Report: Clinical trials market growing rapidly
A report by London-based visiongain predicts worldwide clinical trial services revenues will reach $32.73 billion in 2015. Revenues for CROs totaled $21.69 billion in 2010, according to Pharma Clinical Trial Services: World Market 2011-2021.
Pharmaceutical manufacturers are seeking to outsource all stages of the drug development process, according to the report. The main drivers for CRO revenue growth are the cost advantages of outsourcing and the regional and therapeutic expertise of research service providers. Off-shoring clinical trials to emerging markets, particularly India and China, will create revenue growth for global CROs. Indian and Chinese markets will grow with CAGRs over 20%, visiongain's market analysis showed.
Richard Lang, pharmaceutical industry analyst, said, "Strong therapeutic experience and significant cost savings are driving big pharma to outsource drug development to CROs. Full-service CROs will further benefit from multi-billion-dollar strategic alliances during this decade. Niche market players will benefit from the increased demand for specialized clinical trial services, particularly in cancer and CNS disorders."
Demand for late-stage development services has outgrown that for early-stage services in recent years, the report said. Pharma and biotech companies are focusing on near-registration projects to combat the impending patent cliff. Continued late-stage service demand will drive market growth from 2011 to 2015. Strategic alliances across full development programs will secure long-term revenues for CROs.
Visiongain forecasts that the overall pharma clinical trial services market will grow rapidly to 2021. The market’s future appears strong, through increasing demand from many therapeutic areas, the report concluded.