Pharmaceutical Contract Sales Organizations Market Report | Growth Forecasts to 2030

[Research Report] The pharmaceutical contract sales organizations market size is projected to grow from US$ 8,212.02 million in 2022 to US$ 15,820.86 million by 2030; it is projected to record a CAGR of 8.6% during 2022–2030.

Market Insights and Analyst View:

Pharmaceutical contract sales organizations work with pharmaceutical customers. The demand for high-tech development and manufacturing solutions is being driven by the increase in the number of biologics under development. As a result, businesses are investing more in research and development to create contract intelligence platforms that speed up medication trials in highly regulated promotional programs. A rising number of new drug launches, an increase in pharmaceutical R&D activities, and growing demand to lower the cost associated with in-house sales support the growth of the market. Increasing integration of digital technologies and the growing interest of pharmaceutical companies to increase sales of products are the key factors accelerating the growth of the market. In addition, the rising use of telemedicine and remote detailing fuels the market's growth. Also, the expansion of contract sales organizations (CSOs) in emerging markets is increasing the competition in the pharmaceutical contract sales organizations market

Growth Drivers:

In recent years, pharmaceutical companies are increasingly adopting innovative strategies to augment the sales of their products. One notable trend within this landscape is the heightened reliance on pharmaceutical contract sales organizations (CSOs) as a pivotal component of their commercialization endeavors. This underscores a proactive approach by pharmaceutical entities to navigate the complexities of the market. By engaging CSOs, these companies can tap into specialized sales forces, capitalizing on external proficiency to enhance market penetration and optimize sales performance. This collaborative paradigm enables pharmaceutical firms to streamline their operations and concentrate on core competencies such as research and development while concurrently leveraging the tailored expertise of CSOs to bolster their products' market presence. The growing synergy between pharmaceutical companies and CSOs reflects a nuanced understanding of resource optimization, illustrating a commitment to adaptability and a keen awareness of the evolving dynamics within the fiercely competitive pharmaceutical landscape. This symbiotic relationship facilitates revenue maximization and positions pharmaceutical enterprises strategically in an environment where agility and targeted market strategies are paramount for sustained success. Thus, pharmaceutical companies' growing interest in increasing product sales contributes to the growth of pharmaceutical contract sales organizations.  

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Pharmaceutical Contract Sales Organizations Market: Strategic Insights

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Report Segmentation and Scope:

The pharmaceutical contract sales organizations market is segmented on the basis of services, modules, therapeutic area, end user, and geography. Based on services, the market is segmented into commercial services and non-commercial services. In terms of modules, the pharmaceutical contract sales organizations market is segmented into syndicated modules and dedicated modules. Based on therapeutic area, the market is categorized into cardiovascular disorders, oncology, metabolic disorders, neurology, orthopedic diseases, infectious diseases, and others. In terms of end user, the pharmaceutical contract sales organizations market is bifurcated into biopharmaceutical companies and pharmaceutical companies. The pharmaceutical contract sales organizations market, based on geography, is segmented into North America (the US, Canada, and Mexico), Europe (Germany, France, Italy, the UK, Spain, and the Rest of Europe), Asia Pacific (Australia, China, Japan, India, South Korea, and the Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America).

Segmental Analysis:

The pharmaceutical contract sales organizations market, by services, is segmented into commercial services and non-commercial services. The commercial services segment held a larger share of the market in 2022 and is estimated to register a higher CAGR in the market during 2022–2030. Commercial services refer to the range of services provided by CSOs to pharmaceutical companies to support their sales and marketing efforts. CSOs are third-party organizations specializing in delivering sales and marketing services on behalf of pharmaceutical companies. The commercial services provided by these organizations include salesforce outsourcing, market research and analytics, training of medical representatives, marketing and promotional support, remote detailing services, and compliance and regulatory support. These services are crucial for pharmaceutical companies to optimize their sales and marketing strategies, enhance product knowledge and sales skills, engage with key opinion leaders, comply with industry regulations, and drive business growth. By outsourcing these functions to CSOs, pharmaceutical companies can leverage their specialized expertise, resources, and flexibility, enabling them to focus on their core competencies.

CMIC Holdings Co., LTD is one such CSO that provides comprehensive promotional activities, including those specific to a certain product or region. The company's team creates tailored proposals and executes ideal solutions to meet client requirements, such as maintaining or expanding existing product share. The company's sales representatives provide drug information and sales messaging to healthcare professionals through in-person and remote channels.

Commercial sales and marketing play a crucial role in the overall revenue of a pharmaceutical company. Pharmaceutical companies are increasingly investing in research & development activities, resulting in commercial sales and marketing becoming crucial for the pharmaceutical company's overall revenue. In addition, pharmaceutical companies are increasingly interested in increasing their revenue year-over-year, due to which they are focusing on launching new products, which, in turn, fuels the requirement for these commercial services by the pharmaceutical companies to increase their sales.

Based on modules, the pharmaceutical contract sales organizations market is segmented into syndicated modules and dedicated modules. The syndicated modules segment held a larger market share in 2022 and is anticipated to grow at a faster rate during 2022–2030. CSO offers services through dedicated and syndicated modules. Syndicate modules refer to a collaborative approach where multiple pharmaceutical companies join forces to share resources and expertise in order to achieve common sales and marketing goals. These modules allow the companies to form a unified team that promotes and sells the products of all participating companies. By working together, syndicate modules can expand their market reach, improve efficiency, and reduce costs compared to operating individually. CSOs manage syndicated teams, but they promote products from different pharmaceutical companies. Syndicated modules help promote products from noncompeting therapeutic areas. Syndicate modules offer advantages such as increased market penetration, economies of scale, and opportunities for knowledge sharing and innovation. Syndicate modules have existed for a long time as companies initially invested lump sum amounts for marketing and promotions. Overall, this module provides a collaborative approach for pharmaceutical companies to enhance their sales and marketing efforts and drive business growth.

Syndicate teams are also used for product launches or to resist a new competitor and are particularly suited to seasonal products. The syndicate team includes a sales manager and medical representative team working with different manufacturers' products and not competing with each other. Contracts are usually signed on a four-month renewable basis, and 72 representatives make up a standard team. In France, players such as MBO and CLI Innovation focus on contract sales forces with recruitment activities for medical representatives and area managers. Nowadays, some companies are looking for short-term contract sales outsourcing and prefer syndicated modules for their product launches, especially for seasonal products such as anti-infectives.

Based on therapeutic area, the pharmaceutical contract sales organizations market is segmented into cardiovascular disorders, oncology, metabolic disorders, neurology, orthopedic diseases, infectious diseases, and others. The oncology segment held the largest market share in 2022 and is projected to register the highest CAGR during 2022–2030. According to GLOBOCAN 2020 estimates, ~19.3 million new cancer cases (18.1 million, excluding nonmelanoma skin cancer) and 10 million cancer deaths, or nearly one in six deaths (9.9 million, excluding nonmelanoma skin cancer), were reported globally in 2020. This has increased demand for pharmaceuticals used in oncology therapies and other cancer treatments and therapies. Oncology is one of the world's fastest-moving therapeutic areas, and it is expected to represent a major part of pharmaceutical sales in the future, creating a growing demand for pharmaceutical contract sales outsourcing in the oncology therapeutic area.

Pharmaceutical companies are looking forward to promoting their oncology products on a large scale in the highly competitive market to obtain a major share of the overall market. In addition, the introduction of new and innovative cancer therapies has also contributed to the growth of the pharmaceutical contract sales organizations market in the oncology segment. These complex therapies require specialized knowledge and expertise, which contract sales organizations can offer in order to effectively market and sell oncology drugs.

Moreover, the growing focus on personalized medicine and precision oncology has opened up new opportunities for pharmaceutical CSOs. These approaches require a more in-depth understanding of the patient population and their individual treatment needs, which can be enabled by pharmaceutical CSO services such as market research and key opinion leader (KOL) engagement. Therefore, the demand for pharmaceutical CSOs in the oncology therapeutic area is expected to continue to expand in the coming years due to the growing incidence of cancer and the ongoing development of novel and innovative cancer treatments and therapies, such as targeted therapies and immunotherapies.

Based on end user, the pharmaceutical contract sales organizations market is bifurcated into biopharmaceutical companies and pharmaceutical companies. The pharmaceutical companies segment held a larger market share in 2022. However, the biopharmaceutical companies segment is anticipated to grow at the fastest rate during 2022–2030. Pharmaceutical companies are the major end users of contract sales organizations (CSOs). These companies utilize CSOs as strategic partners to bolster their sales and marketing endeavors, streamline market access, and optimize resource allocation. 

Pharmaceutical companies are increasingly turning to CSO services due to the growing number of new small molecule drug launches worldwide, the presence of a significant number of pharmaceutical companies offering similar products, and the high adoption of new technologies for contract sales by companies. Moreover, recruiting and retaining efficient sales professionals for pharmaceutical companies is challenging; this supports the demand for CSO services for pharmaceutical companies. Pharmaceutical companies are increasingly looking to CSOs to help them build strong sales teams quickly, reduce sales team overhead costs, save time and effort on the recruitment process, and develop part-time contract sales teams to eliminate the need for investments. Thus, the growing focus of pharmaceutical companies on saving money and time is boosting sales opportunities for the pharmaceutical contract sales organizations market.

Regional Analysis:

Based on geography, the pharmaceutical contract sales organizations market is divided into five key regions: North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa. North America captured a significant share of the global market in 2022. The market growth in the region is attributed to the adoption of new technologies by contract sales organizations, the emphasis of pharmaceutical companies on boosting the sales of small-molecule and biopharmaceutical drugs, and an increase in focus on cutting down the costs incurred by in-house sales operations. The number of launches of new medicine has spiked over time. According to a report by IQVIA on R&D trends, 84 new active compounds were introduced globally in 2021, twice as many as introduced in the previous five years. The demand for contract sales services is anticipated to rise with the increase in drug releases internationally. North America accounts for the largest share of the pharmaceutical contract sales organization market. Key players such as EPS Corp.; IQVIA, Inc.; and Axxelus fuel the market growth in this region.

Pharmaceutical Contract Sales Organizations Market Regional Insights

The regional trends and factors influencing the Pharmaceutical Contract Sales Organizations Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Pharmaceutical Contract Sales Organizations Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Pharmaceutical Contract Sales Organizations Market Report Scope

Pharmaceutical Contract Sales Organizations Market Players Density: Understanding Its Impact on Business Dynamics

The Pharmaceutical Contract Sales Organizations Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Pharmaceutical Contract Sales Organizations Market are:

1. CMIC Holdings Co., Ltd.
2. Axxelus
3. EPS Holdings, Inc.
4. MaBico
5. IQVIA, Inc.

Disclaimer: The companies listed above are not ranked in any particular order.

Industry Developments and Future Opportunities:

Various initiatives taken by key players operating in the global pharmaceutical contract sales organizations market are listed below:

1. In September 2022, IQVIA, Inc. collaborated with pharmaceutical company Dr. Reddy's Laboratories. As per the arrangement, IQVIA provided Dr. Reddy's access to its Orchestrated Customer Engagement (OCE) platform to assist with its CRM operations. According to the partnership, Dr. Reddy's provided IQVIA's OCE application to all of its marketing users and field staff in India so they could more effectively engage customers by integrating marketing, account management, medical scientific liaison, sales, and other activities.
2. In July 2021, ICON plc—a global provider of outsourced drug and device development and commercialization services to the pharmaceutical, biotechnology, medical device, and government and public health firms—acquired PRA Health Sciences, Inc. The merger enhances the consulting, clinical, and commercial services portfolio, geographic presence, therapeutic capabilities, and data-powered healthcare technology of the ICON, which aims to provide internationally scaled expertise and solutions.

Competitive Landscape and Key Companies:

CMIC Holdings Co Ltd, Axxelus Inc, EPS Holdings Inc, MaBico SA, IQVIA Holdings Inc, Peak Pharma Solutions Inc, QFR Solutions LLC, Promoveo Health LLC, Syneos Health Inc, and Mednext Pharmaceuticals Pvt Ltd are among the top pharmaceutical contract sales organizations. These companies focus on new technological services, advancements in existing services, and geographic expansions to meet the growing consumer demand worldwide.