CRO Market Poses a Number of Challenges

A number of challenges and opportunities are being presented by the CRO market and would certainly aid the biotechnology sector in achieving objectives with services that would cut down the cost and time for marketing drugs. CROs are all set to cash in on the opportunities presented by this sector and lead to increased share in R&D spending. We are witnessing a trend where a number of biotech companies are outsourcing their R&D to CROs due to factors such as increasing drug development cost, lack of adequate skill and strict regulatory regime. CROs are gaining due to the fact that biotech companies have investments which are smaller in development infrastructure when compared with pharmaceutical companies. Barath Shankar S., Research Analyst, Frost & Sullivan said: The increase in globalization of trials is likely to result in several CROs expanding across geographical boundaries and augmenting their capacity to cater to this opportunity. As the market continues to enlarge and inorganic growth emerges as a critical component of this expansion, the trend of deepening focus on core expertise is becoming crucial. Though CRO services are increasing but we are witnessing a trend where commoditization is on the rise due to similar services being offered.

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