The Top 10 CROs: Positioning, performance and SWOT analyses
Cost containment and regulatory pressures within the pharma industry are driving R&D outsourcing across the globe. Clinical obstacles to approval have become more significant due to the growing availability of existing generic treatments, and the trend to adopt Health Economics Outcomes Research (HEOR) assessments is increasing the complexity of clinical research. As a result, the scope of the CRO industry is expanding, and the global market is predicted to value $35bn by 2013.
The Top 10 Contract Research Organizations is a report published by Business Insights that examines the competitive landscape of the global CRO industry. The latest key issues and evolving business models in the CRO market are identified and the leading companies in this sector are profiled in detail. For each of the top 10 CRO companies, this report provides a detailed examination of financial performance by business segment and growth strategies in the form of key acquisitions and divestments. The opportunities and threats facing each of these leading players are also assessed. This report also examines the size and growth of the global CRO industry, with analysis of major market drivers and trends in CRO destinations.
Key Findings
The global CRO industry valued $18bn in 2008, an increase of 14% over 2007. The CRO market will grow at an annual rate of 14% over the 2009 13 period.
Quintiles leads the global CRO market having accrued a market share of 16.9% in 2007, equivalent to sales of $2.7bn. There are over 1,100 players in the industry, and the top 10 players only accounted for 56.1% of the global market in 2007.
The fragmented structure of the CRO industry has led to an increase in strategic alliances, acquisitions, joint-ventures and other partnership deals as companies attempt to expand their service offerings and geographical presence.
Covance is the second largest global CRO, having registered revenues of $1.5bn 2007, representing a market share of 9.7%. Covance is building global capabilities, with many clinical trials now being conducted in emerging markets.
Biomarkers have the potential to become an integral part of clinical research, after the FDA recommended their usage throughout clinical trials to demonstrate desired clinical activity and safety.
Report: CRO industry to grow 14% annually for the next 3 years.
Despite cutbacks caused by a drop in early-stage research, a new report finds that the global CRO market is poised to grow 14 percent per year over the next three years. That would make contract research a $35 billion industry by 2013.
The pharmaceutical and biotech industries are facing cost containment and regulatory pressures, which drive R&D outsourcing across the globe. Additionally, drugmakers also have to jump over higher regulatory hurdles, which has increased the complexity of clinical research. This, the Business Insight report claims, will lead to the CRO industry's growth as drug companies choose to outsource expensive and difficult research projects.
Other trends? An increasing number of CROs will enter a variety of strategic partnership deals in order to expand their service offerings and geographical presence. And there's plenty of room for consolidation: of the 1,100-plus CRO companies the top 10 players only accounted for 56.1 percent of the global market (Quintiles is the largest, with a market share of almost 17 percent). That means many smaller and mid-sized contracters could be buyout or merger bait. Finally, the report projects that biomarkers will become an important aspect of clinical research as the FDA places more emphasis on drugs that are both safe and effective.