This is a turbulent time for most CROs. As many existing or prospective customers are merging or going out of business, many companies are finding it difficult to grow or even maintain revenues. Moreover, CROs are now investing more money as a percentage of revenue into business development activities, in an effort to boost business - that puts more pressure on short term profitability. Here are a few highlights from the industry:
1. AMRI invests in European R&D in Hungary, and sees revenue growth in discovery mostly due to the new Singapore site where it dominates chemistry outsourcing for Singapore's rapidly growing life sciences industry.
2. Covance experiencing decline in preclinical demand, in line with many R&D programs being frozen during the first part of the year.
3. deCODE sheds medicinal chemistry and structural biology units, unable to compete in a fragmented and crowded marketplace with many low-cost players.
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