HEOR Services

HEOR Services Market Growth and Global Outlook

• The global demand for HEOR market is expected to grow at approximately 13-14 percent CAGR through 2022–2032E. The current market size is $1.43 billion (2022E)

• Mandatory HTA submission requirement and growing impact of real-world evidence in P&R are the key drivers of outsourcing

• The industry is witnessing regulatory reforms, which require greater real-world evidence and outcome data, which is resulting in the entry of disruptive innovations, like big-data analytics, m-health, bioinformatics, and other patient intelligence technologies

• Large CROs have been continuously expanding their supply base through acquisitions and partnerships to provide integrated services

Growth Drivers and Constraints : HEOR Services

Drivers

• Real-world evidence and outcome data for reimbursement

• Mandatory HTA submission in many countries

• Pharma being forced to go beyond their comfort zone, like using big-data analytics and m-health technologies, which is driving outsourcing to a large extent

• Pricing control forcing pharma to invest in substantiating their case (commercial trials)

• Cost cutting within pharma, leading to increased outsourcing of these services without increasing the head count

• Improved adherence to patient outcome data, as drug-repurposing is picking pace

Constraints

• Lack of experience in using genomics, determining sub-group populations for effective outcome demonstration

• Lack of a standardization of HTA requirements

• Pharma in nascent stages of contracting in their non-core areas, like m-health and big data

• Many countries lack mandatory HTA

Outsourcing Adoption Rate : HEOR Services

Key Outsourcing Trends

• Outsourcing is well established and a matured trend in this industry

• Manpower cost is an issue (for small/mid-size pharma companies)

• Novel outsourcing for big data analytics or acquisition by other companies to strengthen their own portfolio is the new trend. E.g., OPEN Health’s acquisition of Northwest UK-based medical communications agency Spirit in early August 2021

• Large pharma companies conduct 30–50 percent of trial in-house that provide them with evidence/outcome data freely, eliminating a need for third-party players for those specific data

• The major reason for greater outsourcing in this market is because of varying needs of each study, depending on competition, market, and disease

• CROs are improving their value proposition by providing HEOR as an integrated service along with clinical trials, which can be a negotiation lever for pharma in a bundle

• In the future, this category will see entry of disruptive technologies, like big data analytics and m-health, as more HTA organizations around the world require real-world evidence

Cost Drivers and Cost Structure

• The cost of manpower and complex data analysis are projected to increase with the increase in demand for the HEOR services

• The factors that contribute the most to costs across all the trial phases include patient recruitment involving clinical procedure costs, vendor fees, site related costs, clinical procedures cost, data management and central laboratory costs

HEOR Services Top Suppliers

• IQVIA

• Parexel

• LabCorp

• Syneos Health

HEOR Services Market Overview & Trends

• With Turnbull ‘s efforts to stimulate medical and biotechnological innovation, pharma giants are showing interests in investing in this continent. Australia contributes up to 20 percent of the overall APAC pharma earnings and entering the market must be done strategically for better penetration and returns

• Being an emerging geography, the HTA is developing as a means of controlling prices as well as access. In terms of reimbursements limited expansion of existing public programs are seen in comparison to the tighter payer controls and restrictive conditions as that of USA and the Europe

• The clinical trial environment is not well supported in Australia, but initiatives from suppliers as well as buyers are focusing on bringing about innovative approaches to ease trials as well as understand the health economy better to enter this region.

• Regulatory environment is also changing and promoting RWE studies as well as creation of new and improved patient databases for assessment.

Why You Should Buy This Report

• The report details the pricing models, supplier landscape and outsourcing adoption rate for the HEOR market. 
• Information about what is HEOR, HEOR full form, global HEOR market size, emerging markets, drivers, constraints, etc. 
• Porter’s five force analysis of the HEOR industry
• It shows the key market trends like novel partnerships, new technologies, full-service providers and emergence of biologics.