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The contract research market will continue to consolidate even as the strategic partnerships with the pharma and biotech industry will continue to drive the market. The contract research outsourcing activity is expected to increase in the clinical trials stage. Emerging regions such as India, China, Latin America and Central and Eastern Europe will drive the market by providing cost advantage. The increasing compliance to international regulations and standards governing the market by these regions will support this trend. The market is driven by the increasing R&D expenditure and a strong need in the biopharmaceutical industry to improve R&D efficiency by cutting costs.

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The key challenges to the contract research outsourcing market are the current economic recession which has resulted in reduced demand especially from the biotech industry. The contract research organizations are also impacted by the increasing focus on safety of the drugs and recent cases of failure in clinical trials has led to an increase in concerns over quality. But, the contract research organizations are changing themselves according to the international standards with an aim to take care of the quality concerns of biopharmaceutical companies. Therefore, the quality concerns can be overcome and will have a small impact on the overall contract research outsourcing market.

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The leading players in this consolidated market continue to grow through expanding their services and emerging as end to end service providers with global presence. The major contract research organizations are active in the central nervous system (CNS), oncology and cardiovascular therapeutic areas and focusing on the unmet needs of the biopharmaceutical industry. The contract research organizations will continue to expand geographical presence and improve their capabilities in therapeutic areas such as oncology and CNS and also expand functional expertise through partnerships with other contract research organizations.

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