Trial software space an investment opportunity, new analysis says
The clinical trial management and analytics software sector is an opportunity for the investment community, according to analysis by Lincoln International.
The value of the clinical trial software market is growing 13.6% a year and will be worth $3.5 billion by 2030, according to Lincoln’s analysts, who said the biopharma industry demand for data management and regulatory compliance software is driving growth.
“Innovation and technology are transforming the clinical trial landscape in many ways, including by improving patient recruitment through predictive modelling and optimizing data analysis during trials,” the report said.
The analysts cited recruitment as an example, explaining, “Cutting-edge software can now predict patient eligibility, shortening recruitment times by as much as 30%, while machine learning algorithms help identify potential safety concerns earlier.”
Wearable devices – which gather data from trial participants in real-time – and remote monitoring tools are another reason investors should consider the trial software sector, according to the analysts.
“These improvements offer a clear financial incentive for pharmaceutical companies and contract research organizations to adopt these innovations. Moreover, as decentralized trials grow, clinical trial software will be crucial in expanding access to more diverse patient populations.”
The Lincoln team also highlighted the high degree of differentiation in the trial software market as a potential boon for investors.
“Companies with strong differentiation, such as specialized software for rare disease trials, regulatory compliance, or partnerships with major pharmaceutical firms, have established a competitive edge.
“Investors should prioritize firms with unique capabilities that align with market needs,” they wrote.
Lincoln’s take fits with M&A activity in the trial software space in recent months.
In June, Arsenal Capital Partners acquired Endpoint Clinical, a provider of software-based randomization and trial supply management services from Fortrea.
And, in August, EQT bought Belgian risk-based quality management and data quality oversight tech firm CluePoints.
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