Pharmacovigilance Market size exceeded USD 7.7 billion in 2020 and is anticipated to grow at a CAGR of over 7.3% from 2021 to 2027. Increasing acceptance and adoption of outsourcing services by healthcare companies is expected to stimulate the market growth in the coming years. Also, significant acceptance for outsourcing PV services owing to economic advantages is predicted to accelerate the market expansion during the forecast timeline.
The evolving threat of COVID-19 infection is optimistically affecting the market progression. Medical monitoring and safety reporting are essential as several potential therapies are being used in the treatment of COVID-19 induced infection. The medications such as hydroxychloroquine (HCQ), Remdesivir and Lopinavir/Ritonavir are being repurposed to treat COVID-19 infection. The chances of suspected adverse drug reactions for some of these medicines were already been submitted to the individual case safety reports database named VigiBase, managed by Uppsala Monitoring Centre (UMC).
Increasing usage of pharmacovigilance outsourcing in APAC region will boost the market value
Pharmacovigilance outsourcing is a practice carried out by pharmaceuticals or drugs manufacturing companies in which the drug safety testing processes are transferred to a third-party entity. In the past ten years, pharmacovigilance outsourcing (PVO) practices have increased rapidly due to the flexibility and cost reduction provisions it offers to a drug manufacturer. Getting drug safety processes done from a third-party allows companies to concentrate on their prime objectives and also curb the cost-associated with establishing an in-house pharmacovigilance system. Thus, many drug manufacturers are noted to opt for PVO, especially the firms in Asia-Pacific region, thereby supplementing the industry growth. Furthermore, the cost to conduct clinical trials and pharmacovigilance services in APAC is observed to remain 50%-70% lower than its developed counterparts.
|Market Size in 2020:||USD 7.8 Billion|
|Forecast Period:||2021 to 2027|
|Forecast Period 2021 to 2027 CAGR:||7.3%|
|2027 Value Projection:||USD 13.0 Billion|
|Historical Data for:||2016 to 2020|
|No. of Pages:||150|
|Tables, Charts & Figures:||79|
|Segments covered:||Clinical Trial Phase, Service Provider and Region|
|Pitfalls & Challenges:|
Dearth of skilled personnel may slow the pharmacovigilance market demand
Rapid technological innovations in the field of pharmacovigilance has given rise to a constant demand for highly skilled professionals, especially in developing regions, as various clinical trials are carried out in these countries. As the recording data and reporting structure in pharmacovigilance is complicated due to multiple variables involved, the technological solutions and their implementation is also complicated. Therefore, highly skilled personnel are required to serve the purpose in most efficient and effective way.
Phase IV clinical trial will dominate the industry expansion
The phase IV pharmacovigilance segment accounted for 74.1% of the market share in 2020. Phase IV clinical trials involve the pharmacovigilance and technical support of a drug after it has received market approval. Pharmacovigilance is vital, as it detects and reports any ADRs and harmful effects that may result into discontinuation of drugs or may be limited for use. Therefore, the data collected and assessed during this stage to be the highest relevance credited to intensive drug testing on large patient demographics after commercialization of the drug.
Large, midsize and small companies tend to outsource pharmacovigilance to third-party entity
The contract outsourcing pharmacovigilance is poised to reach USD 7.99 billion by 2027 owing to the enhanced cost-effectivity and better monitoring of drug safety. Handling of large volume of data coupled with stringent regulatory compliance further attributes to increasing preference for pharmacovigilance outsourcing. For instance, many small pharmaceutical companies outsource part of its drug safety assessment to a third-party, while 82% of medium sized and 45% of the large size companies outsource pharmacovigilance exhibiting a considerable acceptance of outsourcing in the market. In addition to this, pharmacovigilance outsourcing is expanding in countries of Asia Pacific, such as India and China, where the cost of outsourcing is remarkably lower as compared to developed nations.
Rising level of drug abuse and associated adverse drug reactions in North America region will drive the market revenue
North America pharmacovigilance market is estimated to showcase 7.4% growth rate through 2027. Growing level of drug abuse and associated adverse drug reactions is one of the primary causes of morbidity and death. This acts as a high-growth rendering factor for PV market in North America. Rising investment in novel drug development by major players is also slated to propel the regional growth. Consequentially, as a result of the large production of drugs, the number of clinical trials and the need for post-marketing surveillance have increased, thereby contributing to the overall growth of the regional market. Moreover, sophisticated healthcare infrastructure in the region coupled with stringent pharmacovigilance guidelines is set to augment the regional progression.
Growth strategies of market players are focused on increasing the customer base
Few of the notable companies operating in the market are Cognizant, IQVIA, Novartis, Sanofi, ICON, IBM Corporation, LabCorp and PAREXEL. These market leaders adopt strategies such as novel product launch, mergers and acquisitions to foster business in pharmacovigilance.
Recent industry developments:
- In October 2020, Saama Technologies Inc. launched its new Active Safety Analytics for Pharma (ASAP) products. ASAP is the first validated pharmacovigilance solution to leverage the U.S. Food and Drug Administrations (FDA) Sentinel Common Data Model and the TreeScan methodology for detecting safety signals. This strategy is expected to influence the revenue generation, thereby strengthening its market position.
- In May 2020, Medicines and Healthcare Products Regulatory Agency (MHRA) launched a new online reporting site to track potential side-effects arising from the use of any therapies used to treat COVID-19. This was in a bid to build a knowledge base around the safe treatment of the pandemic disease.
The pharmacovigilance market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027, for the following segments:
Market, By Clinical Trial Phases
- Phase I
- Phase II
- Phase II
- Phase IV
Market, By Service Provider
- In house
- Contract outsourcing
The above information is provided for the following regions and countries:
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
- South Africa
- Saudi Arabia