Pharmaceutical and biotech companies are outsourcing research in order to develop innovative products that meet the rising demand for therapeutics across a range of diseases. The willingness of contract research organisations (CROs) to invest in state-of-the-art facilities to conduct clinical trials is further advancing market prospects.
New analysis from Frost & Sullivan (, Analysis of the European Contract Research Outsourcing Markets, finds that the markets earned revenues of approximately $6.07 billion in 2011 and estimates this to reach $11.54 billion in 2018. Phase III clinical trials account for the largest share of the total CRO market in Europe.
The promise of novel therapeutic options that offer enhanced efficacy and safety is underlining the appeal of CROs for the pharma and biotech industry.
“Besides functionality, drugs are also tested for their efficacy and safety to ensure they meet the needs of patients across different ethnic groups and climatic zones,” states Frost & Sullivan Research Analyst Deepika Pramod Chopda. “The globalised nature of CROs enables them to facilitate the process of drug development for their clients.”
A key limitation to the seemingly inexorable march of CROs has been the ability of large pharmaceutical and biotech companies to perform R&D and clinical drug testing in-house.
“The availability of specialised research technologies, coupled with an exclusive focus on drug development and testing, will boost the chances of success for CROs and offset the benefits of in-house R&D services,” concludes Chopda. “Strengthening outsourcing partnerships and alliances with leading pharmaceutical and biotech companies through strategic long-term contracts will also support the uptake of CRO services.”
