It can be challenging for businesses to run a clinical trial, particularly with the eclectic resource requirements and numerous regulations. As healthcare legislation continues to change, the barriers are only going to increase. This has lead the growth of Contract Research Organizations, which are also known as CROs. In many ways, these are organizations that are specifically designed to carry out clinical trials in a time-efficient and cost-effective manner. Furthermore, these organizations are rising in popularity. A report was recently published that showed the growth of CROs. The forecast for CROs in the coming years also looks promising.
What is a CRO?
The goal of Contract Research Organizations are entities that provide helpful solutions to complicated clinical trials. Some of the examples of clinical studies that are handled by CROs include drug discovery solutions, central laboratory functions, data management services, toxicology studies, biological statistics, and numerous regulatory affairs. Carrying out a clinical trial in any of these fields is cost-intensive. It might also ask companies to acquire unique resources that will only be used for that specific trial. To help with this matter, sponsors can partner with CROs who can carry out the functions of the clinical trial on behalf of the sponsor.
The Market Growth and Forecast of Contract Research Organizations
A report was issued regarding the global market for clinical trial services related to the outsourcing of pharmaceuticals and biotechnology. During the past few years, the industry has been growing at about 10 percent per year. This dates back to 2017. In 2020 and 2021, the outsourcing of clinical trials to CROs is forecast to increase to 12 percent. Already, this market is valued at close to $45 billion. The growth rate has been forecasted to accelerate in the coming years. This highlights the growing popularity of outsourcing clinical trials to CROs.
Why have Contract Research Organizations Been Growing?
There are a number of reasons why CROs have been growing so quickly over the past few years. First, there has been a declining growth in the pharmaceutical industry recently. This industry used to enjoy double-digit growth rates but these have now declined to single-digit growth rates. The same can be said of biotechnology companies. This decline largely may have to do with major issues facing the pharmaceutical industry today, such as the opioid epidemic.
One of the side effects of slowing growth in these industries has been the growth of CROs. Pharmaceutical companies and biotechnology companies have been looking for ways to reduce their overhead costs when it comes to drug and technology research and development. This has led to the growth of biotech and pharmaceutical companies outsourcing their clinical trials to CROs. Furthermore, with the rising costs of drug development, CROs are expected to grow even more. Right now, the average cost of developing a new drug costs about $2 billion on average. In order to reduce this cost, many companies are partnering with Contract Research Organizations on a regular basis.
CROs Can Provide Assistance at Every Phase
CROs can provide assistance at every stage of drug development. This ranges from drug discovery to preclinical studies and the numerous phases involved in clinical trials. CROs are able to handle all of the regulatory requirements that come with running clinical trials. Pharmaceutical and biotechnology companies are discovering the benefits of partnering with a Contract Research Organization. With the numerous advantages of partnering with a CRO, this market is primed to grow in the future. CROs are going to play a major role in the advancement of healthcare technology in the years to come.