Drug Development Core Lab Market Intelligence

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Are you looking for answers on Drug Development Core Lab category?

Are you looking for answers on Drug Development Core Lab category?

  • What are the key trends in Drug Development Core Lab category?
  • Am I paying the right price?
  • Am I working with the right supplier?
  • What are the major challenges and risks in Drug Development Core Lab industry?
  • How is Drug Development Core Lab industry performing?

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Report Coverage

  • Market Trends–Consolidation of Core labs
  • Technology & Innovation Trends
  • Mergers and Acquisitions

Market Size

Global Market Size

$3 - 3.2 Bn

CAGR

7 - 8 Percent

Table of contents

  1. Executive Summary
  2. Executive Summary- Global Central Laboratories Snapshot
  1. Market Overview
  2. Market size and Growth forecast
  3. Drivers and Constraints
  4. Outsourcing Adoption Rates
  5. Porter’s Five Force Analysis
  6. Market Trends
  7. Technology & Innovation Trends
  1. Central Laboratory Services - Supplier Analysis
  2. Types of Central Laboratory Service Providers
  3. Supplier capabilities (Top suppliers)
  4. List of Suppliers
  5. Deals between Buyers and Suppliers
  6. Mergers and Acquisitions
  1. Sourcing Best Practices
  2. Cost Breakup and Cost Drivers
  3. Central Labs - Sourcing Scenarios

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Global Market Outlook on Drug Development Core Lab

  • The market is moving toward consolidation through mergers and acquisitions. Currently, around 60-65 percent of the market share is being held by the top six service providers, where Covance and Q2 solutions are considered the leaders, contributing to 35–40 percent of the overall central lab market

  • The dynamics of outsourcing of this category by large pharma has shifted to a more consolidated base, with two or three preferred vendors to support their global central lab operations. The leading service providers include large CROs, like IQVIA, as well as specialized central laboratory service providers BARC. Acquisition of Covance by LabCorp by has allowed pharma companies to venture into new options of comprehensive outsourcing of central laboratory work

    drug-development-core-lab-global-market-size

Outsourcing Adoption Rate

  • Currently, large pharma engages with three or more global central laboratory service providers as preferred service providers on a fee for service basis
  • This relationship is shifting to strategic partnerships (up to 10 years) with one or two full service providers (Covance, PPD) with a global in-house capacity and value or milestone- based pricing models
  • Engaging with a CRO is preferred, as they provide other related services as a value addition, when compared to a diagnostics laboratory service provider
  • Pricing, specialty testing, global reach, logistics management, flexibility, proactive communication, extensive customer base, and industry reputation are some of the critical parameters to decide on a vendor

Market Trends–Consolidation of Core labs

Current major trend in the Central laboratory market is the horizontal integration via consolidation and integration of services through acquisitions and collaborations.

Major reasons for such collaborations and acquisitions:

  • To expand beyond core services
  • To meet the increasing demand of clients by providing one-stop shop solution to their clients
  • Need for specialized and experienced core labs because of project-based outsourcing from pharma companies

Technology & Innovation Trends - Central Laboratory Services

  • Centralization of the specialized biomarker development using digital pathology results in cost and testing time reduction
  • It is the key technological trend, affecting the central laboratory services market, as it is one of the fastest growing technologies, contributing up to 30–40 percent of the technological market
  • RFID and tagging enhances the visibility and traceability of samples during the storage process
  • Adoption of dry blood spot testing technologies (CAGR 8–9 percent) resulted in process optimization as well as high cost efficiency
  • Point of Care (POC) testing is currently used for safety monitoring at a local level

–Centralization and integration of the results locally generated would be a challenge to the central laboratory services

–It is expected to be leveraged in the future by engaging with alliance partners at local and regional levels by the global central lab providers

  • The market for robotics & automated liquid handling (e.g., dry vapor shipping), which enables space optimization, provides cost efficiency and ensures quality in central lab operations are expected to reach about $5.1 billion by 2020

Centralization of specialized biomarker development is the key technological trend, affecting the central laboratory services market, as it contributes to 30–40 percent of the technological market

 

 

 

Drug Development Core Lab Frequently Asked Questions

  1. At what CAGR is the global central laboratory services market size expected to grow during the 2016-2020 forecast period?
  2. According to Beroe’s market analysis reports, the global central laboratory services market size is expected to grow at a CAGR of 7-8 percent from 2016-2020.
  1. What was the market size of the global central laboratory services market in 2017?
  2. From the 2017 reports from Beroe, the global central laboratory services market was valued at around $3-3.2 billion.
  1. What are the factors that drive the central laboratory services market?
  2. Cost efficiency, technological innovations, shift or clinical trials to emerging economies, regulatory and operational leading to increased outsourcing are the factors driving the global central lab services market.
  1. What is a core lab’s major market constraint?
  2. In the central laboratory services, there is a constant need to innovate and acquire the latest technological and medical innovations and drug development laboratory equipment acting as a market constraint. The other factor is the need for large capital investments to build and maintain a central laboratory facility.
  1. Who are the key suppliers in the global central laboratory services market?
  2. Covance, Quest, ICON, IQVIA, LabCorp, and PPD are the key suppliers in the global central laboratory services market.
  1. Which region has the largest share of the global central laboratories market?
  2. North America has the largest share of the global central laboratories market followed by Western Europe. However, the drug development market regions with emerging economies like China, Russia, and Southeast Asia seem to have good growth opportunities in the future.
  1. What are some of the critical parameters based on which the vendor is decided?
  2. Pricing, specialty testing, global reach, logistics management, flexibility, proactive communication, extensive customer base, and industry reputation are some of the critical parameters which are taken into consideration to decide on a vendor.
  1. What are the major reasons for the collaborations and acquisitions in the central laboratory market?
  2. Some of the major reasons for the consolidation and integration of central laboratory services through acquisitions and collaborations are – · Expansion beyond the core services · Catering to the growing client demands for one-stop drug development lab equipment and solutions · Need for specialized core labs because of project-based outsourcing from pharma companies
  1. Which is the key technological trend affecting a major part of the central laboratory market?
  2. Centralization of specialized biomarker development is the major technological trend contributing to 30-40 percent of the technological market and having a significant impact on the central laboratory services market.
  1. What is the expected growth of the market for robotics and automated liquid handling by 2020?
  2. By 2020, the market for robotics and automated liquid handling is expected to reach about $5.1 billion. It enables space optimization, provides cost efficiency, and ensures quality in central lab operations.

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