New York, NY (PRWEB) May 27, 2014
The market for outsourced drug discovery services is robust with an optimistic outlook going forward, according to Kalorama information. The healthcare market research firm said the outsourcing in drug discovery market reached $12.8 billion in 2013, which increased about 15% from $11.1 billion in 2012. The global drug discovery outsourcing market is expected to continue a similar growth pattern in the next five years, according to the report, “Outsourcing in Drug Discovery: The Contract Research Organization (CRO) Market, 6th Edition.”
The report indicates that global pharmaceutical sales growth has slowed due to the prevalence of lower-cost generics, the sustained impact of the global economic slowdown that began in 2008, and patent expirations—particularly of blockbuster drugs. This is a driver of discovery efforts and puts pressure on firms to move more work out of the firm.
"Drug discovery is essential right now," said Bruce Carlson, Publisher of Kalorama Information. "Between 2009 and 2015, the pharmaceutical industry is facing the most abrupt revenue decline in history as 18 of the top 20 bestselling drugs will lose patent protection."
The report said that drug discovery has become increasing complex since the 1990s as a result of advances in molecular biology and the emergence of new-generation biological therapies. These advances plus the emergence of new technologies have made it unsustainable for companies to undertake all drug discovery functions in-house. Issues over loss of control, intellectual property and confidentiality remain a concern for some companies, contributing to their reluctance to outsource more of their core drug discovery functions. Kalorama's report details these factors.
"The pharmaceutical industry has a long history of holding close to the vest its core functions, such as drug discovery," said Bruce Carlson, Publisher of Kalorama Information. "However over the past two decades, this pattern has begun to change as companies outsource more drug discovery projects."
Kalorama Information's report, “Outsourcing in Drug Discovery: The Contract Research Organization (CRO) Market, 6th Edition” contains more information on the components of the outsourcing operation that are growing the fastest. The report also describes the types of entities that are taking on outsourcing, provides geographic breakouts of revenues, and profiles key players. The report can be found at http://www.kaloramainformation.com/Outsourcing-Drug-Discovery-8136124/