Contract Research Organizations(CROs)
Role of Contract Research Organizations (CROs)
To promote the development of new therapies, pharmaceutical, biotech, and medical device companies’ partner with contract research organizations (CROs) for their expertise in navigating the intricate landscape of drug development and regulatory processes while conducting clinical trials. CROs play a vital role in accelerating the market introduction of new interventions, such as drugs, devices, and technologies. However, clinical trials have grown more complex in recent years, placing additional strain on research teams and clinical sites. We will begin by discussing the challenges encountered in managing clinical trials, then explore how CROs tackle these issues, and the advantages sponsors gain from collaborating with them.
Top Contract Research Organizations of 2024
With ongoing expansions, partnerships, and innovations in the CRO industry, 2024 promises to be an intriguing year. Below is a list of the top ten CROs to watch, based on industry insights and presented in no particular order. This list features both established leaders in market share and revenue, as well as emerging firms making their mark through strategic collaborations and innovative services.
PARAXEL
- Acquisition: Partnership with Partex: In 2023, Parexel partnered with AI company Partex to enhance clinical success prediction.
- Revenue: Parexel reported INR 500 crore in operating revenue for FY 2023.
- Awards: In 2023, Parexel was named "Best Contract Research Organization" at the Scrip Awards for innovation in patient engagement and diversity.
- 2024 Projection: Parexel projected 2024 revenue of $1.1–$1.3 billion, down from earlier estimates due to currency fluctuation
IQVIA
- Formation of IQVIA: In 2016, Quintiles and IMS Health merged to form IQVIA, the largest CRO globally.
- Acquisitions: IQVIA expanded through several acquisitions of smaller specialists.
- Revenue: IQVIA reported $14.98 billion in revenue for 2023, a 4% increase from 2022.
- Growth Areas: Its R&D solutions division grew by 4.5%, and tech/analytics solutions increased by 2%.
- Industry Leadership: IQVIA remains a leader in healthcare intelligence, continuing to shape the CRO sector.
ICON
- Acquisitions: ICON acquired PRA in 2021 and integrated their teams in 2023.
- Global Presence: ICON operates in over 40 countries, offering consulting, clinical development, and commercialization services.
- Focus on Efficiency: Recently, ICON has prioritized enhancing clinical development speed and increasing customer partnerships.
- Revenue: ICON reported $8.1 billion in revenue for 2023, a 4.9% increase from the previous year.
- M&A Strategy: CFO Brendan Brennan announced an aggressive M&A strategy for 2024, with a $500 million budget for acquisitions to drive growth.
PPD
- PPD is a global CRO with 30,000+ employees, emphasizing "4I values" (integrity, innovation, intensity, involvement).
- Acquired Evidera in 2016 to enhance real-world research.
- In 2021, acquired by Thermo Fisher Scientific Inc.
- PPD offers traditional CRO services and accelerated site solutions.
- Thermo Fisher's acquisition of CorEvitas expands real-world evidence capabilities.
- 2023 revenue fell 5% to $42.86 billion; organic revenue decreased by 5%.
- Decline attributed to lower automotive demand, higher PPD inventory, and shipment delays from a Houthi attack.
Syneos Health
- Syneos Health, formerly InVentiv Health and INC Research, specializes in late-stage clinical trials.
- Headquartered in North Carolina, USA, with operations in 110+ locations globally.
- Focused on accelerating strategy, scalability, and operational efficiency through collaborations and investments.
- Michelle Keefe became CEO in 2022, succeeding Alistair Macdonald.
- In 2023, Syneos Health partnered with Microsoft Research to develop a machine learning platform for optimizing clinical trials.
- 2023 revenue was ₹455.47 billion, up from ₹446.27 billion in 2022 and ₹388.00 billion in 2021.
Fortrea
- In 2022, Labcorp announced plans to spin off its CRO segment.
- In 2023, Fortrea became an independent, publicly traded CRO.
- Fortrea offers drug and medical device services, including clinical trial management and commercialization.
- The company serves biotech, pharma, and medtech clients with 19,000+ employees globally.
- In early 2024, Fortrea plans to sell its Endpoint Clinical and Fortrea Patient Access businesses for $345 million to focus on being a "pure-play CRO."
- 2023 revenue was $3,109.0 million, up from $3,096.1 million in 2022.
- Clinical Services revenue was $2,839.5 million; Enabling Services contributed $269.5 million.
Medpace
- Medpace is a mid-sized CRO specializing in global clinical research for drugs and devices.
- Focuses on organic growth rather than acquisitions, reinvesting in its workforce.
- Headquartered in Cincinnati, Ohio, with over 5,000 employees in 40 countries.
- Maintains a close-knit office culture, enhancing employee engagement and client interactions.
- In 2023, Medpace's revenue increased by 29.2% to $1.89 billion.
- Since going public in 2015, the company has seen consistent growth.
PSI
- PSI is a rapidly growing CRO specializing in oncology, hematology, infectious diseases, and multiple sclerosis.
- Founded in 1995, PSI employs 3,000 staff across 60 countries, expanding into new markets in recent years.
- Known for high repeat/referral business and low staff turnover.
- Aims to be recognized as the best CRO globally by employees, customers, investigators, and vendors.
- In June 2023, PSI won CRO Leadership Awards for the 6th consecutive year in Expertise, Quality, and Reliability.
Ergomed
- Over 25 years in business with a presence in 100+ countries.
- Provides specialized services to the pharmaceutical industry for drug development.
- Serves 300+ clients, including top 10 pharma, generics, and small/mid-sized developers.
- Completed 9 acquisitions since its 2014 IPO, including Ashfield PV, USA MedSource, and ADAMAS (2022).
- Expanding teams by hiring talent from leading CROs while maintaining a small-company culture.
- Demonstrated resilience with 2023 H1 revenue of £76.7 million, a 10% increase from £69.9 million in H1 2022 (7% in constant currency).
Precision for Medicine
- Precision for Medicine: a global clinical research organization with 3,000+ employees across 40 offices.
- Expertise in oncology, immuno-oncology, rare diseases, and cell/gene therapy.
- Guided by five core principles: Client Service, Purpose, Accountability, Mutual Respect, and Collaboration.
- Acquired Baseline Controls in 2023 to enhance end-to-end manufacturing solutions.
- Baseline Controls integrated into “Project Farma” to improve drug development speed and efficiency.
- Annual revenue reached $750 million as of September 2024.
