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Global HEOR Service Industry Report: By Drugs: Developing Drugs, Approved Drugs; By Offering: In-house, Outsourced; By Service: Real World Evidence, Payer Evidence, Pricing and Reimbursement, Epidemiology Studies, Market Access; By End-Use: Healthcare Providers, Government Organizations, Others; Regional Overview; Value Chain Analysis; Market Dynamics; Industry Best Practices; Key Supplier Analysis, 2022-2027

HEOR Service Market Outlook


The Procurement Resource global HEOR Service industry report broadly studies the critical divisions, HEOR market trends, drivers, restraints, the economically driven landscape, and other critical market attributes.

The global HEOR market size gained a total value of overall USD 1364.3 million in 2021. Moreover, the industry is likely to grow at a CAGR of around 12.81% in the near period of 2022-2027 to attain a value of approximately USD 2779.2 million by 2027.

The health economics and outcomes research (HEOR) market is expanding owing to extensive application in different industries. Also, the lack of skilled personnel will likely be impacted by the investment in technology and infrastructure in 2021-2022. The most important demand value in the industry report is the maximum category spender by region that is, North America.

Industry Definition and Segmentation

The function of HEOR services in a pharmaceutical or life science firm is to generate testimony or data of a recently launched medicine or drug. These services are also used to make other mediation for compensation and healthcare customers. The HEOR service industry report involves HEOR functions such as by drug, service, offering, and end-use.

Drug the application includes developing drugs and approved drugs for better clinical development outcomes. Service functions incorporates real-world evidence, payer evidence, pricing and reimbursement, epidemiology studies, and HEOR market access. Offering applications are both subcontracted and in-house. Lastly, end-use offers healthcare suppliers, government organisations, biotech and HEOR companies, and healthcare payers.

North America Region is Driving the Growth of the Industry

The global health economics and outcomes research pharma market are developing at a sufficient percentage, and worldwide demand is expected to expand. The North American region is a leader in the HEOR market because it emphasises cost-based care and outstanding outcomes in pharmaceutical research. Several effective leading competitors existing in the United States is engaged in researching medicines and has favourable government laws.

The HEOR market in Europe is also projected to expand due to the substantial use of enhanced drugs and medication processes and economic modelling evaluation. The market is likely to be pushed by increasing usage in several end-use industries. Also, it is primarily propelled by obligatory health technology assessment (HTA) compliance conditions and the expanding effect of real-world testimony in price evaluation and reimbursement. All these factors are impacting the HEOR market price.

Pharmaceutical companies in the HEOR market are using big data analytics and m-health technologies to expand their operations, resulting in increased outsourcing. The outsourcing of these services has grown without the rise in the headcount due to the cost-cutting in the pharmaceutical industry.

The lack of training in genetics and defining sub-group populations affects the procurement of HEOR. Moreover, the absence of regulation in the HTA conditions is also impacting the HEOR market.

Category Management Studies

The HEOR services market is growing as more pharmaceuticals are developed, and there is a greater need for orphan drugs. This market provides a significant opportunity to set pricing for these products effectively. More HTA organizations worldwide require real-world evidence, which is expected to increase the application of disrupting tools such as big data analytics and m-health.

Outsourcing Industry is Expected to Promote the HEOR Usage

Because of the high ranking of subcontracting, the HEOR market is growing at a satisfactory pace. The market is established, with fresher private equity and data analytics companies move into the HEOR space. New regulations require more evidence and data from real-world sources, resulting in developing and adopting new technologies like big data analytics, m-Health, and bioinformatics.

Since the work is crucial, businesses are cautious to offshore to evolving markets. The HEOR market corporate approach aims on delivering the greatest quality scientific research in the fastest timeframe and at the most acceptable expense through skilled and extremely certified employees and certifiable procedures.

There are five regional markets that divides the global HEOR market: Latin America, North America, , the Asia Pacific, Europe, and the Middle East and Africa.

Key Players

  • IQVIA Inc.
  • Medpace Holdings, Inc.
  • Labcorp Drug Development (Formerly Convance)
  • Syneos Health (Nasdaq: SYNH)
  • McKesson Corporation

Market Landscape

Client-Related Dynamics Largely Impact HEOR Invoicing: Clinical service charging fee fluctuates varying on the HEOR data and the client's requirements. The billing rates for HEOR services are influenced by factors related to the client and the supplier. Client size, type, and clinical spend categories can all affect the complexity of services and procedures.

Supplier-related factors include the type of supplier, the availability of clinical development units and facilities, and technology investment. Market-related factors include the collaboration with other companies like hospitals and patient recruitment firms. Market conditions can impact a company's ability to comply with new regulations or industry guidance.

Demand and Supply Overview

Due to a change in the number of clinical trials in these regions, accessibility of patient group, decrease full-time employee (FTE) rate, and quick technology integrated medical devices by providers, the change to virtual has intensified demand in advanced markets.

The Asia Pacific region, however, will find mild demand because of the fluctuating clinical trials in these regions, readiness of patient group, lesser FTE ratio, and swift technology incorporation by providers, likely to create new HEOR market opportunities for players. Fee-for-service and Time & Management (T&M) are this category's highly familiar pricing terms. T&M is a invoicing approach for private consultants that can be expensive.

The reported segment is shifting toward tactical partnerships as the HEOR market strengthens, with end-to-end service sources. Hiring consultants to collect initial data points for applicant selection in the early stages of a project may be necessary. As a result of supplier base consolidation, pharma companies will form strategic agreements with full-service HEOR providers rather than sub-category experts in the future.

Key Initiatives by Companies

  • The ICER has adopted Niche Players' real-world evidence platform, which develops norms for using transparent, repeatable real-world evidence in health technology evaluation.
  • Through outcomes analysis, the SAFTINet group of clinical organizations, payers, academics, and informatics professionals seeks to understand healthcare's effects better.

1.    Executive Summary
2.    HEOR Services Snapshot

    2.1.    HEOR Services Outlook
    2.2.    HEOR Services Category Analysis, By Drugs
        2.2.1.    Developing Drugs
        2.2.2.    Approved Drugs 
    2.3.    HEOR Services Category Analysis, By Offering
        2.3.1.    In-house
        2.3.2.    Outsourced
    2.4.    HEOR Services Category Analysis, By Service
        2.4.1.    Real World Evidence
        2.4.2.    Payer Evidence
        2.4.3.    Pricing and Reimbursement
        2.4.4.    Epidemiology Studies
        2.4.5.    Market Access
    2.5.    HEOR Services Category Analysis, By End-Use
        2.5.1.    Healthcare Providers
        2.5.2.    Government Organizations
        2.5.3.    Biotech and Pharma Companies
        2.5.4.    Healthcare Payers
    2.6.    Regional Overview
        2.6.1.    North America
        2.6.2.    Latin America
        2.6.3.    Europe
        2.6.4.    Asia Pacific 
        2.6.5.    Middle East and Africa
3.    Impact of Recent Events 
4.    HEOR Value Chain Analysis
5.    HEOR Cost Structure

    5.1.    Cost-saving opportunities 
6.    HEOR Billing Rate Overview
7.    Key Demand Indicator Analysis
8.    Key Price Indicator Analysis
9.    HEOR Market Dynamics

    9.1.    Drivers & Constraints
    9.2.    Industry Events 
    9.3.    Innovations & Trends
    9.4.    Porter’s Five Forces
        9.4.1.    Buyer Power
        9.4.2.    Supplier Power
        9.4.3.    Threat of New entrants
        9.4.4.    Threat of Substitutes
        9.4.5.    Industry Rivalry
10.    Industry Best Practices
    10.1.    Sourcing strategies 
    10.2.    Procurement Model
    10.3.    Negotiation Levers
    10.4.    Supplier Selection Criteria
    10.5.    Pricing Model
11.    Key Supplier Analysis
    11.1.    IQVIA Inc. (formerly Quintiles and IMS Health, Inc.)
    11.2.    Medpace Holdings, Inc.
    11.3.    Labcorp Drug Development (Formerly Convance)
    11.4.    Syneos Health (Nasdaq:SYNH)
    11.5.    McKesson Corporation

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Key Questions Answered in the Report

The global HEOR market achieved a value of about USD 1364.3 million in 2021.

In the HEOR market forecast period of 2022-2027, the global HEOR market would possibly move forward at a CAGR of 12.81%.

The HEOR procurement strategies include contract terms, engagement models, negotiation levers, and sourcing strategies.

The current trends witnessed in HEOR procurement are the procurement practices involving engagement models, sourcing, pricing, contract, technology, governance, and order management.

The increased use of HEOR in end-use applications, mandatory HTA submission requirements, and the growing impact of real-world evidence in P&R are all expected to drive HEOR market growth.

Lack of uniformity of HTA requirements and lack of experience with genomes and defining sub-group populations for successful outcome demonstration are the constraints on market growth.

IQVIA, Parexel, Convance, Syneos, and PPD are the HEOR market key players.

The increasing HEOR market demand for virtual processing in developed economies has been exacerbated by a shift in number of clinical trials in these regions, the availability of patient pool, the lower full-time employee (FTE) rate, and the rapid technology integration by suppliers. HEOR is primarily outsourced to international companies (consultants or CROs), that hire dedicated experts.

Key cost components for the category include Salary, overheads, technology/software, database access, and others.

Health economics and outcomes research is the complete form of the term.

The service is used to understand the effectiveness of a specific drug.

Analyst Review

The global HEOR market reached a value of about USD 1364.3 million in 2021 and is expected to grow further at a CAGR of approximately 12.81%. The HEOR industry outlook comprises its applications such as by drug, service, offering, and end-use.

The HEOR market share is expanding at a reasonable rate, and global demand is predicted to grow. The North American region emphasises several clinical trials, value-based care and exceptional results in pharmaceutical research, thus leading the HEOR market. The market for clinical data services is anticipated to expand.

This is likely because of the rising demand from a variety of industries, an increase in clinical trials brought on by the need to submit information for health technology assessments, pharmaceutical product development (PPD), HEOR pharmaceutical marketing and a growing influence of real-world evidence on pricing and reimbursement. IQVIA, Parexel, Convance, Syneos, and PPD are some of the critical suppliers of HEOR.

Procurement Resources' team of experts uses a combination of cutting-edge analytical tools and their expertise to explore the macro and micro aspects of the industry.

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