Global Clinical Trial Supplies Market 2021 to 2026: Venture Capital activities in Biotech Sector

 Services including packaging and labeling, clinical supplies logistics & distribution, comparator sourcing, and clinical supplies management are all part of the clinical trial supplies (CTS) market. The R&D expenditure by large pharma companies totaled a record $133 billion in 2021, an increase of 44% since 2016. With the rising R&D spending and the increasing complexity of clinical trials, Pharma/Biotech is looking to outsource more non-core activities related to clinical trials. Big Pharma is usually more reluctant to outsource than biotech, which is highly reliant on external partners for clinical development activities.

The global clinical trial supplies market is valued at ~$2.5 billion in 2021 and is expected to grow at a CAGR of ~8%, driven by rising R&D expenditure, increasing clinical trial complexity and regulatory requirements, robust Venture Capital activity in the Biotech sector, a growing trend towards outsourcing, and growth in clinical trials conducted.

Increased Focus on Biologics which require Specialized Logistics Capabilities 

The biologics market which is rising at ~15% far exceeds the overall pharma market growth. Biologics drugs require specialized logistics, distribution, storage, and monitoring capabilities as drugs are temperature sensitive. This further offers growth opportunities for CTS providers with proven expertise and capabilities in handling biologics.

Evolution in Clinical Trials Conducted

In 2021, new clinical trials started, across Phase I/II/III, representing a 21% increase over the previous year. Between 2016 and 21, the total number of new clinical trials began increased by 7.1%. The progress in the clinical trials conducted would spur the demand for the clinical trial supply services like comparator sourcing, clinical logistics and supplies management.

Oncology – High Growth Therapeutic Area for CTS

Oncology is the leading and fastest-growing segment in terms of therapeutic usage. This is mostly attributed to the presence of a huge R&D pipeline of oncology drugs. Additionally, the majority of oncology drugs require temperature-sensitive distribution, which is anticipated to fuel the demand for cold chain distribution.

Decentralized Trials leading to Increased Demand for CTS

Covid-19 has provided an impetus to clinical trials being conducted in a decentralized manner. Virtual trials have become more important than ever post-pandemic. There were hardly any M&As related to virtual trials taking place before the pandemic, but the market observed ~10 M&A deals in 2020. The rising trend toward decentralized trials and the requirement for direct-from-patient and direct-to-patient logistics and distribution of samples/drugs/monitoring equipment make the role of CTS providers more critical in guaranteeing smooth & efficient progress of clinical studies.

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Global Footprint and Coverage, a Key Differentiator

As companies face challenges in the recruitment of patients, clinical trials are progressively conducted across more regions and sites. CTS providers with a global footprint and/or ability to service across North America/Europe and increasingly Asia/LATAM as well, are in great demand.

Global Expansion and Acquisition Witnessed as Key Growth Strategies

As a key growth strategy, companies in the clinical trial supplies market are concentrating on growing their global presence with additional office footprint and/or entering into acquisitions to broaden their existing service offerings.

For instance,

In June 2021, Biocair opened a new facility in Frankfurt (Germany) as part of the company’s ongoing international growthIn July 2019, Marken acquired HRTL (Italy), HETO (Austria), and Der Kurier (Hungary) to further strengthen its commitment to providing logistics services to the pharmaceutical and life sciences industries in Europe

Competitive Landscape Analysis of Clinical Trial Supplies Market

The global clinical trial supplies market is highly fragmented with the presence of large, integrated CDMOs as well as smaller players. CROs are also looking to expand their service scope to clinical trial manufacturing and also clinical trial supplies distribution & logistics as a vertical integration strategy.

Some of the key/promising players in clinical trial supplies market include Thermo Fisher Scientific, Catalent, Parexel, Almac Group, Clinigen, Marken (UPS), Piramal, UDG Healthcare, Klifo, Capsugel (Lonza), Recipharm, N-SIDE, Ancillare, and Biocair.

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