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Monday 18 May 2020 , 2:21 pm

Increasing Outsourcing of R&D Activities is Propelling the Growth of Healthcare CRO Market

The Healthcare CRO Services market is projected to grow due to increasing R&D investments from pharmaceutical companies and extensive drug pipelines for the treatment of various chronic diseases.
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In the era of globalization, rapid advancements in technologies enable biotechnology and pharmaceutical companies to outsource their research projects to contract research organizations (CRO). CRO provides support to the various sectors in healthcare and life sciences including biotech, pharma, and medical devices. The support is provided in the form of outsourced research services on a contract basis.

CRO can be found on different ranges right from large, international full-service organizations to very small, niche specialty groups. It has been observed that these organizations are very busy and mostly its employees work longer hours than in Pharmaceutical companies. The main focus of CRO is to gain more profit and bring in new business projects as opposed to find a specific cure for a disease.

The research report published by The Insight Partners states, “The Healthcare CRO Services market is projected to grow due to increasing R&D investments from pharmaceutical companies and extensive drug pipelines for the treatment of various chronic diseases, such as immunological disorders, metabolic disorders, and neurological disorders. Moreover, the increasing outsourcing of pharmaceutical and biopharmaceutical R&D activities, a high failure rate of drug clinical trials, propels the growth of the market in the forecast period.”

Currently, know CRO companies such as Charles River Laboratories, Inc., Icon plc., IQVIA Inc., Laboratory Corporation of America Holdings, and Medpace etc. are dominating the market. But, for exponential growth, many companies are focusing on some organic strategies like product launches, approvals and everything related to patents and events. On the other side, for developments, some companies are performing inorganic strategic including collaborations & partnerships and acquisitions, etc.

For instance, in February, Synteract, a CRO partnering with pharma and biotech companies to bring new medicines to the market, has acquired Clindata’s human health biometrics division to meet market demand for more adaptable biometrics services solutions. Synteract claimed that this acquisition will extend its existing global footprint into Asia Pacific and Africa, and offers another core biometrics services hub, complementary to those it operates in Europe and the U.S.

On the occasion, Clindata CEO, Theo Erasmus, added, “With our combined biometrics capabilities, clients will benefit from a complete service offering incorporating all data components from research, advice on study design, document planning to PK analyses and results interpretation, as well as global capabilities, all provided by one integrated CRO. We are glad to be joining Synteract and creating a world class delivery team.”

Impact of COVID-19 on Healthcare CRO Market

As COVID-19 crisis continues, many Cancer Research organizations/institutes and Biotech/Pharma companies are struggling to meet the timelines as well as risk of mitigation actions. Also, they are eager to resume their research and development projects to close their pending programs. Some CROs are coming with innovative solution so that after resuming the work, companies can complete their work in short time efficiently.

Recently, Altogen Labs, a Texas-based CRO, announced that it has developed an Instant Online Quote tool to advance research program planning and scheduling. This tool will help scientists to select experimental variables (such as strain, number of treatment and control groups, treatment frequency, route of test article administration, etc) and generate an instant quotation for the project.

Market researchers predict that with increasing research in Oncology segment, the CRO market will grow exponentially in coming years but, shortage of skilled human resources in the field will restrain the growth of the market.

Neha Mule

Neha writes articles on sectors including medicine, food, materials, and science & technology. A qualified statistician, she has the ability to observe and analyze the trends in global markets and write compelling articles that help CXOs in decision making. She is a bookworm and loves to read fiction, lifestyle, science and technology. Neha comes with 6 years of experience in content writing and editing that involves blog writing, preparation of study materials and OERs.

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