CRO - Trends in The Pharmaceutical Industry

CRO has emerged as a prominent and rapidly growing trend in pharmaceutical industry over the past decade.

Possessing robust growth and exceptional potential, Contract Research Organizations have demonstrated a remarkable capacity to streamline processes, decrease operational costs, and enhance the overall quality of products, especially within the critical domains of clinical research and pharmaceutical manufacturing.

1. What is CRO ?

CRO – Contract research organizations are entities that specialize in providing comprehensive services encompassing research, development, and manufacturing of products. CROs offer a diverse array of services, ranging from preliminary research to the finalization of registration dossiers.

By strategically leveraging external resources, CROs strive to optimize processes, expedite timelines, and elevate the quality and effectiveness of research initiatives.

2. The Growing Trend of CRO Services

Contract research services, currently experiencing a period of rapid growth and evolution, are poised to become an even more prominent force in the industry over the next decade.

According to Marketsandmarkets, the CRO market is expected to grow significantly over the next five years, reaching a total value of $82 billion by 2024 and $129.8 billion by the end of 2029, with an annual growth rate of 9.6%.

This service plays a vital role in supporting research endeavors across a diverse spectrum of Active Pharmaceutical Ingredients (APIs) and therapeutic areas. Oncology has emerged as a particularly promising field for CRO involvement due to the concerning rise in cancer cases and the potential for high returns on investment.

Currently, North America boasts the largest market share for CRO services, but the Asia Pacific region is projected to experience the most rapid growth in the coming years. This dynamic landscape is populated by a number of prominent players, including established names like Labcorp, IQVIA, PPD.Inc, and Syneos Health…

3. Why is CRO Becoming So Popular ?

The escalating demand for research investment has been a primary catalyst for the expansion of the contract research market.

Pharmaceutical companies, recognizing the strategic importance of research and development, have been allocating significant resources to these initiatives, with the aim of bolstering their competitive advantage and diversifying their product offerings.

A significant increase of nearly 100% in the number of APIs entering research has been observed over the past decade, from 2013 to 2023. In response to this surge, companies have increasingly turned to outsourcing research activities as a strategic approach to enhance efficiency and reduce costs. This trend has played a pivotal role in driving the robust growth of the contract research organization services market.

Clinical trials conducted by Contract Research Organizations can be completed significantly faster, often achieving up to a 30% reduction in timeline compared to those conducted internally by pharmaceutical companies. This efficiency advantage was notably demonstrated during the COVID-19 pandemic, as exemplified by the strategic partnership between Pfizer and BioNTech, which leveraged long-term CRO contracts to accelerate the development and deployment of a COVID-19 vaccine.

This combination has accelerated the speed of research and production, to provide vaccines quickly and promptly. Production time for 1 dose of vaccine has been reduced by more than 80 days, and production capacity has increased from 2 billion doses/year to 3 billion doses/year.

The synergistic benefits of optimizing and combining resources are evident in the realm of research, where they contribute to improved efficiency, accelerated timelines, and reduced costs. The collaborative endeavors of leading pharmaceutical companies have been instrumental in propelling the growth of the industry, resulting in the timely introduction of high-quality products to the market.