Preclinical CRO Market

The global premedical CRO market size was valued at USD 4.5 billion in 2020 and is anticipated to expand at a CAGR of 8% during the forecast period, 2021-2028. The growth of the market is attributed to the increasing budget for the research & development activities for drug & treatment development which in turn rises the demand of the preclinical contract research organizations services or the CROs.
 

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A CRO is basically a company that can provide support mainly to the biotechnology, medical device and pharmaceutical industries by research services outsourcing on time-framed contract basis. They can also provide services involving biologic assay development, preclinical research, clinical trials management, pharmacovigilance, biopharmaceutical development, commercialization, and clinical research. The CROs were designed primarily to reduce costs and resources for the organizations in the development of new drugs and medicine in specific and niche markets. This way, they can target themselves to simplify entry into the drug markets they could not normally enter and start development as per the new market trends. CROs have found high applications in research institutions, governmental organizations such as the European Medicines Agency and National Institute of Health, universities and foundations. They explicitly provide clinical trial and study support for medical devices and drugs according to the needs of their clients, which can vary from large international organizations to small specialty groups.

According to the World Health Organizations (WHO) survey on the United States study research, there are about 85,000 clinical trials that takes place every year till 2020, which includes the entire range of clinical services that can be provided to the public. This is possible primarily because of the funding and investments the CROs receive from both the private industries and the government. The biopharmaceutical companies are outsourcing more than 35% of all their clinical trials to the CROs. The current COVID-19 pandemic has disturbed several premedical research studies and projects, thereby hampering the global CRO market growth in the initial periods of this crisis. However, the researchers and scientists were given permission to begin the analysis of the coronavirus, its weaknesses, vaccines and treatment to be developed in CROs. The COVID-19 vaccine premedical studies have been performing at a rapid pace in the medical industry , especially in the premedical CROS, thereby fueling the growth of this market in the later periods of this crisis.

Market Trends, Drivers, Restraints, and Opportunities

• Increasing spending and investing on CRO services is the primary reason for the projection of boosting the global premedical CRO market growth during the forecast period, 2021-2028.
• There has been drastic changes in the drug approval process by their respective regional administration bodies, making it more lenient and quick. In the United States, the Century Cures bill was passed on the primary notion of increasing the pace of launch in medical devices and breakthrough drugs. These modifications in the approval processes are major factors propelling the global premedical CRO market growth.
• High prices for the development of premedical CROs, high cost of services from the company’s perspective and high maintenance cost for assuring the quality of the services from these CROs, is anticipated to hinder the market growth. This becomes extremely difficult to function in developing countries such as India, South Africa and Brazil where there is limited healthcare infrastructure that cannot hold on to premedical CROs which has no short-term benefits.
• Lack of standardization in the premedical CROs does not necessarily comply with the international regulatory requirements (Good Labor Practice standards) that can lead to quality issues and thereby can present as main challenges that can restrict the market expansion in the coming years.
• R&D investment and technological advancement are expected to offer significant opportunities for the market players. Researchers and scientists have now discovered advanced diagnostic techniques in toxicology at the premedical phase reducing the error rate from 47% in the biopharmaceutical industry perspective to a mere 12% in the premedical CRO perspective.               

Scope of the Report

The report on the global premedical CRO market size includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Global Premedical CRO Market Segment Insights

Toxicology testing segment is projected to represent a large market share
Based on services, the global premedical CRO market is divided into bioanalysis & DMPK studies, toxicology testing, and others. The toxicology testing segment is expected to constitute a major share of 61.3% of the market during the forecast years, 2021-2028 owing to the increase in outsourcing of both noncore and core premedical CRO research and studies. This led to the increase in adoption in tests for toxicology. However, the bioanalysis & DMPK studies division is expecting the fastest CAGR of the 3 segments in this market owing to the increase in demand of pharmacokinetic services used in bioanalysis used in IND-enabling studies.
 

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 Biopharmaceutical companies segment is anticipating to register a major market share
Based on end-users, the global premedical CRO market is divided into biopharmaceutical companies, government & academic institutes, and medical device companies. The biopharmaceutical companies segment is expected to constitute a major share of 81.5% of the market during the forecast years, 2021-2028 owing to the rising trend of subcontracting end-to-end services between biopharmaceutical companies, particularly the small and middle sized organizations that has limited expertise in the preliminary phase of the development of drugs. However, the government & academic institutes are anticipating the fastest growth during this forecast period however, as they have started to outsource themselves especially targeting developing economies by giving better incentives than the biopharmaceutical companies.

 North America is anticipated to dominate the market
On the basis of regions, the global premedical CRO market is categorized as Asia Pacific, North America, Latin America, Europe and Middle East & Africa. The market in North America is expected to expand at an impressive and healthy CAGR during the forecast period, 2021-2028, currently sitting at 48.1% of the market share as of 2020. This regional market growth can be attributed to the growing research & development expenditure along with the rising in adoption of the latest technology. The demand of preclinical CRO services is increasing rapidly in this region due to the frequent occurrences of chronic diseases. However, the market in Asia Pacific is anticipated to expand at a high CAGR during the forecast period as they have prioritized the cost-efficiency perspective of premedical CROs combined with their growing population.
 

Segments

Segments Covered in the Report
The global premedical CRO market size has been segmented in terms of

Services

• Bioanalysis & DMPK Studies
• Toxicology Testing
• Others

End-Users

• Biopharmaceutical Companies
• Government & Academic Institutes
• Medical Device Companies

Regions

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Innoplexus
• Envigo Corporation
• MPI Research
• Eurofins Scientific
• PRA Health Sciences Inc
• Wuxi AppTec
• Medpace Inc
• Pharmaceutical Product Development LLC
• PARAXEL International Corporation
• ICON Plc
• Laboratory Corporation of America Inc

Competitive Landscape

Major players competing in the global premedical CRO market are Innoplexus; Envigo Corporation; MPI Research; Eurofins Scientific; PRA Health Sciences Inc; Wuxi AppTec; Medpace Inc; Pharmaceutical Product Development LLC: PARAXEL International Corporation; ICON Plc; and Laboratory Corporation of America Inc. These market players are involved in several business strategies such as mergers, acquisitions partnerships, collaborations, capacity expansion, and product launches to enhance their market shares.

For instance, in September 2020, PARAXEL International Corporation entered into a collaboration with Innoplexus for the launching of COVID-19 Clearinghouse, a comprehensive resource found online for the scientists, patients and researchers sponsoring direct access to publications, links and datasets for active global clinical trials and the news related to the COVID-19 pandemic. Meanwhile, the major players in this market are simultaneously looking to innovate the current product they have in order to get a competitive edge in the market.