The
growing cost of drug development is augmenting the growth of the global life
sciences BPO market. For instance, according to a study by the Tufts Center for
the Study of Drug Development published in the Journal of Health Economics in
May 2019, 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. Also, patent expiration is another key factor propelling the growth of
the life sciences BPO market. For instance, the patent for YAZ
(drospirenone/ethinylestradiol), which provides an oral contraceptive regimen,
is set to expire in 2021. Furthermore, the rising prevalence of chronic disease
around the globe is further anticipated to accelerate the growth of the market.
North
America is projected to lead the global life sciences BPO market due to
increasing R&D in cell therapies by key players in the region. 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.
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.
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.
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