Increasing Prevalence of Chronic Diseases to Augment Growth of the Specialty CRO's Market

 

Specialty CROs Market

A contract research organization (CRO) is a specialized business that provides specialized support to the biotechnology, pharmaceutical, and health science sectors in the form of contract clinical research services on a contract basis. CRO's are generally formed as an association between two or more pharmaceutical corporations, who mutually decide to engage in joint research and development activities to develop drugs against various fatal diseases and also to find methods of handling such fatal diseases. CRO's play an important role in resolving the problem of development of essential medicines and also in finding alternate routes of delivery of drugs. Specialty CRO's helps biotech and pharmaceutical firms to launch novel therapies in the quickest possible time.

Market Dynamics:

Increasing research and development (R&D) activities and growing R&D expenditures are expected to propel the growth of the specialty CRO's market. For instance, in March 2021, Innoforce and dMed, a clinical CRO, signed an agreement to establish a partnership to identify, assess, and collaborate on the development of clinical-stage therapeutics.

Moreover, the increasing prevalence of chronic diseases, such as diabetes, cancer, and heart disease, worldwide is expected to augment the specialty CRO's market growth. According to World Health Organization (WHO), chronic diseases are the leading causes of death and disability worldwide.

Furthermore, increasing demand of outsourcing analytical testing and clinical trial services and increase in clinical trials is also expected to fuel the market growth. However, regulatory pressure on CROs and rising instances of drug failure during clinical trial phase are expected to restrain the specialty CRO's market growth.

Competitive Analysis:

Major players operating in the specialty CRO's market are Aclires, Velesco Pharmaceutical Services, SAGE Labs, Gateway Pharmacology Laboratories, DaVita Clinical Research, David H Murdock Research Institute, Afraxis, DATATRAK International, Accelovance, Cytespace Africa, Acquipharma, Profil Abiogenesis Clinpharm, Charles River Laboratories, and Accell Clinical Research.

Major players in the market are adopting various inorganic growth strategies, such as merger and acquisition, to strengthen their market position. For instance, in March 2021, NAMSA (North American Science Associates, Inc.) announced its acquisition of American Preclinical Services (APS), a full service preclinical CRO. This purchase follows NAMSA’s acquisition of Syntactx, New York-based CRO, in January 2021.

In March 2021, PsyBio Therapeutics initiated pilot scale-up of its proprietary biosynthetic formulation of psilocybin in collaboration with Albany Molecular Research Inc.

In February 2021, Ingenuity BioScience and Somru BioScience announced the establishment of an innovation-centric bio-analytical laboratory in Ahmedabad, India.