According Grand Research View the global preclinical CRO market size was estimated atUSD 4.1 billion in 2019 and is anticipated to expand at a CAGR of 8.3% over the forecastperiod. R&D budget for drug development has increased in recent years leading to arising demand for preclinical CRO (Contract Research Organization) services thus boostingthe market growth during the forecast period.
Increasing spending on CRO services is expected to boost market growth significantlyduring the forecast period. As per survey carried out by Servier Research Institute in2017 around 50% of failure in preclinical phase is due to toxicology testing which isexpected to propel the demand for preclinical CRO services in the coming years. Apart fromthis recent regulatory changes in Europe relating to preclinical CRO services are alsoanticipated to increase the demand for toxicology testing thus contributing to theregional market growth. The rise in the competency of these CROs is also contributing tothe growing demand for preclinical services by life science companies as these clientsare adopting strategic partnerships business models and outsourcing preclinical servicesto CROs. The pressure to contain R&D costs and decrease the overall cost of drugdiscovery and development is further contributing to the adoption of outsourcing model.
Over the years there has been a significant change in the process of drug approval bythe Food and Drug Administration (FDA). Recently 21st Century Cures bill was passed inthe U.S. which fastened the approval process for launch of breakthrough drugs and medicaldevices. These changes in approval processes are expected to drive innovation and are alsoanticipated to increase demand for preclinical services thereby contributing to themarket growth. Based on service the preclinical CRO market is categorized intobioanalysis and DMPK studies toxicology testing and others. Toxicology testing holds thelargest share in the global market since it is an important part of Investigational NewDrug (IND)-enabling studies. Due to rise in outsourcing of noncore preclinical CROstudies the market is expected to grow considerably during the forecast period.
As you are all aware the world is facing one of the worst health crisis of an eradisrupting economies of even developed countries and your company has been no immune tothis crisis but the impact has been very minimal.
Our efforts have been aligned to be the most preferred preclinical CRO for globalbiomedical companies and most preferred distribution partner in India for companies withcutting edge technologies and products.
Like any other business the evolving market competition as well as the rapidinnovation cycle presents its own challenges to gain the market. Vivo Bio Tech encompassesa solid portfolio of products & services with highest Quality standards as centricfocus with greatest principles and customary upgradations to contend and win reliablecustomers worldwide.
With expansion of portfolio in preclinical services (GLP Toxicology Pharmacology andGLP Analytical) extended reach to premier research institutes through custom rodentmodels (Cyagen Biosciences Inc.) high quality lab animal diets (Dietex InternationalLtd.) SPF Guinea Pigs and high acceptance of specific pathogen free laboratory rodents& specialized models (Taconic Biosciences) across the Indian market we are confidentof achieving significant revenue growth on back of long term sustainable technologicaladvantage.
I would like to express my deep gratitude and appreciation for our bankers ourshareholders and our employees for their continued trust and consistent confidence in VivoBio Tech.
M. Kalyan Ram Whole Time Director