Contract Research Organizations

Abstract

Contract research organizations (CROs) have become important partners to pharmaceutical and biotechnology companies in the development of new drugs. CROs have captured only 10% of the total clinical research spending by pharmaceutical and biotechnology companies. The potential for further growth is enormous. Nineteen of the top 20 pharmaceutical companies have invested in emerging markets such as China, India, Russia, Latin America, East Europe, and so forth. The growth potential in these emerging countries is very encouraging. In 1997 some of the larger CROs began acquiring contract marketing and contract sales (CSO) capabilities to extend their services and offer one-stop shopping. The estimated worldwide contract marketing and contract sales expenses are approximately $36 billion. The growth and consolidation of CSOs will be accelerated, and the forger players from other industries may join in the consolidation process. The traditional nature of CROs has changed and they will evolve into a formidable i...