clinical development year in review (2013)
DESCRIPTION
In 2013, R&D spending remained relatively flat and the number of studies started by industry also remained about the same, but outsourcing penetration is increasing. There are now more realistic options for sponsors seeking to outsource large studies. There will be more competition for large studies and the large CROs depend on large studies for their growth.TRANSCRIPT
In 2013, R&D spending remained relatively flat and the number of studies started by industry also remained about the same, but outsourcing penetration is increasing. There are now more realistic options for sponsors seeking to
outsource large studies. There will be more competition for large studies and the large CROs depend on large studies for their growth.
2013
Eisai slashes U.K. R&D jobs in 'global' restructuring
AZ Restructures, To Build New HQ Forest Labs to Cut 9% of Workforce
Post-restructuring, Pfizer R&D focused on its top blockbuster prospects
Novartis plots sales cuts in U.K. amid R&D restructuring
Merck Announces Global Initiative to Sharpen Commercial and R&D Focus
R&D RESTRUCTURING
CRO MERGERS & PARTNERSHIPS
Revenue Backlog
Q1,2013
$3.26B
$24.03B
Q2,2013
$3.22B
$23.31 B
$3.05B
Q3,2013
$23.64 B
CRO REVENUE & BACKLOG
Pharma Biotech Generic
$60.9B $57.8B
$17.4B $17.2B
$1.6B $1.9B
1st 3 Quarters of 2012
1st 3 Quarters of 2013
R&D SPENDING STAYS FLATQ4,2011 Q1,2012 Q2,2012 Q3,2012 Q4,2012 Q1,2013 Q2,2013 Q3,2013
1 12 4 6 63 5
326
392
319308
278
338296 310
100122
96 93 90100 114154
287
283259 260
242264
240223
283283 269 281
238
298
216 210
Phase 0Phase IPhase IIPhase IIIPhase IV
CLINICAL TRIAL SUBMISSIONS
IHE (Pharmaceutical Industry Index Fund) is up 35% for the first 11 months of 2013 vs. the Dow Jones Industrial Average which is up “only” 24% over the same period
STOCK PRICES FARE OKBased on ISR’s market sizing model, we estimate that the top 5 CROs account for ~50% of the total market and the top 8 CROs account for ~66% of the market. But overall, sponsors are not overly satisfied with the outsourcing models currently employed. Fewer than 6% of respondents are “completely satisfied” with their outsourcing.
KKR
RPS
PRACoreLab
Quintiles
Novella
PPD
Acurian
JLL
BioClinica
AQUISITIONS:PARTNERSHIPS:
QuintilesMerck Serono
ISR Researchwww.fiercebiotech.com www.mercknewsroom.com
www.contractpharma.comonline.wsj.comir.kkr.com
www.quintiles.comwww.ppdi.comwww.bioclinica.com
ISRreports.com | [email protected] | @ISRreports
• IHE is up 18% • DJIA is up 8% • Quintiles is up 1% PAREXEL is down 8% • ICON is up 13% • Covance is up 17%
www.google.com/financewww.clinicaltrials.govBloomberg BusinessWeek
June 1st to December 1st 2013
Quintiles, PAREXEL, Covance, ICON, and Charles River
Quintiles, PAREXEL, Covance, ICON, and Charles River Quarterly Reports