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Key Therapeutic Areas to Remain Strongest Drivers of CRO Revenue Growth in the United States Finds Frost & Sullivan - Strong investments from Pharmaceutical and Biotechnology companies
Key Therapeutic Areas to Remain Strongest Drivers of CRO Revenue Growth in the United States Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Mountain View, CA, United States, 2009/09/21 - Strong investments from Pharmaceutical and Biotechnology companies.

   
 
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The economic downturn and reduction in funding for early stage projects is likely to result in a decline in growth rate across major therapeutic segments in the short-to-medium term. However, due to this lack of funding, it is unlikely that pharmaceutical and biotechnology companies will invest in in-house capabilities to conduct clinical trials. This is set to benefit contract research organizations (CROs) in obtaining continued business from this segment. Despite possible defaults on payments for projects from a few companies that could affect CROs in the short-term, oncology, central nervous system, and cardiovascular are expected to remain as key therapeutic areas.

New analysis from Frost & Sullivan (pharma.frost.com), U.S. CRO Markets - Key Therapeutic Areas, finds that the market earned revenues of over $10.91 billion in 2009 and estimates this to reach $22.87 billion in 2015. The markets covered in this research include preclinical to phase IV CRO services for pharmaceuticals and biotechnology.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an email to Johanna Haynes at johanna.haynes[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

"The most interesting aspect of CRO market growth has been that of new sponsors – increasingly biotechnology companies and specialty pharmaceutical companies – with a demand for full services spanning the pre-clinical to the post-commercialization stage," says Frost & Sullivan Senior Industry Analyst Barath Shankar Subramanian. "This could be attributed to the limited development infrastructure with sponsors, leading to CROs being viewed as strategic partners.."

Earlier, the trend in the market used to be start-up pharmaceutical and biotechnology companies out-licensing their product beyond phase I/II or getting acquired, which posed a great deal of uncertainty over the future of the project. Nowadays, companies are increasingly retaining products within their pipeline and continuing to take them closer to the market through CROs, thereby enhancing the value of the products and the company.

Despite optimistic forecasts for the market, a growing divide between patient access and studies is threatening productivity. Trials continue to become increasingly complex and global, resulting in intense competition for access to patients, new investigators, and innovative studies.

The divide between patient access and studies has been rising consistently over the past decade and could affect future studies. For studies that depend heavily on the emerging markets, this could have a negative impact on productivity by lengthening trial times. In addition, an underlying churn in existing investigators is further widening this divide.

"CROs and sponsors are looking at innovative ways to increase access to patients by partnering with patient recruitment firms," concludes Subramanian. "Service providers are also outsourcing large-scale global trials through the expanded reach of CRO partners, enabling access to an extensive patient pool."

U.S. CRO Markets - Key Therapeutic Areas is part of the Pharmaceuticals & Biotechnology Growth Partnership Services program, which also includes research in the following markets: U.S. Contract Research Organizations Markets; Global CRO Spending Trends; Global Biopharmaceutical Contract Manufacturing Market; and Strategic Analysis of Opportunities in the CRO Market – Phase 0. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents.

U.S. CRO Markets - Key Therapeutic Areas / N579

 
 
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Key Therapeutic Areas to Remain Strongest Drivers of CRO Revenue Growth in the United States Finds Frost & Sullivan

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Contact: Johanna Haynes 
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