Could CROs double their current market penetration?

As Pharma companies come to see the lack of internal inefficiencies that come from conducting trials through their own organizations worldwide rather than outsourcing to CROs, Ed Silverman at Forbes believes that over time, Pharma companies will realize that going to the experts at the sites to conduct clinical trials will gain popularity. The recent acquisition of Pharmaceutical Product Development by private equity firms Carlyle Group and Hellman & Friedman confirms this.  As it gets more and more expensive to outsource internally, the industry has seen a 90% increase in the budgets for partnering with CROs.  Silverman even suggests that 60-80% market penetration could be in the future.  Today, we've seen the market penetration of 2011 at 38%, up 3% from 2010.

RW Baird analyst Eric Coldwell commented, “Looking ahead several years, we have generally concluded that client R&D budgets will be flattish in total, yet the CRO industry secular market move to higher involvement will continue as clients replace less efficient internal functions with more efficient and cost effective external solutions.”

Partnerships in Clinical Trials is the leading worldwide event for clinical outsourcing and development professionals. Yearly, 2000 Pharma, CROs and other clinical research partners gather under one roof, Partnerships is known for strategic program content that drives business forward and for unparalleled networking. This year, it will take place March 5-7, 2012 in Orlando, Florida.  The 2012 Agenda will be revealed shortly.

Do you agree?  Could market penetration of CROs increase from to as high as 80% at some point in the future? What do you see as the future for CROs?