Stronger corporate profit has stimulated stronger private investment in clinical trials.
New York, NY (PRWEB) November 07, 2014
The Clinical Trial Support Services industry provides preclinical trial preparation work, tracks and records results and data, as well as prepares information for regulatory submission and data storage. Although government funding has been volatile due to fluctuating economic conditions in the public and private sectors, overall spending on healthcare has been strong over the past five years. “Industry services relied on government spending during the beginning of the five-year period, as collapsing corporate profit caused private enterprises to reduce expenditure on research and development,” according to IBISWorld Industry Analyst Jeremy Edwards. At the same time, government agencies increasingly invested in Medicare, Medicaid and funding for universities to help soften the impact of declining private investment.
More recently, stronger corporate profit stimulated stronger private investment in clinical trials and, therefore, providers of support services have become increasingly reliant on the private sector. Meanwhile, government austerity measures hurt industry revenue as the federal government sought to reduce debt; the 2013 government sequester reduced federal research and development budgets. “Nonetheless, strong investment in clinical studies for oncology and medical devices coupled with increased requirements for trial registration have helped boost demand for clinical trial support services,” says Edwards. As a result, the industry is projected to grow at an average annual rate of 4.2% to $1.0 billion over the five years to 2014, including expected growth of 3.0% in 2014, supported by improving federal funding for Medicare and Medicaid and a growing number of people with private health insurance.
Over the next five years, the Clinical Trial Support Services industry is expected to maintain growth, benefiting from greater stability due to consistent funding from private and public sources. Private businesses are expected to increase their research and development budgets as stronger profit encourages companies to invest in product development, including brand name pharmaceutical manufacturing companies seeking to create new drugs following the expiration of major patents. Cancer treatment products will continue to be the leading driver of new drugs and are expected to increase demand for support services.
For more information, visit IBISWorld’s Clinical Trial Support Services in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in this industry provide medical clinical trial services. Typically, industry operators will provide preclinical trial preparation work, track and record results, and prepare data for regulatory submission and data storage.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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