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CRO Future

Contract research organizations may have some brighter days ahead of them, says Ed Silverman at Pharmalot.

As pharmaceutical companies are showing signs of stability, Silverman says that'll rub off on CROs. He adds that during "the next several years, in fact, CROs sales are expected to grow in the mid-single digits."

As he notes, Moody's analyst Jessica Gladstone says that drugmakers have more robust pipelines and are increasingly turning to CROs to run their clinical trials. Further, she says that revenue growth from late-stage clinical trials has increased about 11 percent.

However, she adds that double-digit growth will be difficult to maintain and that reductions in biotech funding could also affect CROs. And, merger activity could lead to a reduction in projects that are seen as redundant as well as to shifts in priorities.

The Scan

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