Contract Research Organization Industry Purchasing Intelligence Report: Increased Demand for Decentralized Clinical Trial Design Post COVID-19 to Drive Supply Needs


SAN FRANCISCO, December 2, 2021 / PRNewswire / – Global CRO Market Expected to Grow at 6.4% CAGR from 2020 to 2025 due to the growing global need for drug development and pharmaceutical giants’ investments in R&D, due to the expiration of successful drug patents. The COVID-19 pandemic has increased the adoption of decentralized clinical trials due to its critical benefits of virtual contactless trials and improved patient and physician experience. Sponsors of clinical trials are constantly trying to speed up clinical trials and improve the experience for patients and physicians. A decentralized trial emerged as a critical solution. This is about bringing an increasing share of the activities of a trial to patients instead of using the traditional method of bringing patients to a trial site. As healthcare system resources were consumed by COVID-19-related care and travel became limited by physical distance, patient access to trial sites was reduced by 80%. The number of monthly trials decreased by 50% compared to january 2020 at april 2020, and 60% of CROs reported a significant reduction in testing activities in May 2020. Faced with such disruptions, promoters quickly mobilized to preserve the continuity of care and data integrity, by adopting remote consent and patient monitoring, videoconference assessments and home bloodletting.

Many large CROs have already started adopting decentralized clinical trials. Parexel is at the forefront of the trend with more than 160 decentralized clinical trials and has implemented around 200 remote patient engagement strategies (patient recruitment and retention platforms, e-visits / video dosing regimens and projects patient information) incorporated into trials.

Contract Research Organization Industry Purchasing Intelligence Report, By Grand View Research, deepens the following industry knowledge:

  • Pharmaceutical companies prefer to outsource clinical trial activities to control R&D spending, thus boosting growth of CRO industry – CROs have diverse expertise in conducting clinical trials across multiple geographic sites and developing drugs for specific procedures and treatments. CROs currently aim to develop innovative procurement and procurement methods to optimize the cost of clinical trials in order to increase profits.
  • With the number of mergers and acquisitions and strategic partnerships underway, the global CRO industry is heading for consolidation The increased number of mergers and acquisitions within the CRO industry has allowed industry participants to combine their expertise and improve the quality of service. Such strategic collaborations will allow established companies in the industry to increase their reach and penetrate specific regional markets that were previously served by smaller players, and, at the same time, keep costs under control.
  • Suppliers largely prefer approved supplier operating models to reduce risk and improve the potential for value creation Suppliers are expected to move from a generic to exclusive service offering in the future.

Contract Research Organization Industry Cost Intelligence – Key Components:

Grand View Research has identified the following key cost elements for using CRO services:

  • Clinical procedure
    • Regulatory Affairs
    • Drug safety management
    • Drug logistics
    • Logistics of biological samples
    • Logistics of clinical supplies
    • Medical writing
    • Project management
    • Quality control
    • Passage fees
  • Site identification and selection
  • Site contracts and payments
  • Launch and activation of the site
  • Site administration
  • On-site monitoring
  • Site closure
  • Patient recruitment
  • Patient management
  • Study files / Document management
  • Data management
  • Statistics
  • Communication with the CRO / central sponsor
  • O&M Insurance
  • Other costs
  • Taxes
  • Profit

The main cost element of a CRO is the clinical procedure and accounts for over 45% of the total cost of the service.

CRO Industry Supplier Intelligence – Capability Based Ranking and Selection Criteria with Weighting:

Operational capacities –

  • Years of service – 15%
  • Geographic presence of services – 35%
  • Employee strength – 15%
  • Revenue generated – 15%
  • Key customers – 12%
  • Certifications – 8%

Functional capacities –

  • Patient care – 40%
    • Patient recruitment
    • Patient retention
    • Patient monitoring
    • Others
  • Site management – 40%
    • Recruitment site
    • Site conservation
    • Construction site surveillance
    • Others
  • Others – 20%
    • Recruitment of doctors
    • Data management
    • Regulatory affairs management

List of major industry suppliers to contract research organizations:

  • Covance (Lab. Corp.)
  • Syneos Health
  • Parexel
  • PRA Health Sciences
  • PPD
  • Charles River
  • ICON
  • Wuxi AppTec
  • MedPace

Additional services offered by Grand View Research:

  • Cost analysis – In the CRO Industry Procurement Intelligence report, we estimated and forecast the prices of key cost components while benefiting from the services of CROs. Clinical procedures (drug logistics, medical writing, project management, quality control, drug safety management, etc.) are the most important cost component of CRO services. It represented over 50% of the overall cost of CRO services. The cost of clinical procedural services is primarily determined by the salary of key personnel and the therapeutic area.
  • Comparative rate analysis – The geographic location where the clinical trial is conducted plays a major role in the price benchmarking analysis of a CRO service. In our research, we analyzed the rates of clinical trials in oncology, as it is the most common type of clinical trial across the world. For example, the cost of the phase 3 clinical trial in breast cancer in India and China is 90% lower than the cost of clinical trials in the US and UK. Conducting clinical trials through CRO in Western European and North American countries requires double the cost of conducting clinical trials in APAC.
  • Comparative salary analysis – Our research indicates that IQVIA Principal Investigators and Clinical Research Coordinators earn salaries 10-15% higher than Principal Investigators and Clinical Research Coordinators at Covance and Syneos Health. However, Syneos Health and Covance have a 10% year-over-year increase from IQVIA’s 7-8%. We also found that IQVIA and Covance offer Principal Investigators 36% higher bonuses than Syneos Health.
  • Supplier newsletter – It is difficult for any organization to constantly keep up with the latest developments in their supplier landscape. Our newsletter service helps them stay up to date, avoid any supply chain disruption they might face, and keep track of the latest innovations from suppliers. Outsourcing these activities helps customers focus on their core offerings.

A smart and efficient supply chain is essential for the growth of any organization. Grand View Research’s Pipeline division provides in-depth insight into every aspect of the supply chain, which helps make efficient sourcing decisions.

Our services include (without limitation):

  • Market intelligence involving – market size and forecast, growth factors and driving trends
  • Price and Cost Intelligence – adopted pricing models for the category, total cost of ownership
  • Vendor insight – a rich insight into the vendor landscape and identifies vendors that dominate, emerge, bask and specialize
  • Sourcing / Procurement Intelligence – industry best practices, identification of standard KPIs and SLAs, peer review, negotiation strategies to be used with suppliers and countries best suited for sourcing to minimize disruption in the chain supply

Browse Grand View Research’s Collection of Purchasing Intelligence Studies:

  • Legal Process Outsourcing Industry Procurement Intelligence ReportThe global Legal Process Outsourcing (LPO) market is expected to experience sustainable growth, with a CAGR of over 31% from 2020 to 2025, as large companies especially outsource their non-core business activities to third-party service providers for focus more on their core business while saving the costs incurred on employing an in-house legal team.
  • Catering / Cafeteria Industry Purchasing Intelligence Report – The Global Catering Services Market Size has been estimated to be $ 540 million in 2020 and is expected to register a CAGR of 4.5% from 2020 to 2025. The COVID-19 pandemic has caused a major market disruption, banning all major public events and enforcing social distancing standards. This led to the companies going out of business which impacted the restaurant services market.
  • Blister Packaging Industry Purchasing Intelligence Report – The global blister packaging market is expected to grow at a CAGR of 7.4% from 2020 to 2025 owing to increasing demand for packaging in unit doses, short cycle drugs and a monitored dosing system to improve patient adherence.

About Grand View Research

Grand View Research, a United States-based market research and consulting company, provides syndicated and personalized research reports and consulting services. Checked in California and headquartered at San Francisco, the company has more than 425 analysts and consultants, adding more than 1,200 market research reports to its extensive database each year. These reports provide in-depth analysis of 46 industries in 25 major countries around the world. Using an interactive market intelligence platform, Grand View Research helps renowned Fortune 500 companies and academic institutes understand the global and regional business environment and assess opportunities as they arise.

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