Global Contract Drug Development Spending to Reach $42 Billion by 2010

New York, May 16, 2006 —With pharmaceutical companies outsourcing an increasing number of operations from discovery research and clinical trials to manufacturing and distribution, a new report from market research firm Kalorama Information has found that contract drug development expenditures reached $19 billion in 2005 and are expected to increase at an annual rate of 17% to exceed $42 billion by 2010.

According to the new Kalorama Information research, Outsourcing in Drug Development: The Contract Research Market from Preclinical to Phase IV, the continual push to reduce drug development costs, bring drugs to market more quickly, and increase the number of new drugs in the pipeline has forced the rapid growth of the contract drug development industry, which increased 15% from 2000 to 2005. Kalorama Information expects the overall global market for drug development to exceed $105 billion by 2010, with outsourcing making up a healthy 40% of the market.

A major bottleneck for developers continues to be delays in patient recruitment for clinical trials which can result in millions of dollars of lost sales. Outsourcing has become a widely-used solution for shortening recruitment time and increasing patient retention.

Additionally, specialty service providers offering a diverse array of development capabilities, such as electronic technology solutions and internet patient recruiting, are making it possible for developers speed up the development process, which can take up to eight-and-a-half years.

“Contract research outsourcing has evolved into a full-service industry that encompasses the entire drug development process, including pre-clinical safety evaluation, pharmacology, study design, regulatory services, and so much more,” notes Anne Anscomb, the report’s author. “Outsourcing will only continue to expand as pharma and biotech companies come to rely on these services to cover gaps in their own capacity, increase their skills base, and bring drugs to market more efficiently.”

An in-depth analysis of the market with profiles of both major and niche competitors, this 2nd Edition of Outsourcing in Drug Development also includes a comprehensive overview of the drug development process, including regulatory issues. It is available from Kalorama Information by clicking:

http://www.bioportfolio.com/cgi-bin/acatalog/Outsourcing_in_Drug_Development__The_Contract_Rese.html

About Kalorama Information
Kalorama Information, a division of MarketResearch.com, supplies the latest in independent market research for the life sciences. To view their catalogue go to:

http://www.bioportfolio.com/cgi-bin/acatalog/Kalorama.html