Real world evidence refers to the clinical data about the proven benefits and risks associated with pharmaceutical drugs collected from the in-depth analysis of real world data about patient health status. The data obtained from real-world evidence or data collected from past clinical trials demonstrate the potential effect of pharmaceutical drugs or response of treatment on patients toward particular disease indications. It is a well-known fact that drug discovery and development is a time-intensive and complex process—it requires a significant amount of capital investment (around USD 2.6 billion), resources, and raw materials, followed by clinical trials. In fact, the journey from drug discovery to development and final product commercialization consumes around 10-12 years.
Additionally, the regulatory approval also requires evidential proof of clinical trial results that consume 40% of the pharmaceutical drug development budget in the United States, as per the report of Roots Analysis. However, clinical trials are fraught with several challenges, including unforeseen delays, errors, failure risk, patient compliance, and typical data management. Since past clinical trials have been conducted under controlled conditions and include homogenous human volunteers, there is a chance that the approved products may fail to perform adequately on real patients. The insight from real-world evidence enables researchers to validate the therapeutic potential of biological entities. It is worth noting here that real-world evidence data may save up to USD 1 billion per year (the cost of conducting clinical trials). Notably, real-world evidence can also match the results of clinical trials, therefore helping in the quick validation of therapeutic drugs. The increasing adoption of real-world evidence for making healthcare decisions and clinical validation is projected to grow the real world evidence solutions market in the future. In this context, let’s take a sneak peek at insight into the market.
Current Real-World Evidence Solutions Market Overview
Presently, the real-world evidence solutions market landscape features 230 industry players who claim to provide a wide range of real-world data collection and analysis solutions to generate actionable insights from different sources. Overall, the market seems highly fragmented, featuring the presence of various new entrants, small and mid-sized companies who are offering real-world data associated services to the life science and pharmaceutical industries. It is interesting to note here that several pharmaceutical companies spend around USD 20 million on an annual basis to generate real-world evidence that supports their clinical development programs. Real-world data insight has significantly influenced therapeutic product approval-related decisions. Driven by the increasing trend of using real world evidence solutions, the market is anticipated to grow at a CAGR of 15% from 2023-2035.
Real World Evidence Solutions Market Drivers
With growing requirements for evidence-based medicine, key pharmaceutical companies have begun to rely on real-world evidence to make informed decisions about drug development and treatment plans. Real-world evidence offers better insights into the effectiveness, efficacy, and safety of therapeutic interventions in real-world settings that complement conventional clinical trial data. Several other real world evidence solutions market drivers that are propelling the market are mentioned below:
▪ Growing Support From Regulatory Authorities
The growing understanding of real-world evidence’s importance in the drug approval process and post-market surveillance becomes a key parameter of receiving support from regulatory authorities. Owing to the increasing awareness, the FDA has initiated the Real-World Evidence program, which is driving the widespread adoption of real-evidence solutions by drug developers and healthcare organizations. The growing support from regulatory authorities is anticipated to drive the market in the upcoming years.
▪ Advances in Data Analytics and Technology
Advances in technologies such as artificial intelligence, data analytics, and machine learning enable accurate analysis of large-scale, real-world data sets. The real-world evidence solutions market leaders are leveraging these technologies to extract meaningful insight from a wide range of data resources, such as patient records, electronic health records, and wearable devices. The technological advancements adopted by the industrial leaders of the real-world evidence solutions market are anticipated to become a key factor that drives growth in the field.
Leading Industrial Players in Real World Evidence Solutions Market
Over time, the data insight from real-world evidence enables pharmaceutical companies to make better decisions about drug discovery processes and final outcomes. Further, real-world evidence solutions help to reduce the risk of product failure and ultimately improve approval outcomes. Owing to the ongoing usage of real-world evidence solutions, several players have shown active interest in this field to provide better solutions that can facilitate the research for the development of personalized medicine. Some of the leading players in the real world evidence solutions market are listed below:
⬝ Clinerion
⬝ Clinigen Group
⬝ Cognizant Analytics
⬝ Evidera
⬝ HealthCore
⬝ IBM
⬝ ICON
⬝ IQVIA
⬝ Medpace
⬝ NorthWest EHealth
⬝ Optum Insight
⬝ Oracle
⬝ PAREXEL
⬝ Perkin Elmer
⬝ SAS
⬝ Syneos Health
⬝ TriNetX
Recent Developments in Real World Evidence Solutions Market
It is worth highlighting here that the real-world evidence solutions market is witnessing several developments and collaboration activities. Some examples of the key development activities that have taken place in this field are listed below:
⬝ In September 2023, HealthVerity announced the launch of HeathVerity Audience Manager, which offers life sciences organizations and media agencies a truly self-directed analytics environment that allows previously unattainable insights about patient behavior in combination with social determinants of health, all comes under privacy protected HIPAA-compliant manner.
⬝ In July 2023, nference and Vanderbilt University Medical Center entered into a strategic collaboration with an aim to advance real-world evidence generation within complex disease populations.
⬝ In July 2023, Thermo Fisher Scientific acquired CorEvitas by making a considerable investment of USD 912.5 million in order to strengthen its regulatory-grade, real-world evidence for approved pharmaceutical therapies and medical treatment.
Concluding Remarks
In conclusion, the real world evidence solution market continues to expand in the future owing to the increasing support from regulatory authorities and flexibility offered by the valuable data for drug approval. Further, healthcare providers are currently witnessing the burden of optimizing their resource allocations to reduce treatment costs and improve patient outcomes. Real world evidence solutions play a crucial role in identification of cost-effective treatment and improve patient adherence. As the demand for real world evidence solutions increases to support drug approval, the market will grow substantially in the foreseen future.
About Roots Analysis
Roots Analysis is a global leader in the pharma / biotech market research. Having worked with over 750 clients worldwide, including Fortune 500 companies, start-ups, academia, venture capitalists, and strategic investors for more than a decade, we offer a highly analytical / data-driven perspective to a network of over 450,000 senior industry stakeholders looking for credible market insights. All reports provided by us are structured in a way that enables the reader to develop a thorough perspective on the given subject. Apart from writing reports on identified areas, we provide bespoke research / consulting services dedicated to serving our clients in the best possible way.
