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Driven by a growing readiness of pharma companies to outsource a wider range of their R&D tasks, CROs offer a strong value proposition to pharmaceutical companies.
FREMONT, CA: The pharma business model is undergoing radical changes. Over the last decades, the pharmaceutical industry has gradually become more willing to look externally and embrace the concept of outsourcing as it searches for new sources of innovation. This has given the industry with increased flexibility in terms of sourcing work with organizations that can offer the right expertise and potentials. These changes have become necessary as technologies started rapidly advancing, and pressures for healthcare and new therapies increased. Ultimately, the role of CROs (Contract Research Organizations) in the pharma industry has become even larger in accelerating, guiding, and simplifying drug development. Here is more to it.
The CRO industry is highly fragmented, with a multitude of small to mid-sized firms. CROs offer broad therapeutic and development expertise with substantial scale, capabilities, IT systems infrastructure, and data analytics capability. Over the last few years, there has been some consolidation in the CRO landscape, leaving only larger CROs with the global scale and infrastructure, therapeutic and development expertise to aid and fulfill the demanding drug development programs pharmaceutical and medical device companies. However, the service offering among large CROs across the drug development lifecycle is becoming increasingly unique.
Evolving therapies are bringing a change in the approach to clinical research and trials. An increased focus on patient-centricity is embraced by today’s governmental agencies, patient advocacy groups, and the healthcare industry. This is important from an ethical standpoint. Patient-centricity ensures that pharma design the right studies, and they engage patients early, so they are more likely to require to participate as partners in the clinical trial process. Trials demand specific medical expertise, institutional infrastructure, management resources to handle adverse effects, and the resources to manage the investigational products.
As pharmaceutical companies focus on improving operational efficiency, CROs will benefit from increased outsourcing of R&D functions. The continued expansion of capabilities and services of CROs will increasingly attract pharmaceutical companies to outsource a greater portion of R&D function to drive considerable cost savings.
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