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The CRO Market Outlook: Emerging markets, leading players and future trends
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Business Insights |
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99393 |
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167 pages |
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Abstract
Introduction
Rising costs and falling productivity, among other trends are driving
pharmaceutical companies to outsource an increasing range of functions to CROs
in search of time and cost savings. This produced strong double-digit growth
in the sector between 2003 and 2008. However, amongst other resistors, the
financial crisis resulted in reduced funding available for biotech companies.
This fully updated CRO Market Outlook assesses the market drivers and
resistors and predicts the effects of these. The report analyzes the
overarching trends in the industry; examines which regions are set to see
growth in CRO activity; evaluates the leading CROs; and outlines the future of
the industry. The report provides insight into conditions into seven emerging
regions including China, India and Latin America. It highlights the evolving
business and relationship models between CROs and sponsor companies and
enables optimal outsourcing strategy.
Key features of this report
- Identifies and analyses the most recent trends and issues in outsourcing
clinical R&D
- Describes where clinical trials will be conducted in the future
- Explores the complexities and the costs of outsourcing R&D to different
world regions
- Profiles the major international CRO players
- Provides a detailed assessment of the current CRO market including market
share information and the size/growth of R&D spending
- Focuses on emerging CRO markets
- Highlights evolving strategies for working with CROs
- Examines existing and future CRO business models
Key findings from this report
- The total CRO market size is estimated at $20bn in 2008 and expected to
grow at an annual rate of 8.5% to reach $35bn through 2015. The market is
highly fragmented and the number of CROs worldwide has reached over 1,100
despite continued consolidation.
- CROs provide substantial global capacity to drug developers and have
become a critical contributor to clinical trial activity. Projects with high
CRO involvement are associated with shorter development times.
- Of the large, global contract research providers, Quintiles is market
leader, with 15% of the global market share, followed by Covance and PPD. The
five largest CROs have increased their market share and now hold 55% of the
total market.
- The leading CROs are commodity full service providers operating on a
global scale. They act as one-stop shops for all services, from preclinical
through marketing.
- The number of clinical studies conducted in Asia, Central and Eastern
Europe and Latin America is constantly rising. India and China are the future
outsourcing destinations of choice.
- CROs and pharmaceutical companies are turning to strategic partnerships to
gain a competitive edge in the global business environment.
Table of Contents
Executive Summary
- The global contract research organization market
- CRO market analysis
- Established regions in the global CRO market
- Emerging regions in the global CRO market
- Leading players in the global CRO market
- The future of contract research
Chapter 1 - The global contract research organization market
- Summary
- Introduction
- The CRO contribution to drug development
- Market overview
- Key market drivers
- Key market restraints
- Conclusions and key findings
- Overview of the global CRO market
- Total revenue forecasts
- Global R&D expenditure and CRO market size
- Global clinical development outsourcing
- The contribution of CRO to drug development
- Current market drivers
- Growth of R&D expenditure from biotech and pharma
- Cost pressures encourage R&D outsourcing
- Long term growth and R&D expenditure of biotechnology companies
- Growing regulatory burden and safety concerns
- Patient recruitment
- Increasing number of products in development
- The development of biomarkers
- Current market restraints
- Near term reductions in biotech R&D spending
- Growing competition and customer consolidation
- New financial realities alter biopharmaceutical outsourcing landscape
- Shortage of clinical research personnel
- Electronic data capture: a threat to CRO revenue
- Key market trends
- Globalization
- EDC evolution
- Strategic alliances
Chapter 2 - CRO market analysis
- Summary
- Introduction
- Market conditions
- Competitive analysis
- Market share analysis
- Competitive dynamics
- Academic medical centers
- Site management organizations
- Laboratory analytical services
- Non-CRO niche service providers
- Conclusion
- CRO service models
- Introduction
- The full service model
- The niche model
- Industry strategies
- Consolidation: Mergers & acquisitions in the CRO industry
- Expanding the continuum of services: vertical integration
- Forward integration
- Backward integration
- Industry challenges
- Consolidation within the CRO industry: a threat to close customer
relationships
- Strategic outsourcing: demonstrating clear value to clients
- Co-development: sharing the risk
Chapter 3 - Established regions in the global CRO market
- The US CRO market
- Overview
- Drivers of the US CRO market
- Challenges of the US CRO market
- Competitive dynamics
- The CRO market in Western Europe
- Overview
- Infrastructure and local regulations
- Drivers of the CRO market in Western Europe
- Challenges of the CRO market in Western Europe
- Competitive dynamics
Chapter 4 - Emerging regions in the global CRO market
- The Central and Eastern European CRO market
- Overview
- Infrastructure and local regulations
- Benefits of outsourcing to CEE
- Challenges of outsourcing to CEE
- Competitive dynamics
- The CRO market in China
- Overview
- Infrastructure and local regulations
- Benefits of outsourcing to China
- Challenges of outsourcing to China
- Competitive dynamics
- The CRO market in India
- Overview
- Infrastructure and local regulations
- Intellectual property
- Legislative reforms
- Benefits of outsourcing to India
- Challenges of outsourcing to India
- Competitive dynamics
- The CRO market in Latin America
- Overview
- Infrastructure and local regulations
- Benefits of outsourcing to Latin America
- Challenges of outsourcing to Latin America
- Competitive dynamics
- The CRO markets in South Korea and Turkey
- Overview
- Infrastructure and local regulations
- Benefits of outsourcing to South Korea
- Challenges of outsourcing to South Korea
- Benefits of outsourcing to Turkey
- Challenges of outsourcing to Turkey
- Competitive dynamics
Chapter 5 - Leading players in the global CRO market
- Introduction
- The client perspective
- Capabilities of leading CROs
- Quintiles Transnational Corp
- Company profile
- Business description
- Partnering collaborations and recent deals
- Covance
- Company profile
- Business description
- Partnering collaborations and recent deals
- PPD Inc.
- Company profile
- Business description
- Partnering collaborations and recent deals
- Charles River Laboratories
- Company Profile
- Business description
- Partnering collaborations and recent deals
- PAREXEL International
- Company profile
- Business description
- Partnering collaborations and recent deals
- ICON plc.
- Company profile
- Business description
- Partnering collaborations and recent deals
- MDS Inc.
- Company profile
- Business description
- Partnering collaborations and recent deals
- Kendle International
- Company profile
- Business description
- Partnering collaborations and recent deals
- PRA International
- Company profile
- Business description
- Partnering collaborations and recent deals
- PharmaNet Development Group
- Company profile
- Business description
- Partnering collaborations and recent deals
Chapter 6 - The future of contract research
- vSummary
- Introduction
- The shift towards a strategic model
- Emerging markets
- Phases I and IV growth activity
- Electronic data capture
- Biomarkers
- Selected acquisitions/partnerships
- Conclusion
- Key findings and conclusions
Chapter 7 - Appendix
- Selected bibliography
- Index
List of Figures
- Figure 1.1: Estimated CRO market ($bn), 2003-2015e
- Figure 1.2: Global development expenditure and CRO market forecast ($bn),
2008-2014e
- Figure 1.3: Global outsourcing market by phase, 2006
- Figure 1.4: CRO usage and number of days by which projects overrun
- Figure 1.5: Global pharmaceutical R&D expenditure ($bn), 2000-2014e
- Figure 1.6: Number of FDA approvals 1990-2008
- Figure 1.7: Comparison of drug development cost estimates
- Figure 1.8: Global biotech R&D expenditure ($bn), 2004-2012e
- Figure 1.9: Number of products in development by phase 1998-2009
- Figure 1.10: CRO/Sponsor relationship models
- Figure 2.11: Market share of major players, 2008
- Figure 2.12: Typical full service CRO model
- Figure 3.13: R&D expenditures of PhRMA members and non-member companies
($bn), 1980-2009
- Figure 3.14: Overall indexed clinical trial costs by region, 2006-2008
- Figure 3.15: The European CRO market - revenue forecast ($bn), 2008-2012e
- Figure 3.16: Pharmaceutical R&D expenditure in Europe ($bn), 1990-2008
- Figure 4.17: Geographic distribution of clinical trials, 2005 to 2009f
- Figure 4.18: Clinical trial costs of European countries compared to the UK
- Figure 4.19: Comparison of trial registration periods in CEE countries
(days)
- Figure 4.20: CRO market in China ($m), 2007-2012e
- Figure 4.21: China' s capabilities across the value chain
- Figure 4.22: India' s capabilities across the value chain
- Figure 4.23: Number of clinical trials in Latin America, 2000-2008
- Figure 4.24: Clinical trials in South Korea, 2005-2009e
- Figure 5.25: Revenue growth of top public CROs in 2007-2008
- Figure 5.26: Capabilities of leading CROs, 2009
- Figure 6.27: Regional presence of major CROs
- Figure 6.28: Attractiveness of selected countries for clinical trials
- Figure 6.29: Global numbers of phase IV trials 2006-2009e
- Figure 6.30: Electronic data capture market size ($m), 2006E-2012e
- Figure 6.31: Clinical trials using predictive biomarkers, 2005-2009
List of Tables
- Table 1.1: Functions commonly performed by CROs
- Table 2.2: The global R&D outsourcing market: five major segments
- Table 2.3: SWOT analysis: the full service model
- Table 2.4: SWOT analysis: the niche model
- Table 2.5: Key deals in the CRO sector
- Table 4.6: Major CROs operating in Eastern Europe, 2009
- Table 4.7: Domestic Chinese CROs
- Table 4.8: Major domestic CROs operating in Latin America, 2009
- Table 4.9: Selected domestic CROs in South Korea and Turkey
- Table 5.10: Revenues ($m) and growth of major CROs, 2007-2008
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