CRO Industry Update
Contract Pharma – June 2009
The Pharmaceutical industry is undergoing significant change, from drug development philosophy and tightening of regulations, to restructuring, consolidation and mergers and acquisitions — all in the midst of an economic downturn. These changes impact CROs, the services they provide, from where, and for whom. The drop in R&D spending during the last few quarters has taken its toll on preclinical CROs, which are experiencing heavy discounting, delays, and cancellations. These changes may however present some opportunities for CROs. Although R&D spend has been down, many in the industry feel outsourcing will inevitably rise. Despite the financial crunch and a drop in early-stage research, a new report conducted by Business Insights states that the global CRO market is expected to grow 14% per year during the next three years, making contract research a $35 billion industry by 2013...read the full article.