Medical Affairs Outsourcing Market Growth & Trends
The global medical affairs outsourcing market size is expected to reach USD 3.47 billion by 2028 registering a CAGR of 12.2%, according to a new report by Grand View Research, Inc. Transformation in medical education and the rising number of orphan therapies for the treatment of rare diseases are some of the key factors propelling the market growth. The pharmaceutical companies are looking for assistance to systematically position the therapeutic outcomes of these therapies in the market. According to a report published by IQVIA in 2020, the U.S. FDA has approved 80 orphan indications in 2017 and about 57 in early 2020.
Changes in the reimbursement scenario and pricing pressure are expected to increase the adoption of cost-saving measures by the pharmaceutical and medical device companies. This is anticipated to promote off-shoring of medical affairs outsourcing in countries like India and China. Pharmaceutical companies are outsourcing medical affairs services to get high-quality documents, control the R&D cost, and reduce investment costs required to train the medical affairs team. Furthermore, the pharmaceutical and medical device companies are outsourcing their medical affairs services to diverge their business activities and manage product life cycles.
In addition, Contract Research Organizations (CROs) offer cost-efficient solutions and compliance with the health authority requirements, thereby propelling market growth. The bio/pharmaceutical outsourcing industry has seen a rise in R&D demand because of the COVID-19 pandemic. This increase in demand, as well as other impacts from the pandemic, such as rising demand for clinical trials and its outsourcing services, have caused some CROs to shift focus and adjust their operations. The pandemic has pushed more pharmaceutical companies and regulators to use new technologies for remote quality audits and inspections, thus driving positive changes in the pharma industry.
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Medical Affairs Outsourcing Market Report
Medical Affairs Outsourcing Market Report Highlights
- The medical writing & publishing segment led the market in 2020 and is expected to witness significant growth over the forecast period, owing to the increasing need for marketable written content to convey medical information to healthcare professionals and patients
- North America dominated the global market with a share of 35.3% in 2020 owing to the presence of a large number of pharmaceutical and medical devices companies in the region
- Moreover, the high cost of medical affairs services is a major challenge, which has encouraged various medical device companies in North America to outsource functions to third-party vendors in off-shore locations with a high level of expertise in the domain
- However, Asia Pacific is anticipated to account for the largest revenue share by 2028 while growing at the fastest CAGR over the forecast period, owing to cost-efficient service offering by the CROs in the region
- In addition, improved regulatory framework and availability of a skilled workforce in APAC boosts the market growth