The Top 10 Contract Research Organizations: Positioning, performance and SWOT analyses

Cost containment and regulatory pressures within the pharma industry are driving R&D outsourcing across the globe. Clinical obstacles to approval have become more significant due to the growing availability of existing generic treatments, and the trend to adopt Health Economics Outcomes Research (HEOR) assessments is increasing the complexity of clinical research. As a result, the scope of the CRO industry is expanding, and the global market is predicted to value $35bn by 2013.

‘The Top 10 Contract Research Organizations’ is a report examines the competitive landscape of the global CRO industry. The latest key issues and evolving business models in the CRO market are identified and the leading companies in this sector are profiled in detail. For each of the top 10 CRO companies, this report provides a detailed examination of financial performance by business segment and growth strategies in the form of key acquisitions and divestments. The opportunities and threats facing each of these leading players are also assessed. This report also examines the size and growth of the global CRO industry, with analysis of major market drivers and trends in CRO destinations.

Key Findings

The global CRO industry valued $18bn in 2008, an increase of 14% over 2007. The CRO market will grow at an annual rate of 14% over the 2009-13 period.

Quintiles leads the global CRO market having accrued a market share of 16.9% in 2007, equivalent to sales of $2.7bn. There are over 1,100 players in the industry, and the top 10 players only accounted for 56.1% of the global market in 2007.

The fragmented structure of the CRO industry has led to an increase in strategic alliances, acquisitions, joint-ventures and other partnership deals as companies attempt to expand their service offerings and geographical presence.

Covance is the second largest global CRO, having registered revenues of $1.5bn 2007, representing a market share of 9.7%. Covance is building global capabilities, with many clinical trials now being conducted in emerging markets.

Biomarkers have the potential to become an integral part of clinical research, after the FDA recommended their usage throughout clinical trials to demonstrate desired clinical activity and safety.

Use this report to...

• Compare the performances of the top 10 CRO companies across key business segments with this report’s analysis of Quintiles, Covance, Pharmal Product

• Development, Charles River Labs, ICON, Parexel, MDS, Kendle, PharmaNet

• Development and PRA International

• Identify the market dynamics of the global CRO industry over the 2007-08 period, discover which emerging markets are becoming the CRO destinations of the future and understand the latest industrial trends across the UK, Japan, France, Germany,Italy, Spain and the US.

• Assess the future prospects of the top 10 CRO companies with this report’s analysis of each firm’s strengths, weaknesses, opportunities and threats, in addition to an examination of growth strategies via acquisitions and divestments.

• Measure the progress of other leading CRO companies by evaluating the financial performances of Aptuit, Life Sciences Research, Omnicare, SGS, CMIC, WuXi

• Pharmatech, Galapagos (Biofocus), LAB Research, United BioSource and Bio-Imaging.

Explore issues including...

Industrial consolidation. Globalization and the need to provide a wider breadth of services to meet customer needs across the drug development process is driving consolidation.

Budget pressures for biopharma. The economic slowdown has limited the availability of funds for ‘risky’ businesses such as biotechnology. This has led to many projects being suspended.

Consolidation in client industry. Consolidation in the pharma industry has led to the creation of larger entities with better bargaining power. This is beginning to impact upon contract payment terms.

Demand for CRO services. Regulatory pressures are creating a need for larger trials and increasing development timelines. Regulatory delays and phase IV monitoring requirements are also fuelling demand for CRO services.

Influx of private equity players. A number of factors are driving the participation of private equity players, including the nature of the service-based business model and recent shifts in the CRO industry led by globalization and the demand for full-service offerings.

Discover...

• Which countries are attracting offshore investment?

• What are the trends in the global CRO industry?

• Who are the top 20 players in the industry?

• What is the market share of each of the global leaders by company?

• What are the drivers and resistors of growth in the CRO industry ?

• How is consolidation expected to change the dynamics of the industry?

• What are the key strategies of the leading CRO companies?

• What are the strengths and weaknesses of the industry’s top players?

• Which phases of clinical research are driving the industry?