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The global preclinical CRO market size was valued at USD 4.87 billion in 2021 and is projected to reach USD 9.67 billion by 2030, expanding at a CAGR of 7.9%. The growth in outsourcing opportunities for preclinical CRO services, in addition to early research activities during the drug discovery process, are two major factors primarily determining the market preclinical CRO market growth. The market is also predicted to witness profitable growth in the forthcoming years.
The development and introduction of new drugs entering the preclinical phase are expected to boost market growth during the forecast years. The COVID-19 pandemic had a negative impact on the preclinical CRO market for a temporary period due to the implementation of a worldwide lockdown that led to a shutdown of the research sites and new trials put to hold. However, lifesaving drugs are being developed and brought to the market at a swift pace currently.
The ever-ascending prevalence of chronic diseases, especially among the geriatric population is a key factor influencing organizations to invest more in this industry and develop drugs for the prevention of such diseases. Since the pandemic, major pharmaceutical and biopharmaceutical companies have continued to invest in the development of novel drugs and devices along with increasing their R&D efficiencies. A wide range of organizations around the globe have made significant investments and funding for developing medical devices and therapeutics for COVID-19.
The market is undergoing several remarkable expansions with a series of mergers and acquisitions resulting in better international reach of larger companies, in addition to full-service capabilities improvement. For example, WuXi AppTec in 2019 acquired Pharmapace. Furthermore, mid-sized companies and smaller contract research organizations are focusing majorly on niche sectors besides providing their sponsors with a personalized approach. Multiple companies are currently engaging in research and developmental activities for new drugs hence, outsourcing the activities to launch efficient CRO services in the market. This indirectly provides a constructive atmosphere for the market players to engage in joint ventures owing to the preference of the sponsors to maximize their benefits.
The preclinical CRO services’ strict regulatory policies are a major drawback to the overall growth of the market. However, the process of drug approval over the years has been significantly changed and modified by the Food and Drug Administration (FDA). Recently in the U.S., the 21st Century Cures bill was passed to quicken the approval process for the launch of breakthrough drugs and medical devices. These changes in approval processes are anticipated to drive market growth with innovation and increase demand for preclinical services.
Research Support Specialist, USA