Preclinical CRO Market To Witness Significant Growth Due To Rising R&D Expenditure For Drug Development Till 2025: Grand View Research, Inc.

Grand View Research, Inc. – Market Research And Consulting.
According to new report published by Grand View Research, the global preclinical CRO market is anticipated to reach USD 6.6 billion by 2025. Increasing focus of life science companies on their core facilities can propel the market over the forecast period.

According to a report published by Grand View Research, Inc.; the preclinical CRO market is estimated to reach a valuation of around USD 6.6 billion by 2025. Growing R&D expenditure for early stage and late-stage drug development, rise in number of drugs in preclinical phase, and increasing focus of life science companies on their core facilities can propel the market over the forecast period (2014 to 2025). The market is projected to exhibit a 8.3% CAGR over the forecast period due to rise in R&D expenditure for drug development. Growing drug pipeline for cancer and autoimmune diseases is expected to boost market demand in the coming years.

The outsourcing model is mainly adopted by life science companies to reduce the total R&D expenses required for drug discovery and development, which is likely to increase the demand for quality contract research organizations (CROs). Rising preclinical pipeline for cancer and orphan diseases is expected to drive the demand for outsourcing in preclinical trials. Approximately, 50% failures cases in preclinical phase are caused due to issues at the time of nonclinical toxicology testing and 5.2% failure rates are due to issues in preclinical pharmacokinetic testing, according to a report by the Servier Research Institute.

High rate of failure in toxicology tests is likely to induce demand for preclinical CROs. Improving capabilities of these CROs is also contributing towards the market growth and encouraging outsourcing of preclinical services to CROs. However, improvement in quality standards is likely to overcome the challenge of standardization. The outsource vendors are increasingly taking efforts to adhere to the international standards set by various regulatory authorities including European Medicines Agency (EMA) and the U.S. Food and Drug Administration (FDA). This is also expected to create positive outlook for the market.

Full Research Report On Preclinical CRO Market Analysis: https://www.grandviewresearch.com/industry-analysis/preclinical-cro-market

U.S. preclinical CRO market, by service, 2014 - 2025 (USD Billion)

The worldwide preclinical CRO market can be segmented on the basis of service, end-use, and region. Based on service, the market can be split into toxicology testing, bioanalysis and DMPK studies, and other preclinical services. As per end-use, the market can be fragmented into biopharmaceutical companies, government and academic institutes, and medical device companies.

Geographically, the market can be divided into North America, Europe, Asia Pacific, Latin America, Middle East and Africa (MEA).  North America is likely to dominate the market during the forecast period. This can be attributed to existence of early stage development CROs, improved quality of work, economic stability, developed scientific experience and acumen, and better logistics in the region. Approval of the 21st Century Cures bill in the U.S. has spurred the approval process for introduction of breakthrough drugs and medical devices. These updates in the approval process are anticipated to foster innovation and also expected to boost demand for preclinical services, which in turn can boost market growth.  

In the United States, toxicology testing is a key aspect of Investigational New Drug (IND)-enabling studies. Thus, rise in subcontracting of noncore preclinical studies to CROs and the improving capabilities of CROs to provide further value add services are likely to drive the market growth in the coming years.

View More Reports Of This Category By Grand View Research At: https://www.grandviewresearch.com/industry/pharmaceuticals

Global preclinical CRO market, by region, 2016 (%)

Asia Pacific is likely to showcase robust growth in the coming years. Changing business model of MNCs outsourcing and growing R&D expenditure and availability of cost-effective CRO agencies in countries like China and India have boost the preclinical outsourcing trend in the region.

Prominent players operating in the market include PRA Health Science, Inc.; Charles River Laboratories International, Inc.; Medpace, Inc.; Pharmaceutical Product Development, LLC.; and Laboratory Corporation of America.

Many life science firms are shifting from a functional to outsourcing model. This is likely to boost the demand for large CROs which provide end-to-end preclinical services. For instance, AstraZeneca extended its partnership with Charles River Laboratories for safety assessment, development of orphan drugs, and pharmacokinetic services. Rising trend of outsourcing end-to-end services in biopharmaceutical companies is likely to boost the market growth. Demand for this service is extremely high across small and mid-size biopharmaceutical firms that lack sufficient inhouse-expertise required for preclinical phase of drug development.

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About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.

For more information: www.grandviewresearch.com

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