Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Business process outsourcing (BPO) is the contracting of non-primary business activities and functions to a third-party provider. Life sciences offers various services in research, discovery, development, drug registration, and product launch.
The global life sciences BPO market is estimated to account for US$ 667.3Bn in terms of value by the end of 2027.
Global Life Sciences BPO Market: Drivers
Increasing cost of drug development is expected to propel growth of the global life sciences BPO market over the forecast period. For instance, the cost of drug development was US$ 2.6 billion, which included average out-of-pocket costs of US$ 1.4 billion and time costs of US$ 1.2 billion, according to a study by the Tufts Center for the Study of Drug Development published in the Journal of Health Economics in May 2019.
Moreover, patent expiration is also expected to aid in growth of the market. For instance, patent for YAZ (drospirenone/ethinylestradiol), which provides an oral contraceptive regimen, is set to expire in 2021.
Asia Pacific held dominant position in the global life sciences BPO market in 2019, accounting for 39.9% share in terms of volume, followed by North America and Europe, respectively
Figure 1: Global Life Sciences BPO Market Share (%) Value, By Region, 2019
Global Life Sciences BPO Market: Restraints
Data safety concerns are expected to hinder growth of the global life sciences BPO market. Despite growing adoption of contract research outsourcing process, pharmaceutical companies still consider reliability of the service provider a major challenge as there have been many cases of data breach in the past.
Moreover, stringent and varied regulatory approval processes in different countries are also expected to limit the market growth. Majority of the clinical trials and other research processes are outsourced to various countries simultaneously. These destination countries have different guidelines and regulatory processes related to drugs, filing and clinical trials. The conduction of multi-location trials of a single drug in different procedures in different countries poses a challenge to pharmaceutical companies as they have to follow a completely different procedure in each country.
Life Sciences BPO Market Report Coverage
||Market Size in 2019:
||US$ 222.9 Bn
|Historical Data for:
||2016 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||US$ 667.3 Bn
- North America: U.S., Canada
- Latin America: Brazil, Argentina, Mexico, Rest of Latin America
- Europe: Germany, U.K., France, Spain, Italy, Russia, Rest of Europe
- Asia Pacific: China, Japan, India, Australia, South Korea, ASEAN, Rest of Asia Pacific
- Middle East: GCC Countries, Israel, Rest of Middle East
- Africa: North Africa, Central Africa, South Africa
- By Service Type:
- CMO: API Manufacturing, Final dosage form manufacturing, Packaging
- CRO: Drug Discovery, Preclinical studies, Early Phase I - IIa, Phase IIa - III, Phase IIIb - IV, Medical writing, Pharmcovigilance, Monitoring, Clinical Data Management, Regulatory services, Bio-statistics, Site management, Protocol development, Others
Accenture, Plc., Boehringer Ingelheim GmbH, Charles River Laboratories International, Inc., Cognizant Technology Solutions, Covance, Inc., DSM, Fareva, ICON, Plc, Infosys, Catalent, Inc., Genpact Limited, Health Decisions, Inc., and ProMab Biotechnologies, Inc.
- Increasing prevalence of chronic disorders
|Restraints & Challenges:
Global Life Sciences BPO Market: Opportunities
R&D in cell therapies is expected to offer lucrative growth opportunities for players in the global life sciences BPO market over the forecast period. For instance, in February 2020, Caribou Biosciences, Inc., a CRISPR genome editing company, signed a sale and assignment agreement with ProMab Biotechnologies, Inc., a biotechnology CRO/CDMO specializing in antibody engineering and CAR-T development, under which Caribou gains access to a ProMab humanized single-chain variable fragment (scFv) targeting the B-cell maturation antigen for use in allogeneic engineered cell therapies.
Moreover, increasing prevalence of chronic disorders is also expected to aid in growth of the market. For instance, according to the American Cancer Society, in 2019, there will be an estimated 1,762,450 new cancer cases diagnosed and 606,880 cancer deaths in the U.S.
The global life sciences BPO market was valued at US$ 222.9 Bn in 2019 and is forecast to reach a value of US$ 667.3 Bn by 2027 at a CAGR of 14.7% between 2020 and 2027.
Figure 2: Global Life Sciences BPO Market Value (US$ Bn), 2016 – 2027
Market Trends/Key Takeaways
Major players in the market are focused on acquiring public contracts to enhance their market share. For instance, in April 2020, Accenture Federal Services, a subsidiary of Accenture, Plc, received a US$ 96 million task order to help the U.S. Department of Veterans Affairs provide consumer-grade IT and mission service experiences.
Major players in the market are also focused on adopting partnership strategies to enhance their market share. For instance, in May 2020, Boehringer Ingelheim signed a licensing agreement with CDR-Life for to R&D of antibody fragment-based therapeutics for geographic atrophy.
Global Life Sciences BPO Market: Competitive Landscape
Major players operating in the global Life Sciences BPO market include, Accenture, Plc, Boehringer Ingelheim GmbH, Charles River Laboratories International, Inc., Cognizant Technology Solutions, Covance, Inc., DSM, Fareva, ICON, Plc, Infosys, Catalent, Inc., Genpact Limited, Health Decisions, Inc., and ProMab Biotechnologies, Inc.
Global Life Sciences BPO Market: Key Developments
Major players in the market are focused on adopting M&A strategies to expand their product portfolio. For instance, in May 2020, Catalent, Inc. announced a deal to acquire a clinical packaging facility in Minakuchi, Japan, from Teva-Takeda Pharmaceuticals in order to establish a new clinical GMP manufacturing and distribution hub to support clinical studies.
?Major players in the market are also focused on adopting partnership strategies to enhance their market share. For instance, in March 2020, Charles River Laboratories International, Inc. partnered with Deciphex, a preclinical digital pathology software-as-a-service provider, to enhance drug discovery & development with digital pathology.