Here's how the Leading Players are Dominating Global Clinical Trial Supplies Market

2022-05-04 04:43:46 UTC | Healthcare & Pharmaceuticals
Here's how the Leading Players are Dominating Global Clinical Trial Supplies Market
DRIVER: Increasing R&D expenditure of pharmaceutical and biopharmaceutical companies

The pharmaceutical and biopharmaceutical sector is one of the biggest R&D spenders globally. In the last decade, the R&D expenditure of pharmaceutical and biopharmaceutical companies has risen considerably. This is expected to lead to a rise in the number of clinical trials conducted globally. According to the Pharmaceutical Research and Manufacturers of America (PhRMA), PhRMA members have invested significantly in drug development efforts. Companies in the market are actively looking to support R&D efforts. A further increase in R&D spending in the coming years will significantly boost drug discovery and development activities, thus driving the demand for clinical trial supplies.

Projected Growth in Revenue Generation:

The global clinical trial supplies market is projected to reach USD 2.9 billion by 2026 from USD 1.9 billion in 2021, at a CAGR of 8.5% during the forecast period of 2021 to 2026.

RESTRAINTS: High cost of drug development

Drug discovery and development involve high costs due to the high attrition rate of drug candidates in development. Since R&D for some rare diseases is very challenging and requires a specific group of people to conduct a clinical trial, drug R&D processes can be prone to failure.

Only 7 out of 100 cancer drugs that reach the clinical testing phase end up gaining regulatory approval; most drugs fail long before this point. From drug discovery through FDA approval, developing a new medicine, on average, takes 10–15 years and costs USD 2.6 billion. Less than 12% of candidates that make it to Phase I clinical trials are approved by the FDA. This is a key factor limiting the growth of the market.

OPPORTUNITY: R&D investments offer significant opportunities for the market

North America and Europe, traditionally the major hubs for clinical trials, are facing challenges in terms of trial costs and patient pools. Recent health reforms in the US, the patent expiry of blockbuster drugs, and the global economic slowdown have affected the profitability of pharmaceutical companies. This is compelling several pharmaceutical companies to look for opportunities in emerging countries across the APAC, such as India, Singapore, South Korea, and China, which offer advantages such as reduced costs and easy access to a large heterogeneous patient population.

Global Key Players:

The global clinical trial supplies market is competitive. Prominent players operating in the global clinical trial supplies market include Catalent, Inc. (US), Thermo Fisher Scientific (US), Piramal Pharma Solutions (India), Parexel International Corporation (US), and UDG Healthcare (Ireland). 

Different Growth Strategies Adopted by Them:

The key players in this market are increasingly focusing on strategic expansions, partnerships, and product approvals to expand their manufacturing capabilities and increase market presence.

Find Out the Detailed Information@

Catalent offers delivery technologies as well as development, manufacturing, and clinical supply solutions for drugs, biologics, cell and gene therapies, and consumer health products. The company operates through four business segments—Softgel and Oral Technologies, Biologics, Clinical Supply Services, and Oral and Specialty Delivery. The Clinical Supply Services segment is further categorized into Forecasting and Planning, Packaging Services, Comparator Sourcing, and Distribution and Logistics. 

The Clinical Supply Services segment provides manufacturing, packaging, storage, distribution, and inventory management for drugs and biologics in clinical trials. This includes encapsulation where needed, supplying placebos, comparator drug procurement, clinical packages and kits for physicians and patients, inventory management, investigator kit ordering and fulfillment, and return supply reconciliation and reporting. Catalent operates in countries across North America, Europe, Asia Pacific, and Latin America. It has a strong presence in China, Japan, Italy, the UK, France, Belgium, Germany, Argentina, Brazil, Uruguay, the US, and Canada.

Parexel provides a suite of biopharmaceutical services that helps clients across the globe progress from scientific discoveries to new treatments. The company provides solutions for clinical development, outsourcing services, consulting, medical affairs, real-world data sciences, and medical communications. In the clinical trial supplies market, the company provides services like clinical trial supply management, laboratory logistics, biological sample lifecycle management services, ancillary supplies, and cold chain logistics. Parexel operates in the US and UK.