The global HEOR market reached a value of about USD 1364.3 million in 2021. The industry is further expected to grow at a CAGR of about 12.81% in the forecast period of 2022-2027 to reach a value of around USD 2779.2 million by 2027.
The global HEOR Service industry report gives a comprehensive analysis of the industry including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The HEOR industry is expected to be affected by the shortage of skilled labour due to the investment in technology and infrastructure in 2021-2022. The key demand indicator in the industry report, is the highest category spender by region—North America.
The HEOR functionality in a pharmaceutical or life science company is to produce evidence and proofs of the value of a new medicine or drug and other intervention for reimbursement and healthcare payers. The HEOR service industry report comprises HEOR applications such as by drug, service, offering, and end-use. Drug application includes developing drugs and approved drugs. Service applications include real-world evidence, payer evidence, pricing and reimbursement, epidemiology studies, and market access. Offering applications are outsourced and in-house. Finally, end-use provides healthcare providers, government organisations, biotech and pharma companies, and healthcare payers.
The HEOR market is expanding at a reasonable rate, and global demand is predicted to grow. The North American region is putting emphasis on value-based care and exceptional results in pharmaceutical research, making it one of the leading regions in the HEOR market. Many active top players present in the United States are involved in doing research on medicines and have beneficial government laws. Furthermore, because of the significant usage of advanced drugs and treatment methods, Europe is also expected to grow in the HEOR market. The HEOR market is expected to be driven by rising usage in various end-use industries. The HEOR market is majorly driven by mandatory health technology assessment (HTA) submission requirements and the growing impact of real-world evidence in pricing and reimbursement. Pharmaceutical companies are being forced to expand beyond their comfort zones, by employing big data analytics and m-health technologies, which is driving a lot of outsourcing. Cost-cutting in the pharmaceutical industry has led to a rise in outsourcing these services without an increase in headcount.
The HEOR procurement is affected by the lacking experience with genetics and defining sub-group populations to demonstrate effective outcomes. In addition, there is a lack of standardization in the HTA requirements.
The Health Economics and Outcomes Resource (HEOR) industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by the major consumers of HEOR across the globe, such as engagement models, sourcing strategy, pricing model, contract model, technology strategy, governance model and order management.
The necessity to evaluate the market for potential and effective product pricing is increasing due to an increase in the number of pharmaceuticals in large pharma product pipelines and the desire for orphan drugs to address unmet medical requirements of patients. In addition, the entry of disruptive technologies, such as big data analytics and m-health, is expected to increase in the future, as more HTA organizations around the world require real-world evidence. As a result, the market is expected to grow further, primarily due to the increasing requirement of evidence-based approaches to demonstrate the value of the drug.
Due to the high level of outsourcing, the HEOR market is developing at a reasonable rate. The market is consolidating, with newer private equity and data analytics firms entering the HEOR space. Regulations requiring more real-world evidence and outcome data are also causing disruptive developments such as big data analytics, m-health, bioinformatics, and other patient intelligence technologies to enter the market. Because the work is critical, companies are hesitant to offshore to emerging economies. The market business strategy focuses on providing the best quality scientific research in the quickest timeframe and at the most reasonable cost through expert and highly trained employees and verifiable processes.
The regional markets for the HEOR industry can be divided into North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.
Client-Related Factors Mostly Influence HEOR Billing: Clinical service billing rate varies depending on the project and the client’s needs. The billing rates are influenced by client-related parameters such as client size and type (pharma/biotech), the client spends on specific clinical categories, the complexity of services/procedures, length of engagement, etc. Apart from Client- related factors, supplier and market-related factors also influence the HEOR billing like for supplier-related characteristics, type of suppliers engaged: contract research organization (CRO)/ technology providers/specialists; Availability of clinical unit, facility, equipment; technology investment; partnership with other firms like hospitals, patient recruitment organizations, technology providers.
Market-related factors like new technologies in the clinical sector; regulatory compliance, inflation, compliance to new regulation/industry guidance by FDA/WHO/CDC.
Due to a shift in clinical trials to these regions, availability of patient pool, lower full-time employee (FTE) rate, and rapid technology integration by suppliers, the move to virtual has exacerbated demand in developed economies. However, the APAC region will see moderate demand due to shifting in clinical trials to these regions, availability of patient pool, lower FTE rate, and rapid technology integration by suppliers. The majority of HEOR is outsourced to global players (consultants or CROs), who then hire specialized players as needed. Fee-for-service and Time & Management (T&M) are the most common pricing words in this category. T&M is a billing system for independent consultants that can be costly. The FTE model can only be employed when a certain expert is required for a long period of time and T&M payments become prohibitively expensive. As the market consolidates, the sector is moving toward strategic alliances with end-to-end service providers. In the early stages of a project, it may be necessary to hire specialty consultants on a day-rate basis to gather preliminary data for candidate selection. 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.
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
2.4. 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
2.6.4. 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
In 2021, the global attained a value of around USD 1364.3 million.
In the forecast period of 2022-2027, the market is projected to grow at a CAGR of 12.81%.
The HEOR procurement strategies include contract terms, engagement models, negotiation levers, and sourcing strategies.
The procurement practices involve engagement models, sourcing strategy, pricing model, contract model, technology strategy, governance model, and order management are the current trends being witnessed in HEOR procurement.
The rising usage of HEOR in end-use, the HEOR market is majorly driven by mandatory HTA submission requirement, and the growing impact of real-world evidence in P&R are expected to drive the HEOR category 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 the growth of the market.
IQVIA, Parexel, Convance, Syneos, and PPD are the key suppliers of HEOR.
Due to a shift in clinical trials to these regions, availability of patient pool, lower full-time employee (FTE) rate, and rapid technology integration by suppliers, the move to virtual processing has exacerbated demand in developed economies.The majority of HEOR is outsourced to global players (consultants or CROs), who then hire specialized players as needed.
Key cost components for the category include Salary, overheads, technology/software, database access, and others.
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 about 12.81%. The HEOR service industry report comprises HEOR applications such as by drug, service, offering, and end-use. The market is expanding at a reasonable rate, and global demand is predicted to grow. The North American region is putting emphasis on value-based care and exceptional results in pharmaceutical research, making it one of the leading regions in the HEOR market. The market is expected to be driven by rising usage in various end-use industries and is majorly driven by mandatory health technology assessment (HTA) submission requirements and the growing impact of real-world evidence in pricing and reimbursement. IQVIA, Parexel, Convance, Syneos, and PPD are some of the key suppliers of HEOR.
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The global HEOR market reached a value of about USD 1364.3 million in 2021. The industry is further expected to grow at a CAGR of about 12.81% in the forecast period of 2022-2027 to reach a value of around USD 2779.2 million by 2027.Read More