Preclinical CRO Market worth over $7.8bn by 2027
Published Date: February 9, 2021 Authors: Sumant Ugalmugle, Rupali Swain
Preclinical CRO Market size is set to surpass USD 7.8 billion by 2027; according to a new research report by Global Market Insights, Inc.
Preclinical CRO market growth is owing to advancement in technologies, and growing prevalence of various disease condition. For instance, Charles River and Distributed Bio partnered to create a platform for integrated antibody discovery platform. This platform allows clients to access the data records in preclinical phase. Similarly, other prominent industry players operating in the market are focusing on constant upgradation and innovation with efficient products. Moreover, regulatory bodies have laid certain regulations and guidelines to examine all the data for safety and efficacy of drug in preclinical trials that will further spur the market expansion of preclinical CRO.
Outsourcing of R&D activities for drug development process by the pharma and biopharmaceutical firms will boost the market revenue
Pharmaceutical and biopharmaceutical firms are gradually outsourcing R&D activities to private CROs and academic institutes. These firms are adopting such strategy to sustain the highly competitive market and increase the overall profit margin, thereby fostering the market value of preclinical CRO. The R&D activities that companies opt to outsource include extensive research and tasks that is from preclinical trials to late-stage development. Thus, outsourcing of R&D activities is increasing, thereby fueling the market demand. Additionally, outsourcing will continue to grow as it significantly lowers the cost of R&D expense and in-turn, increase the profit margin for the companies. Thus, outsourcing of R&D activities for drug development process by the pharma and biopharmaceutical firms will influence the industry growth over the forecast time period. However, stringent regulatory policies may impede the overall market size.
Preclinical toxicology studies are legal prerequisite of drug development
The toxicology testing segment held more than 34% of the preclinical CRO market share in 2020. Toxicity studies assist to regulate the boundary of safety of a drug for its probable dose. The data is important in controlling parameters for trials to enhance safety and reduce risks. Thus, preclinical toxicology studies are legal prerequisite of drug development. Assessment of reversibility and severity of toxicity, dose arrays and their association to exposure will assist in defining degree and dose.
Browse key industry insights spread across 104 pages with 113 market data tables & 14 figures & charts from the report, “Preclinical CRO Market Size By Service (Bioanalysis & DMPK Studies, Toxicology Testing), By End-use (Biopharmaceutical Companies, Government & Academic Institutes, Medical Device Companies), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Increasing R&D activities for development of technologically advanced medical devices will drive the market growth
The medical device companies accounted for USD 1.3 billion in 2020 led by growing demand for special preclinical CRO services that cater unique needs of medical device and diagnostics companies. Preclinical trials play an important role during development and life cycle of medical devices and thereby should impel the market expansion of preclinical CRO. The preclinical surveys are conducted to offer evidence where required, to support safety claims and medical device performance made by the manufacturer.
Rising government support for conducting preclinical research in European region will propel the market revenue
Europe preclinical CRO market size was USD 1.6 billion in 2020 and is anticipated to reach USD 2.5 billion by 2027. Several regional market players in the pharmaceutical sector outsource their processes of preclinical CRO services, thereby stimulating the market value. In addition, growing support from government to develop drugs will further boost the industry expansion. European region continues to grow as an advantageous landscape for conducting preclinical research due to its established regulatory environment and a well-developed healthcare infrastructure. This will attract more companies to opt for preclinical CROs services in European countries, thereby augmenting the market demand.
Adoption of inorganic growth strategies to strengthen companies revenue
Some of the eminent companies operating in the preclinical CRO market include Charles River Laboratories, Laboratory Corporation of America Holdings, Envigo, Pharmaceutical Product Development among others. These industry participants focus on strategies such as partnerships, acquisitions, mergers and innovative product development to garner more revenue and sustain industry competition.