Despite cutbacks caused by a drop in early-stage research, a new report finds that the global CRO market is poised to grow 14 percent per year over the next three years. That would make contract research a $35 billion industry by 2013.
The pharmaceutical and biotech industries are facing cost containment and regulatory pressures, which drive R&D outsourcing across the globe. Additionally, drugmakers also have to jump over higher regulatory hurdles, which has increased the complexity of clinical research. This, the Business Insight report claims, will lead to the CRO industry's growth as drug companies choose to outsource expensive and difficult research projects.
Other trends? An increasing number of CROs will enter a variety of strategic partnership deals in order to expand their service offerings and geographical presence. And there's plenty of room for consolidation: of the 1,100-plus CRO companies the top 10 players only accounted for 56.1 percent of the global market (Quintiles is the largest, with a market share of almost 17 percent). That means many smaller and mid-sized contracters could be buyout or merger bait. Finally, the report projects that biomarkers will become an important aspect of clinical research as the FDA places more emphasis on drugs that are both safe and effective.
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