The global market for contract research organization services is expected to grow as a result of increasing clinical trials in the years to come.
According to a Fortune Business Insights report, the market valuation of CRO companies was US $38,396.4 million in 2018. The report further stated that the market is expected to rise to US $90,926.3 million by 2026.
What is a Contract Research Organization?
A contract research organization is an outsourced organization which is engaged in providing several pharmaceutical services like product development, regulatory updates and statistical analysis.
A contract research organization can also assist with the submission of applications for new cure approvals as well as framing applications in a way that complies with regulatory requirements.
Due care is taken by CRO services to ensure the application meets all safety standards as stipulated by regulatory authorities.
A key factor leading to the growth of contract research organization services in the near future are rising healthcare expenditures by private organizations as well as the government.
The State of CRO Industry
The double-digit growth enjoyed by biotech and pharmaceutical companies a few years ago is now declining to single digits. As a result, the return on investment has also begun to shrink.
Given this scenario, biotech and pharmaceutical companies are under increasing pressure to control their production and development costs.
The downward pressure on keeping costs low has resulted in many of the companies evaluating the option of contract research organizations for clinical trials.
Many companies within this sector have adopted the strategy of outsourcing their clinical trials to specialists in the field, such as CROs. This trend is expected to continue with even more companies seeking to control the high cost of developing new cures under control.
Role of Non-Profit Organizations in the Growth of CRO Services
The demand for Contract Research Organizations has seen a marked increase from the time healthcare organizations have realised the many benefits of CRO services in business operations.
Escalating demand for CRO services has piqued the interest of investors who visualise a tremendous potential for growth. This rising interest among investors who are now getting involved in developing CRO services is yet another contributing factor to the rise of the global Content Research Organization market. Click here to learn more about the benefits of contract research organizations services in business operations.
Rise in Mergers and Strategic Collaborations
Increasing mergers and strategic acquisitions which are aimed at developing existing CROs as well as establishing new CROs are two factors which are likely to fuel the growth of the global CRO services market.
The global market for CRO services market will also benefit from the boost in company collaborations and agreements. The 2018, Cereno Scientific announcement of its collaboration with OCT a leading CRO services company is a case in point.
The objective of Cereno Scientific’s collaboration is to conduct phase 2 clinical trials for the study of its cure ‘CS1’. This partnership, as well as others, is expected to have a significant impact on market growth.
CRO Market Segments
There are two main areas in which the CRO market can be segmented.
These are as follows:
Type of Service
The CRO market can be segmented based on the type of services provided, which vary according to the development phase.
The service-based segments are as follows:
- Preclinical studies aimed at determining the relative toxicity
- Phase I – testing pharmacology and basic safety
- Phase II – efficacy evaluation
- Phase III – advanced safety and efficacy to provide sufficient data for drawing valid statistical conclusions which are required by regulatory authorities
- Phase IV – further testing once regulatory authority approval is granted for marketing
- Cure discovery
- Other services such as bio-statistics, pharmacovigilance, clinical data management, monitoring, site management, protocol development, medical writing and regulatory services
Another approach for categorizing the CRO services market is based on the therapeutic area of the cures or of the equipment being researched.
The segments here comprise solutions-focused research directed for:
– infectious diseases, cancer, cardiovascular diseases, central nervous system disorders
– other therapeutic areas such as dermatology, diabetes, respiratory and various metabolic diseases.
It is worth noting that the oncology segment has boosted R&D development for cancer cures as a result of the loosening of regulatory requirements by the US Federal Drugs Administration.
The changes which are being implemented or are under consideration by the US Federal Drug Administration allow trials for organ-on-chip.
The changes being implemented or considered by the FDA include allowing animal trials to be substituted by organ-on-chip trials in early stages. It allows non-trial data from patients to be included.
It also allows changing the end benchmark from the point of proving the cure improves overall survival rates to showing it prolongs the period a patient lives without a worsening of the disease.
The growth rate in various segments significantly differs from market size. For instance, the metabolic disease segment, researching treatment for glandular disorders and diabetes, is growing at a faster pace than the oncology sector.
This is due to the demand for development of new cures from the collaboration between academia and the industry.