The global healthcare contract
research outsourcing market is increasing at a compounded annual growth rate of
14.7 percent and is expected to be valued at $65.03 billion by 2018, according
to a new report from market research firm Transparency Market Research.
The report, "Healthcare
Contract Research Outsourcing Market – Global Industry Analysis, Size, Share,
Trends and Forecast, 2012 – 2018," found that the contract research
outsourcing market is being propelled by the recent and impending patent
expirations of some of the most successful brand name drugs of all time and the
inability of the current product pipeline to make up for the lost revenue.
Global pharma and medical device
companies are transitioning to an outsourcing model for several functions,
including clinical trials, medical writing and regulatory processes, according
to the report.
There are a few main factors
leading to the increase in outsourcing, said Harpreet Singh Buttar, senior
research analyst at Transparency Market Research.
“The global contract research
outsourcing market is driven by cost savings, globalization of drug and medical
device development and reduced productivity,” said Buttar. “The research
outsourcing process also enables pharmaceutical companies to break free from
the basic research and support processes and focus on drug R&D.”
“As the regulatory guidelines and
approval processes are becoming increasingly stringent, most pharmaceutical
companies are outsourcing their research activities in an attempt to curb their
R&D expenses,” added Buttar.
While outsourcing is an
attractive option for many companies, there are some drawbacks, including
quality and efficacy issues, he said.
“The research activities (that
are) outsourced are still facing challenges in terms of meeting requisite
standards and maintaining data integrity,” said Buttar. “This is creating an
apprehension in some sections of the industry to outsource.”
Among the most common countries
for outsourcing are China, India, Australia and Brazil, said Buttar.
“These countries possess abundant
expertise and technology to handle research processes related to the industry
and support the pharma giants who are involved in continuous research related
to advanced therapies and life saving drugs,” he said.
Source: healthcarefinancenews
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