CRO Market Grows Significantly in 2012, with BRIC Regions Representing a Huge Untapped Opportunity

Wednesday 28 August 2013, Amsterdam

CRO Market Grows Significantly in 2012, with BRIC Regions Representing a Huge Untapped Opportunity
The total combined peer group revenue from Contract Research Organizations (CROs) increased by 10.2% year-to-year, from $12.4 billion in 2011 to $13.6 billion in 2012, driven mainly by greater demand for outsourced clinical services as drug makers look to contractors as a strategy to off-set the high-cost of bringing new therapies, states research and a consulting firm.

According to the company’s latest report, this growth in the CRO sector was largely fuelled by Quintiles, the market’s largest CRO, which independently contributed approximately $397 million to the $1.2 billion market increase. Quintiles’ revenue grew by 12.1% year-on-year to $3.7 billion in 2012, demonstrating considerably larger growth than its closest rival, Covance, which grew at 4% year-to-year to $2 billion. Quintiles was also effective at turning its order backlog into revenue, and winning new business contracts in emerging markets in Europe and Asia.

BRIC and other emerging regions saw a flood of investment and business activity from CROs in 2012. Combined peer group revenue in the BRIC regions increased 14.6%, above 2011 levels to $394 million in 2012. We expect this trend to continue into the near term, with CROs looking to increase their share in these lucrative markets.

Adam Dion,  Analyst covering Healthcare Industry Dynamics, says: “Asia, Central and South America, as well as Eastern Europe, have become attractive regions for pharmaceutical outsourcing as a result of easy access to a large number of treatments, low labor and manufacturing costs, and highly skilled medical workforces.”

“However, having an on-the-ground regulatory support and local infrastructure are key to implementing a successful product commercialization strategy in these emerging markets, particularly in China and India, where approval timelines are considerably protracted”, concludes Dion.
PharmaLeaders: CRO Benchmark Report - Financial Performance Benchmarking & Competitive Landscape Assessment of Leading CROs

PharmaLeaders: CRO Benchmark Report - Financial Performance Benchmarking & Competitive Landscape Assessment of Leading CROs

Publish date : August 2013
Report code : ASDR-73925
Pages : 173

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