High R&D Spending of Pharmaceutical Industry
The research and development (R&D) spending of pharmaceutical companies has been steadily increasing over the past few years. This was mainly due to numerous patent expiries, which resulted in a patent cliff, in 2012. This is expected to continue for another 10 years. As a result of the patent expiration, most blockbuster molecules will no longer remain the money minting machines they have been, and pharmaceutical companies will have no other option but to develop new revolutionary molecules for survival. Therefore, the companies are spending more on R&D to accelerate the development of drugs through clinical trials. A major part of the R&D expenditure of a pharmaceutical company goes into executing clinical trials. The biopharmaceutical industry accounts for around 90% of the total spending on clinical trials on medicines and devices in the United States. Data management costs, patient recruitment costs, site recruitment costs, and clinical procedure costs are some of the cost components of a clinical trial.
The growing demand for drug development requiring clinical trials and increasing number of CROs are some of the other factors contributing to the growth of the market.
Lack of Adequate Regulatory Framework for Conducting Clinical Trials
Despite emerging markets currently being the most sought-after destinations for clinical trials, most countries in the emerging markets have an extremely poor and underperforming regulatory infrastructure in place. In various instances, digitization is not made use of (which makes online application tracking almost impossible) and the manual processing of the information takes a long time. Most of these countries’ regulatory policies are based on local conditions and are not designed in a globalized perspective. Thus, the process of conducting a clinical trial in these regions is not only complicated, but the actual approval process also takes a very long time, at times more than a year. Even though countries, such as China and India, are currently working on overcoming this issue and have been successful to a considerable extent, most emerging countries still suffer from poor regulatory infrastructure. Hence, the lack of good regulatory infrastructure in the emerging markets is hindering the growth of the global clinical trials market.
Additionally, stringent regulations for patient enrollment and the lack of skilled professionals in clinical research are also restraining the clinical trial support services market.
United States to have the Highest Share
Increasing R&D investments and growing demand for drug development are the main factors for the growing market in the United States. The R&D budget of biopharmaceutical companies have increased over the past few years, owing to their increasing focus on regulating markets, complex molecules, and therapy segments. Pharmaceutical Research and Manufacturers of America (PhRMA) invested around USD 58.8 billion, USD 53.3 billion, and USD 51.6 billion in R&D in 2015, 2014, and 2013 respectively.
Major Players: ACCOVION GMBH, ALCURA HEALTH, CHARLES RIVER LABORATORIES, CHILTERN INTERNATIONAL LIMITED, COVANCE, INC., ICON PLC, INVENTIV INTERNATIONAL PHARMA SERVICES, PAREXEL INTERNATIONAL, PHARMACEUTICAL PRODUCT DEVELOPMENT LLC, PHARMNET, QUINTILES IMS HOLDINGS, INC., QUOTIENT BIORESEARCH, and WUXI PHARMATECH, among others..
Reasons to Purchase the Report
• Market analysis for the global clinical trial support services market, with region-specific assessments and competition analysis on a global and regional scale.
• Examining the various perspectives of the market with the help of Porter’s Five Forces Analysis
• Identify the treatment type that is expected to dominate the market.
• Identify the regions that are expected to witness the fastest growth during the forecast period.
• Identify the latest developments, market shares, and strategies employed by the major market players.
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