14 August, 2015
The pharmaceutical industry has been restructuring its research and development units due to constant pressure from patent expiry, generic competition, and declining revenues in order to achieve cost-cutting. This has resulted in increased outsourcing leading to growth in strategic partnerships from 12 to 15 percent in 2014 to greater than 30 percent in the next two years. Contract Research Organizations (CROs) are responding to these market dynamics to enhance their service offerings either through expansion or mergers & acquisitions. This is driving consolidation in the market as a result of high competition between the CROs to obtain market share. To highlight this trend, we have attempted to rank the CROs based on their clinical revenue, as this is their core source of revenue.