Medical device companies are outsourcing more of their research and development processes, reducing costs and time by conducting overseas trials, according to a new study by market research group GlobalData.
Contract research organizations (CROs) are becoming increasingly popular with medical device companies keen to improve their financial and operational efficiency, the report stated, as increasingly complex clinical trials are needed to meet the approval of regulatory bodies.
The U.S. accounts for approximately half of the global market for medical device CROs, valued at $1.6 billion in 2011, with growth expected to increase to $3.4 billion by 2018.
The study credited favorable conditions for clinical research and the country's huge medical devices market, which fuels demand for CROs, for the U.S.'s domination in this market.
In addition, a recent increase in the number of regional CROs, especially in the emerging markets of India and China, is due in part to the advantage of low-cost and regional regulatory expertise.
However, India, China, and Brazil still struggle to offer positive regulatory experiences, according to the study, and intellectual property protection remains a major concern for CROs and medical device companies operating there.
