Report CRO Market Grows Significantly in 2012
- CRO market reached $13.6 billion in 2012
- Emerging countries have become ‘attractive regions for pharmaceutical outsourcing,’ says analyst
CRO Market Grows Significantly in 2012, with BRIC Regions Representing a Huge Untapped Opportunity
LONDON, UK (GlobalData), 28 August 2013 - The total combined peer group revenue from Contract Research Organizations (CROs) increased by 10.2% year-to-year, from $12.4 billion in 2011 to $13.6 billion in 2012, driven mainly by greater demand for outsourced clinical services as drug makers look to contractors as a strategy to off-set the high cost of bringing new therapies, states research and consulting firm GlobalData.
According to the company’s latest report*, this growth in the CRO sector was largely fuelled by Quintiles, the market’s largest CRO, which independently contributed approximately $397 million to the $1.2 billion market increase. Quintiles’ revenue grew by 12.1% year-on-year to $3.7 billion in 2012, demonstrating considerably larger growth than its closest rival, Covance, which grew at 4% year-to-year to $2 billion. Quintiles was also effective at turning its order backlog into revenue, and winning new business contracts in emerging markets in Europe and Asia.
BRIC and other emerging regions saw a flood of investment and business activity from CROs in 2012. Combined peer group revenue in the BRIC regions increased 14.6% above 2011 levels to $394 million in 2012. GlobalData expects this trend to continue into the near term, with CROs looking to increase their share in these lucrative markets.
Adam Dion, GlobalData's Analyst covering Healthcare Industry Dynamics, says: “Asia, Central and South America, as well as Eastern Europe, have become attractive regions for pharmaceutical outsourcing as a result of easy access to a large number of treatments, low labor and manufacturing costs, and highly skilled medical workforces.
“However, having an on-the-ground regulatory support and local infrastructure are key to implementing a successful product commercialization strategy in these emerging markets, particularly in China and India, where approval timelines are considerably protracted," concludes Dion.
-NOTES TO EDITORS-
This report provides an overview of the key drivers and trends shaping the global CRO market; including biologics manufacturing, emerging markets, and eClinical technologies.
Companies covered in this report: Accelovance, Accovion, AMRI, Aptuit, Asklep, BioRasi, Catalent, Charles River, Chiltern, Clinipace, ClinStar, CMIC, Covance, CromSource, DKSH, EPS Corporation, Frontage, Icon, INC Research, Novella Clinical, Novotech, Ockham, Octagon Research Solutions, Paragon Biomedical, Parexel, Patheon, Pharmaron, Pharm-Olam, PPD, PRA International, PSI, QPS, Quintiles, ReSearch Pharmaceutical Services, Synexus, Syngene, SynteractHCR, TFS International, and WuXi.
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Posted: September 2013