Analysts at MarketsandMarkets have looked into their crystal ball and come up with a forecast of the pharmacovigilance and drug safety software sector. The authors predict the value of the market will top $150 million by 2019, with Asia and Latin America tipped to be the driving forces behind growth over the next few years.
The global market is forecast to achieve a compound annual growth rate of 6.5% from 2014 to 2019. Mature regions such as North America and Europe--which are currently the top two markets for drug safety software--will continue to command a sizable share of the sector, but growth is faster in some emerging markets. Demand for pharmacovigilance and drug safety software in Asia and Latin America is underpinned by the emergence of biotechs in Brazil, China and India, as well as the continuing transfer of R&D from Western companies to partners in emerging markets.
In the West, shifts in regulators' attitudes toward postmarket safety surveillance are still playing out. Europe is in the process of implementing pharmacovigilance legislation. And regulators on both sides of the Atlantic are increasingly interested in moving the burden of data generation from pre- to postapproval. The transition--embodied through initiatives such as Europe's conditional approvals--will allow companies to start selling certain drugs sooner but increase their postmarket surveillance responsibilities.
Software and service providers that can make complying with these and other safety requirements as painless as possible are likely to be in demand, prompting multiple companies to place bets on the future of the sector. CRO Parexel ($PRXL) became the latest company to do so this week when is struck a deal to buy Quantum Solutions India (QSI) for an undisclosed sum. QSI provides a range of pharmacovigilance services, including the hosting of drug safety databases using Oracle ($ORCL) Argus Safety system.
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