HEALTHCARE CONTRACT RESEARCH OUTSOURCING MARKET ANALYSIS

Market Challenges And Opportunities

Global Healthcare Contract Research Outsourcing Market- Driver

Increasing patent expirations

Increasing number of patent expirations is expected to aid in the growth of the global healthcare contract research outsourcing market. For instance, Boehringer Ingelheim’s Atrovent HFA (ipratropium hfa) used for the treatment of chronic obstructive pulmonary disease and AstraZeneca’s Bydureon (exenatide) used for the treatment of type 2 diabetes is expected to face patent expiration in May 2020 and October 2020, respectively.

Increasing prevalence of chronic illnesses

As the prevalence of chronic illnesses increases, the pressure on various biopharmaceutical companies to conduct research and development activities also increases. Thus, the market for global healthcare contract research outsourcing is increasing rapidly. For instance, according to an article published in 2022 by PubMed, a free search engine of biological databases and medical reports, the prevalence of self-reported chronic disease was 21 per 100 elderly persons in India in 2021 with 17% elderly suffering from chronic diseases in rural areas and 29% in urban areas.

Global Healthcare Contract Research Outsourcing Market - Impact of Coronavirus (COVID-19) Pandemic

Since the COVID-19 virus outbreak in December 2019, the disease spread to over 100 countries across the globe, and the World Health Organization declared it a public health emergency on January 30, 2020.

COVID-19 affected the economy in three main ways: by directly affecting the production and demand of drugs, by creating disruptions in distribution channels, and through its financial impact on firms and financial markets. Due to nationwide lockdowns, several countries such as China, India, Saudi Arabia, the U.A.E., Egypt, and others are facing problems with the transportation of drugs from one place to another.

However, the COVID-19 pandemic had a positive impact on the global healthcare contract research outsourcing market. This is because of the increased partnerships between biopharmaceutical companies to meet the shortage and demand of drugs. For instance, in July 2020, Piramal Critical Care (a subsidiary of Piramal Enterprises Limited), a producer of inhaled anesthetics and hospital generics, announced a strategic partnership with a U.S.-based pharmaceutical outsourcing facility, Medivant Healthcare to distribute single-dose injectable drugs in approved states for COVID-19 patients that had fallen short in supply.

Global Healthcare Contract Research Outsourcing Market: Restraint

Patient data privacy and security breach

A lack of direct supervision can present many patient data and information vulnerabilities, which can restrain the growth of the global healthcare contract research outsourcing market. For instance, on May 2023, the outsourcing firm and government healthcare contractor, Capita plc revealed that it incurred losses upto US$ 22 Mn from a cyber-attack in which some customer, supplier, and staff data was accessed by hackers. Drafting legally binding documents such as non-disclosure agreements and having them signed by all parties is an effective counterbalance to the above restraint.

Lack of control on quality on products

In-house production provides the company with ultimate control over the quality and the quantity of the products. Also, the company can easily change scope, adjust timelines, and increase/decrease volume based on the market demand. However, by outsourcing drug manufacturing, there is a risk of quality standards not being met, which, in turn, can hamper the brand name of the company. Choosing  a drug manufacturer with good experience and expertise in a particular market with a good track record, can serve as an effective counterbalance to the above restraint.

• Patient data privacy and security breach
• Delay in providing service