San Francisco, 20 September
2018: According to a report published by Grand View Research,
Inc.; the preclinical
CRO market is estimated to reach a valuation of around USD 6.6
billion by 2025. Growing R&D expenditure for early stage and late-stage
drug development, rise in number of drugs in preclinical phase, and increasing
focus of life science companies on their core facilities can propel the market
over the forecast period (2014 to 2025). The market is projected to exhibit a
8.3% CAGR over the forecast period due to rise in R&D expenditure for drug
development. Growing drug pipeline for cancer and autoimmune diseases is
expected to boost market demand in the coming years.
The outsourcing model is mainly
adopted by life science companies to reduce the total R&D expenses required
for drug discovery and development, which is likely to increase the demand for quality
contract research organizations (CROs). Rising preclinical pipeline for cancer
and orphan diseases is expected to drive the demand for outsourcing in
preclinical trials. Approximately, 50% failures cases in preclinical phase are
caused due to issues at the time of nonclinical toxicology testing and 5.2%
failure rates are due to issues in preclinical pharmacokinetic testing, according
to a report by the Servier Research Institute.
Access
Research Report of Preclinical
CRO Market@ www.grandviewresearch.com/industry-analysis/preclinical-cro-market
High rate of failure in toxicology
tests is likely to induce demand for preclinical CROs. Improving capabilities of
these CROs is also contributing towards the market growth and encouraging outsourcing
of preclinical services to CROs. However, improvement in quality standards is
likely to overcome the challenge of standardization. The outsource vendors are
increasingly taking efforts to adhere to the international standards set by
various regulatory authorities including European Medicines Agency (EMA) and
the U.S. Food and Drug Administration (FDA). This is also expected to create
positive outlook for the market.
The worldwide preclinical CRO
market can be segmented on the basis of service, end-use, and region. Based on
service, the market can be split into toxicology testing, bioanalysis and DMPK
studies, and other preclinical services. As per end-use, the market can be
fragmented into biopharmaceutical companies, government and academic institutes,
and medical device companies.
Geographically, the market can
be divided into North America, Europe, Asia Pacific, Latin America, Middle East
and Africa (MEA). North America is
likely to dominate the market during the forecast period. This can be attributed
to existence of early stage development CROs, improved quality of work,
economic stability, developed scientific experience and acumen, and better
logistics in the region. Approval of the 21st Century Cures bill in the U.S.
has spurred the approval process for introduction of breakthrough drugs and
medical devices. These updates in the approval process are anticipated to
foster innovation and also expected to boost demand for preclinical services,
which in turn can boost market growth.
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Grand View Research at: www.grandviewresearch.com/industry/pharmaceuticals
In the United States, toxicology
testing is a key aspect of Investigational New Drug (IND)-enabling studies. Thus,
rise in subcontracting of noncore preclinical studies to CROs and the improving
capabilities of CROs to provide further value add services are likely to drive
the market growth in the coming years.
Asia Pacific is likely to showcase
robust growth in the coming years. Changing business model of MNCs outsourcing
and growing R&D expenditure and availability of cost-effective CRO agencies
in countries like China and India have boost the preclinical outsourcing trend
in the region.
Prominent players operating in
the market include PRA Health Science, Inc.; Charles River Laboratories
International, Inc.; Medpace, Inc.; Pharmaceutical Product Development, LLC.;
and Laboratory Corporation of America.
Many life science firms are
shifting from a functional to outsourcing model. This is likely to boost the
demand for large CROs which provide end-to-end preclinical services. For
instance, AstraZeneca extended its partnership with Charles River Laboratories
for safety assessment, development of orphan drugs, and pharmacokinetic
services. Rising trend of outsourcing end-to-end services in biopharmaceutical
companies is likely to boost the market growth. Demand for this service is
extremely high across small and mid-size biopharmaceutical firms that lack sufficient
inhouse-expertise required for preclinical phase of drug development.
Access
Press Release of Preclinical CRO Market@ www.grandviewresearch.com/press-release/global-preclinical-cro-market
About
Grand View Research
Grand
View Research, Inc. is a U.S. based market research and consulting company,
registered in the State of California and headquartered in San Francisco.
The company provides syndicated research reports, customized research reports, and consulting services. To help
clients make informed business decisions, we offer market intelligence studies ensuring relevant and
fact-based research across a range of industries, from technology to chemicals,
materials and healthcare.
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