Healthcare Contract Research Organization Market - Recent Trends and DevelopmentsHealth Care Management ConsultantsUpdated on Apr 22, 2020 View more like this | Visit NEW YORK, NY | Contact Grand View Research, Inc. |
The global healthcare CRO market is anticipated to be worth USD 62.1 billion by the year 2027, advancing at a CAGR of 6.6%% during this period, according to a recent report by Grand View Research.
Pharmaceutical companies are continuously faced with rising costs of drug development, with the process also being very time consuming, which can prevent the organization from functioning optimally in other core areas. The presence of contract research organizations has meant that the companies can outsource these activities to them, as CROs offer cutting edge services and ensure successful completion of the projects.
As per ClinicalTrials.gov, there were 318,901 registered clinical trials and studies as of October 2019, which were just around 2,119 in 2000. The complexity of these trials has also increased, meaning that the necessity to have contract research organizations take over and conduct them has also risen. The growth in trials and the research and development required for bringing pharmaceutical products in the market has given boost to the market.
Even with the important function that healthcare CROs provide, it has been stated that only 40% of the clinical development was outsourced during 2019; however, experts suggest that this number will rise to 50% in the coming years, which will prove to be a driving factor for the market. Factors such as time and cost required for these trials, complex regulations by the FDA, and insurance reimbursement are expected to play a major role in market growth.
According to PricewaterhouseCoopers, healthcare is expected to be the top spending sector on research and development by 2020, with the healthcare R&D spending in 2018 standing at 169.5 billion. Many well-known healthcare organizations were identified as high-level innovators in this field, and this growing spending on such initiatives is expected to boost market growth in coming years.
In terms of the type of service, the clinical trials segment led the global market in 2019. The segment is further classified into Phases I, II, III and IV. The outsourcing of the phase III trials to healthcare CROs drove this segment, as this is the most expensive phase in drug development, with around 90% of the segment earnings coming from this area. Another important segment is drug discovery, which has been further classified into target validation, lead identification, and lead optimization.
In terms of services, the clinical monitoring segment had the highest market share in 2019, and the introduction of smart analytics and real-time data acquisition devices is expected to boost this sector further. The regulatory/medical affairs sector, meanwhile, is expected to show rapid growth during the forecast period.
The current outbreak of coronavirus across the globe, coupled with the absence of any effective medicines as of now, has meant that pharmaceutical companies are in the race for developing an effective drug. Additionally, the requirement of various medical components such as testing kits and ventilators has also seen a meteoric rise, which is expected to translate to huge demand for CROs. Many companies, big and small, are engaged in conducting trials at this moment, under approval by FDA.
In April 2020, IQVIA announced the launch of its COVID Active Research Experience (CARE) Project. The platform is open to all, and allows sharing of information about disease prevalence, treatment outcomes and symptom progression. The aim of the initiative is to make screening and survey data available on a summarized basis across various dimensions for state and federal public health purposes.
In April 2020, Accelerated Enrollment Solutions, a business unit of PPD, announced a collaboration with Science 37, for recruiting and enrolling clinical trial participants who live beyond the geographic location of traditional research sites, while also working on providing telehealth support to remotely screen patients for coronavirus and conduct study visits. The patients can participate in AES studies through Science 37’s Metasite™.
In January 2020, LabCorp launched its suite of cell and gene therapy development solutions from Covance, its drug development unit. The objective of these solutions is to reduce the time and cost for sponsors at each phase and across the full spectrum of their therapy development needs.
In January 2020, Parexel Biotech and RenovoRx announced that the TIGeR-PaC Phase III clinical trial of Trans-Arterial Micro-Perfusion (TAMPTM) had reached its first patient enrolled in Europe. The objective of the trial is to determine whether delivering gemcitabine chemotherapy directly to the tumor intra-arterially via ‘RenovoCath’ (FDA cleared device), can reduce the risk of cancer spread in pancreatic cancer patients, and extend the survival chances while improving life quality. The study has more than 30 active or in-process sites in Belgium and the U.S.
Pharmaceutical companies are continuously faced with rising costs of drug development, with the process also being very time consuming, which can prevent the organization from functioning optimally in other core areas. The presence of contract research organizations has meant that the companies can outsource these activities to them, as CROs offer cutting edge services and ensure successful completion of the projects.
As per ClinicalTrials.gov, there were 318,901 registered clinical trials and studies as of October 2019, which were just around 2,119 in 2000. The complexity of these trials has also increased, meaning that the necessity to have contract research organizations take over and conduct them has also risen. The growth in trials and the research and development required for bringing pharmaceutical products in the market has given boost to the market.
Even with the important function that healthcare CROs provide, it has been stated that only 40% of the clinical development was outsourced during 2019; however, experts suggest that this number will rise to 50% in the coming years, which will prove to be a driving factor for the market. Factors such as time and cost required for these trials, complex regulations by the FDA, and insurance reimbursement are expected to play a major role in market growth.
According to PricewaterhouseCoopers, healthcare is expected to be the top spending sector on research and development by 2020, with the healthcare R&D spending in 2018 standing at 169.5 billion. Many well-known healthcare organizations were identified as high-level innovators in this field, and this growing spending on such initiatives is expected to boost market growth in coming years.
In terms of the type of service, the clinical trials segment led the global market in 2019. The segment is further classified into Phases I, II, III and IV. The outsourcing of the phase III trials to healthcare CROs drove this segment, as this is the most expensive phase in drug development, with around 90% of the segment earnings coming from this area. Another important segment is drug discovery, which has been further classified into target validation, lead identification, and lead optimization.
In terms of services, the clinical monitoring segment had the highest market share in 2019, and the introduction of smart analytics and real-time data acquisition devices is expected to boost this sector further. The regulatory/medical affairs sector, meanwhile, is expected to show rapid growth during the forecast period.
The current outbreak of coronavirus across the globe, coupled with the absence of any effective medicines as of now, has meant that pharmaceutical companies are in the race for developing an effective drug. Additionally, the requirement of various medical components such as testing kits and ventilators has also seen a meteoric rise, which is expected to translate to huge demand for CROs. Many companies, big and small, are engaged in conducting trials at this moment, under approval by FDA.
In April 2020, IQVIA announced the launch of its COVID Active Research Experience (CARE) Project. The platform is open to all, and allows sharing of information about disease prevalence, treatment outcomes and symptom progression. The aim of the initiative is to make screening and survey data available on a summarized basis across various dimensions for state and federal public health purposes.
In April 2020, Accelerated Enrollment Solutions, a business unit of PPD, announced a collaboration with Science 37, for recruiting and enrolling clinical trial participants who live beyond the geographic location of traditional research sites, while also working on providing telehealth support to remotely screen patients for coronavirus and conduct study visits. The patients can participate in AES studies through Science 37’s Metasite™.
In January 2020, LabCorp launched its suite of cell and gene therapy development solutions from Covance, its drug development unit. The objective of these solutions is to reduce the time and cost for sponsors at each phase and across the full spectrum of their therapy development needs.
In January 2020, Parexel Biotech and RenovoRx announced that the TIGeR-PaC Phase III clinical trial of Trans-Arterial Micro-Perfusion (TAMPTM) had reached its first patient enrolled in Europe. The objective of the trial is to determine whether delivering gemcitabine chemotherapy directly to the tumor intra-arterially via ‘RenovoCath’ (FDA cleared device), can reduce the risk of cancer spread in pancreatic cancer patients, and extend the survival chances while improving life quality. The study has more than 30 active or in-process sites in Belgium and the U.S.
