Pharmaceutical Services Market Outlook


The rapidly growing outsourced life science services market is consolidating at an accelerating rate, driving PE / VC investment and M&A activity to record levels. Pharmaceutical services providers are benefitting from (i) record amounts of investment in biopharmaceutical companies and (ii) increased outsourcing as a percent of total R&D expenditures. As a result, the outsourced pharmaceutical services market, which has experienced a ~9% CAGR since 2016, is projected to grow at an even faster rate over the coming years.

In this thought piece, we discuss several key market drivers fueling investment in outsourced life science services, including: 

  • The Great Convergence
  • Pharma is “LIT
  • Proliferation of Small-to-Mid Sized Biotechs (“SMB”)
  • High Demand for Premium Services
  • Rise of Virtual and Decentralized Trials
  • Acceleration of Medical Device Outsourcing
  • Sticky and High-Visibility Revenue Models
  • Massive Opportunities in AI / ML Discovery, Oncology / Rare Diseases, and Cell & Gene Therapy
  • EU and Asian Investors Winning Leading Roles
  • Rare Gems
  • Innovation = Value
  • M&A Often as the Only Option

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