enabling discovery research model
2.3 Product-relevant cell lines gradually replacing animal models
2.4 Development of new technologies to more precisely probe toxicity of drug candidates
2.5 Latest trends of global preclinical development outsourcing
2.6 Current trends of preclinical development outsourcing in emerging countries

Chapter Three - Outlook of Future Growth Potentials of Global Preclinical Development Outsourcing Market
3.1 Introduction
3.2 Analysis of future drug R&D strategies of global major pharma companies
3.3 Analysis of future global drug R&D budget growth potentials
3.4 Analysis of future outsourcing demands for preclinical development service
3.5 Analysis of emerging countries' roles in future global preclinical development outsourcing market
3.6 Analysis of current global preclinical development outsourcing market
3.7 Future growth forecast of global preclinical development outsourcing market