Contract Research Outsourcing (CRO), which came into being in the seventies, evolved into an essential component of pharmaceutical market scenario. Demand for CRO services is forecast to increase with mounting pressure on pharma and biotech companies to lower costs and augment productivity. World market for Contract Research Outsourcing is projected to exceed $26.2 billion by the year 2012.
San Jose, California (PRWEB), October 22, 2008 -- Contract Research Outsourcing (CRO) has emerged as a topic of great interest in the global pharmaceutical and biotechnology markets. Patent expiries, heightened competition in generic drug space, and dwindling drug discoveries necessitate research and development (R&D), innovation, and marketing of new pharma and biotech products to combat price fixing and cost escalations. Smaller product life spans, worldwide regulatory challenges, and the increasingly slim deadlines for clinical development magnify in-house R&D expenditure and affect productivity. The concept of CRO emerged as a means to control in-house R&D costs, expand capacities, and improve core skills. Contract research organizations now offer a whole array of expert services ranging from pharmacology, pre-clinical safety evaluation, clinical trial management, study design, statistical analysis, regulatory services, and data collection to product support. Over the past 15 years, CRO services expanded to encompass all aspects of the drug development process. Outsourcing of contract research is now close to 50% vis-à-vis 5% of early1990s.
Global Contract Research Outsourcing (CRO) market revenues totaled an estimated US$15.9 billion in 2007. Revenues in the US, the largest market, are projected to exceed US$10 billion in 2011. Europe is poised to post the fastest annual growth rate in terms of revenues over the years 2000 through 2010, at a CAGR of 17.21%, driven mainly by favorable growth in Eastern European nations. Clinical Research is the largest service segment in the worldwide CRO market with revenues estimated at US$11.7 billion in 2008, while CRO market for drug discovery is poised to grow at a CAGR of 11.24% over the years 2000 through 2010. Though US and Europe top the global CRO market with an estimated share of 48% and 29% respectively, investment is increasingly favoring emerging markets in Central and Eastern Europe, Asia-Pacific, and Latin America. These markets offer the potential to conduct world-class R&D spearheaded with cost advantages.
CRO industry is highly fragmented with over 1100 players. Inevitably, competition is intense among companies to differentiate and capture the attention of a sponsor. Top eight companies account for a sizable share of market revenues. Select players operating in the industry include Criterium Inc., Covance Inc., Encorium Group Inc, ICON PLC, Kendle, MDS Inc, Pharmaceutical Product Development Inc, Parexel, PharmaNet, PRA International, Quintiles, Bio Analytical Research Corporation, Calvert Laboratories Inc., CentraLabS Clinical Research, Charles River Laboratories Inc., Huntingdon Life Sciences Research Inc., nTouch Research Corporation, PharmaTrials Inc., Radiant Research Inc, and Research Solutions LLC, among others.
"Contract Research Outsourcing: A Global Strategic Business Report" published by Global Industry Analysts, Inc., analyzes the global market with hard-to-find data and analytics for key regional markets such as the United States and Europe, along with rapidly growing markets such as Asia. The report provides a comprehensive review of market trends and issues, drivers, players, recent developments, mergers, acquisitions, alliances and other strategic industry activities. Analytical estimates and projections are presented in terms of annual revenues in US$ over the years 2000 through 2010. Long-term projections are presented for the years 2011 through 2015. Service segments independently analyzed include Drug Discovery and Clinical Research.
For more details about this research report, please visit http://www.strategyr.com/Contract_Research_Outsourcing_Market_Report.asp.
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Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world's largest market research publishers. The company employs over 700 people worldwide and publishes more than 880 full-scale research reports each year. Additionally, the company also offers a range of over 60,000 smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.
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