What does the Pharma CROs Market Look Like?

Pharma Tech Outlook: Pharma Tech Magazine

What does the Pharma CROs Market Look Like?

By Pharma Tech Outlook | Monday, August 03, 2020

The growth of pharmaceutical services outsourcing will be highly influenced by small pharma, biotech, and medtech organizations, in the coming years.

FREMONT, CA: Pharmaceutical outsourcing has evolved as a robust and subsector of the life science industry.  As the pushing force for efficiency continues, more pharmaceutical, biotech, and medtech companies are approaching contract research organizations (CROs) as well as, contract development organizations, medical affairs specialists, and other service providers for help bringing products to market, manufacturing and distributing, and also improving quality. Various trends are driving the growth in pharmaceutical services outsourcing:

The current health or pharma environment is rich for pharma outsourcing

Biotech is thriving, and the capital is easily available as the US Food and Drug Administration regulatory ecosystem is approving of the new products. On the pharmaceutical front, the ongoing consolidation has encouraged an efficiency mindset. And across the healthcare and life sciences space, the big data is harnessed in new ways to make outsourcing easier and more efficient than ever.

The small pharma and biotech organizations have increased over the last decade

Top Contract Manufacturing Organization Companies


Many of these organizations have limited resources and staffing, which, therefore, leads to the outsourcing of tasks such as clinical trials, production of clinical lots, and, eventually, commercial services. In turn, outsourcing firms have developed and widened their range of service offerings to cater to the specific needs of these smaller pharma/biotech companies.

Pharma companies become more comfortable with outsourcing

Of the outsourced service providers, CROs have the highest penetration, with nearly 50 percent of clinical trials outsourced. Further areas of outsourcing are far less penetrated, although offering enough opportunity for investment. For instance, researching opportunities in health economics or outcomes research market access.

Great market fragmentation

The pharmaceutical market is beginning to change the direction towards an earlier stage. Trials are designed with an emphasis on subpopulations and innovative analytics. Traditional pharma often lacks the specialized skill set to design the trials with the level of specificity and, therefore, can amazingly benefit from an outsourcing partner.

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