Positive signs for the Pharmacovigilance Market
The Pharmacovigilance Market is set to emerge as a lucrative service provider segment as high outsourcing rates by biotech firms to push the industry over 2016-2024
Pharmacovigilance has a firm foothold in the medical sector as a consequence of mandatory drug safety monitoring. The Pharmacovigilance Market is gaining remarkable momentum due to a strict regulatory framework pertaining to drug testing and approval. Leading pharmacovigilance service providers often collaborate with CROs and their compeers to maximize their service portfolio and offer customized, foolproof services.
Key players accumulating a major share of the pharmacovigilance industry include Accenture, Cognizant Technology Solutions Corporation, Quintiles, Boehringer Ingelheim, Synowlwedge, Bristol-Myers Squibb, ICON, United BioSource, PAREXEL, and Covance. Mergers & acquisitions is a prime growth tactic adopted by these giants to sustain the market and counter their rivals.
Unique services ranging from drug testing, drug approval and drug commercialization provided by these companies will contribute to the expansion of the pharmacovigilance industry in the years to come. A report by Global Market Insights states that the pharmacovigilance market is expected to surpass a valuation of USD 8 billion by 2024, in comparison to USD 3 billion in 2015.
The pharmaceutical sector growing substantially, with a rising number of global chronic disorders and the subsequent increase in the manufacture of suitable drugs. In 2010, more than 6 billion drugs were disbursed in the United States alone. Manufactured drugs are clinically tested for adverse effects and fatal reactions before they are commercialized and made available to the masses. Stringent government norms subject to clinical trials and drug approvals will drive the global pharmacovigilance industry.
Pharmacovigilance services can be outsourced on a contractual basis or provided in-house. Demand for confidentiality pertaining to drug information and effective data management will propel the in-house pharmacovigilance market size, which was valued at USD 1.5 billion in 2015. This service provider segment is anticipated to cross a revenue of USD 3 billion by 2024.
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The contract outsourcing pharmacovigilance industry, with a revenue of USD 1.7 billion, accounted for more than half of the overall share in 2015. Pharmaceutical and biotechnology firms are increasingly concentrating on the bottom line range and outsourcing pharmacovigilance services to niche-specific organizations, which is sure to propel contract outsourcing based pharmacovigilance market trends. In addition, outsourcing these services will reduce the financial losses attributed to testing failures and drug approval delays. The contract outsourcing pharmacovigilance industry is slated to exceed a revenue of USD 4.8 billion by 2024.
The European pharmacovigilance market was worth more than USD 790 million in 2015, with Spain, Germany, and the UK accounting for more than 70% of the regional share. The increasing demand for personalized drugs and customized services in the region has fueled the Europe pharmacovigilance industry, which is anticipated be worth USD 1.8 billion by 2024, with a CAGR estimation of 10% over 2016-2024.
The APAC and Brazil pharmacovigilance markets will surpass revenues of USD 2.4 billion and USD 300 million by 2024 respectively, powered by the growth of the pharmaceutical sectors, increase in the number of biotechnology companies, and growing concerns regarding the usage of drugs.
Increasing concerns regarding patient health and safety coupled with the occurrence of adverse drug events will drive U.S. pharmacovigilance industry, which is set to exceed a revenue of USD 2.5 billion by 2024, growing at a CAGR of 10.7% over 2016-2024.
Pre-clinical trial is a mandatory trial service enmeshed in the pharmacovigilance market. Government directives subject to the crucial collection of data prior to the actual testing will drive pre-clinical trial industry, which will observe a valuation of more than USD 84 million by 2024, with a growth rate of 10.3% over 2016-2024.
Surging requirements for drug safety detection and analysis will accelerate Phase III clinical trial market, which is set to grow at a CAGR of more than 10% over 2016-2024, with a target size of USD 1.25 billion by 2024. Phase IV clinical trial industry will depict a growth rate of 10.9% powered by the growing concerns regarding drug efficacy and safety evaluation.
Pharmacovigilance market participants in the developed regions have registered a paradigm shift in the provision of their services over the last few years. Most of the leading providers are now outsourcing their services to the BPOs and other related firms in the emerging economies, owing to the fact outsourcing reduces operational costs, aids safer drug monitoring, ensures adherence to regulatory reforms, and helps enhance the overall productivity. This in turn is likely to spur global pharmacovigilance industry growth over the coming years.