Increasing R&D expenditures and the high cost of the drug development process in the developed countries have been boosting the market over the years. However, stringent regulations for conduction of clinical trials and variations in the GMP guidelines across countries around the globe are likely to have a negative impact on the growth of the market in the coming years.
A rise in outsourcing activities by pharmaceutical companies has been witnessed during recent years. This trend has been seen as a plan to remain competitive and flexible in a market of exponential growth, sophisticated technologies, and an unstable economic environment. Companies generally outsource R&D tasks which include a broad range of activities such as, fundamental research to late-stage development: hit exploration and lead optimization, target validation, genetic engineering, assay development, safety and efficacy tests in animal models, and clinical trials which involve humans. This is in turn expected to increase the demand of the clinical trial activities for various therapeutic areas, hence driving the growth of the Pre Clinical CROs market. According to a report by The Insight Partners, the major factors driving the growth of outsourcing activities by companies are, cutting costs, need for innovations, increased speed and agility, and accessing specialized knowledge and technologies.
Request sample PDF copy at https://www.theinsightpartners.com/sample/TIPRE00003316/
A decreasing percentage of profits has become a primary concern for pharmaceutical companies over the past decade. As per an analysis by PhRMA, around $0.8 to $1.7 billion is estimated to be invested by the pharmaceutical industry in R&D to bring a new drug to market. Hence, with an increase in the R&D expenditure, the need for Pre Clinical services is expected.
The global Pre Clinical CROs market, based on service, has been segmented into bio-analysis and DMPK studies, toxicology and other services. The toxicology segment held the largest share of the market in 2018. Moreover, the same segment is anticipated to register the highest CAGR in the market during the forecast period as toxicology testing plays a vital role in the drug discovery process to evaluate the safety of the drug candidate. Moreover, the test is also one of the most reliable and commonly performed that is taken into consideration for the translation of animal responses into an understanding risk among human subjects.
Europe is the second-largest geographic market and is expected to be the second most significant revenue contributor throughout the forecast period. The increasing number of clinical trials, the presence of prominent players in the CROs market, and rapid growth in the pharmaceutical companies are likely to be the major factors driving the growth of this market in the European region. Clinical trials are a vital step in discovering whether the medical strategy, treatment, or device is safe and effective for human use. It is one of the engines that drive innovation in the biopharmaceutical sector. Clinical studies help in understanding as well as determining the most suitable medical approaches for a particular therapeutic area. These trials are conducted primarily to collect data regarding the safety and efficacy of a new drug and device development. Before the approval of molecules and medical devices by the regulatory authorities, a series of clinical studies are carried out. Increasing the prevalence of chronic diseases is increasing the demand for the development of new drugs or medical devices for the treatment. According to a report published by Seeker Health, at any given point, there are approximately 6000 clinical trials for which patients enrol across the globe.
The major players operating in the Pre Clinical CROs market include Covance, Inc., Charles River, Eurofins Scientific, PRA Health Sciences, WuXi AppTec, Medpace, Inc., Pharmaceutical Product Development, LLC, Parexel International Corporation, ICON Plc, and MD Biosciences among the others. The market has witnessed various organic as well as inorganic developments during recent years in the Pre Clinical CROs market. For instance, in September 2019, Pharmaceutical Product Development, LLC (PPD) expanded its bio-analytical laboratory in Richmond, Virginia, enhancing immunochemistry, biomarker and chromatography services for biopharmaceutical clients.
Purchase Copy of This Report at https://www.theinsightpartners.com/buy/TIPRE00003316/
The Insight Partners is a one-stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We are a specialist in Technology, Healthcare, Manufacturing, Automotive and Defense.
Smart Market News brings you the stories of adopting innovative solutions and strategies that have been changing the world. Our insights on products, solutions, companies, and adoption of best practices help in understanding the markets better and make smarter decisions.
Smarter Decisions with Smart News
Smart Market News is committed to getting its readers the latest updates and insights on industries that help in making “smarter” business decisions. With insights and inputs from corporate decision makers, we bring you the stories of adopting innovative solutions and strategies that have been changing the world. Our editorial insights on products, solutions, companies, and adoption of best practices not only help in understanding the markets better, but also prove to be a complete package for your information needs.