Contract research organisations market set to grow at a rate of 8.5%

Press Release   •   Feb 08, 2013 14:08 GMT

Revenues within the contract research organisations (CRO) were estimated to total $21.4 billion in 2010, an increase from 2009 revenues of $19.1 billion.

From 2009 to 2010 the industry grew at the rate of 12% which is considered to be very healthy in comparison to the other R&D industry growth.

A CRO is an organisation that provides support to the pharmaceutical, biotechnology, and medical device industries in the form of research services outsourced on a contract basis.

A CRO may provide such services as biopharmaceutical development, biologic assay development, commercialisation, preclinical research, clinical research, clinical trials management, and pharmacovigilance. CROs also support foundations, research institutions, and universities, in addition to governmental organisations.

It is estimated that the global R&D outsourcing market in 2010 was 25.3% of the total pharmaceutical R&D expenditure. The expenditure is estimated to increase at the rate of 5% annually and is expected to reach 37.1% of the total R&D expenditure by 2018.

All the companies are looking to cut down the time for launch of drugs along with a reduction in the expenditure on R&D.

As outsourced services in developing countries such as China and India move up the value chain to cover phase 1/2 trials, the total contracts value may increase to $20 billion by 2010.

Furthermore, certain therapeutic areas within pharmaceutical development are due for an even greater rate of growth, namely the oncology class, expected to see continued growth of upwards of 21% over the next few years due to the large target market, strong unmet medical need, and overwhelming number of drugs currently in development (667 for cancer vs. 252 for CNS disorders, 206 for cadiovascular disorders, and 186 for infections).

There are over 1,100 CROs in the world, despite continued trends toward consolidation (many CROs are being acquired in recent times or others go out of business).

It is a very fragmented industry with the top 10 controlling 56.1% of the market in 2008 and down to 55% in 2009. One estimate had the size of the market set to set to grow at a rate of 8.5% through 2015.

For more information on the contract research organisations market, see the latest research: Contract Research Organisations Market

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