Drug Discovery Outsourcing Market On The Basis Of Workflow, Therapeutics Area, Drug Type, And Region

Drug Discovery Outsourcing Market On The Basis Of Workflow, Therapeutics Area, Drug Type, And Region

Drug Discovery Outsourcing Industry Overview

The global drug discovery outsourcing market size was valued at USD 3.3 billion in 2021 and is anticipated to grow at a compound annual growth rate CAGR of 7.4% over the forecast period.

According to a survey conducted by Life Science Strategy Group of 120 clinical development decision-makers in the U. S., Europe, and China, industry professionals are undertaking major strategic changes to maintain their share in the unpredictable market scenario post the COVID-19 pandemic. The pharmaceutical industry has witnessed radical changes in the past two decades, in terms of a shift toward biologics, patent expiration, and unprecedented downsizing of internal discovery of big pharmaceuticals. All of this has accelerated the adoption of outsourcing activities.

Gather more insights about the market drivers, restrains and growth of the Global Drug Discovery Outsourcing Market

Breaking down the different steps of drug discovery, such as hit confirmation, lead generation, lead optimization, and high-speed screening allows players to specialize in their core services. An estimated 75.0% to 80.0% of R&D spending in the biopharmaceutical industry can be outsourced, creating opportunities for Contract Research Organizations (CROs), which, in turn, is expected to boost the market growth. Pharmaceutical companies are partnering with manufacturing facilities in developing countries, which are backed by skilled manpower, low cost, and quality data. Cost-cutting, chasing innovation, gaining access to specialized knowledge and technology, and increasing speed and agility are some of the significant factors encouraging pharma companies to expand the level of outsourcing.

This, in return, is expected to increase competition among key players, leading to the emergence of various new startups across the hotspot regions, such as the U.S., China, India, South Korea, Singapore, and other southeast Asian countries. For instance, in July 2018, Syngene International Ltd., a leading CRO based in India, extended its R&D collaboration with Baxter Healthcare Corporation until 2024. In March 2018, the company formed a multi-year agreement with GlaxoSmithKline (GSK) to accelerate the discovery of new drug candidates. The COVID-19 pandemic has slowed down various drug discovery processes due to the halting of various clinical trials.

However, on a brighter note, generous incentives are expected for pharmaceutical companies to invest in developing Infectious Diseases (ID) drugs and vaccines. Public health challenges in oncology, heart disease, and many other rare conditions still exist. For these, clinical research must go on. Here, CROs are expected to utilize their creativity to the fullest. With an urgent need for an effective vaccine/drug, companies are increasingly opting for outsourcing to enhance their clinical trials, which is expected to boost market growth for several years.

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Drug Discovery Outsourcing Market Segmentation

Grand View Research has segmented the global drug discovery outsourcing market on the basis of workflow, therapeutics area, drug type, and region:

  • Drug Discovery Outsourcing Workflow Outlook (Revenue, USD Million, 2017 – 2030)
    • Target Identification & Screening
    • Target Validation & Functional Informatics
    • Lead Identification & Candidate Optimization
    • Preclinical Development
    • Other Associated Workflow
  • Drug Discovery Outsourcing Therapeutics Area Outlook (Revenue, USD Million, 2017 – 2030)
    • Respiratory System
    • Pain and Anesthesia
    • Oncology
    • Ophthalmology
    • Hematology
    • Cardiovascular
    • Endocrine
    • Gastrointestinal
    • Immunomodulation
    • Anti-infective
    • Central Nervous System
    • Dermatology
    • Genitourinary System
  • Drug Discovery Outsourcing Drug Type Outlook (Revenue, USD Million, 2017 – 2030)
    • Small Molecules
    • Large Molecules (Biopharmaceuticals)
  • Drug Discovery Outsourcing Regional Outlook (Revenue, USD Million, 2017- 2030)
    • North America
    • Europe
    • Asia Pacific
    • Latin America
    • MEA

Market Share Insights

  • November 2020: AstraZeneca collaborated with 9 of the foremost oncology medical centers to expedite research in some of the hardest-to-treat cancers. The company will be funding clinical and non-clinical research proposals from members of this network.
  • June 2020: AstraZeneca collaborated with Accent Therapeutics to discover, develop and commercialize transformative therapeutics targeting RNA-Modifying Proteins (RMPs) for the treatment of cancer.

Key Companies profiled:

Some prominent players in the Drug Discovery Outsourcing market include

  • Albany Molecular Research Inc.
  • Laboratory Corporation of America Holdings
  • GenScript
  • Pharmaceutical Product Development, LLC
  • Charles River
  • WuXi AppTec
  • Merck & Co., Inc.
  • Thermo Fisher Scientific Inc.
  • Dalton Pharma Services
  • Oncodesign
  • Jubilant Biosys
  • DiscoverX Corp.

Order a free sample PDF of the Drug Discovery Outsourcing Market Intelligence Study, published by Grand View Research. 

Grand View Research, Inc. is a market research and consulting company that provides off-the-shelf, customized research reports and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and energy. With a deep-seated understanding of varied business environments, Grand View Research provides strategic objective insights. For more information, visit http://www.grandviewresearch.com

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