Global Drug Discovery Outsourcing Market Size is Estimated to Reach USD 6370 million by 2030, Growing at a CAGR of 7.6%: Straits Research

North America's drug discovery outsourcing industry share leads with a 6.8% CAGR, driven by the U.S.'s dominant role in pharmaceutical sales and R&D investment. Europe follows with a 7.1% CAGR, propelled by collaborative efforts like the European Lead Factory.

New York, United States, March 04, 2024 (GLOBE NEWSWIRE) -- Outsourcing drug development is a method for discovering novel drugs or therapies in several pharmaceutical, pharmacology, and biochemistry domains. In addition, outsourcing drug discovery initiates the medication development process.

The rise in the prevalence of partnerships in drug discovery research is one of the most significant reasons driving the need for an expansion of the worldwide drug discovery outsourcing market. In addition, the increasing prevalence of genetic, metabolic, and other chronic diseases, technological developments, medication discovery, and research contribute to the expansion of the market over the projection period. In addition, the rising adoption of AI in the drug discovery process, the shift in patent biologics, their expiration, and the extraordinary downsizing of internal drug research by big pharmaceuticals are projected to boost the market growth.

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Increasing Number of Partnerships in Drug Discovery Research to Drive the Global Drug Discovery Outsourcing Market

According to Straits Research, “The global drug discovery outsourcing market size was valued at USD 3,295 million in 2021 and is estimated to reach an expected value of USD 6370 million by 2030 at a CAGR of 7.6% over the forecast period (2022-2030).” The market for drug discovery outsourcing is anticipated to be propelled by the increasing number of collaborations and utilization of expertise by businesses. Organizations are forming and expanding strategic alliances with several academic institutions, venture capitalists for investment, and other private or public firms to utilize patented technologies, chemicals, and more. Increasing public- or private-sector alliances expedites drug discovery procedures, increasing the global outsourcing industry for drug discovery.

In June 2017, Eisai extended its relationship with Charles River Laboratories International, Inc., a CRO specializing in early-stage drug research for neurological and tropical disorders. Consequently, these collaborations increase the demand for identifying better drug candidates, which is anticipated to stimulate market growth. 

Rising Incidence Rates of Metabolic, Genetic, and Other Chronic Diseases Provide Opportunities for the Global Drug Discovery Outsourcing Market

Numerous individuals suffer from diseases such as diabetes, cancer, malaria, cardiovascular, cystic fibrosis, multiple sclerosis, and many others, which increases the demand for innovative treatments. In 2014, Cancer Research UK reported approximately 163,444 cancer-related fatalities and 356,860 new cancer cases, equating to about 980 new patients diagnosed daily. In addition, it is anticipated that by 2030, 23.6 million additional instances of cancer will be diagnosed annually across the globe. According to WHO figures, cancer was the top cause of death globally in 2015, accounting for over 8.8 million lives. Besides cancer, cardiovascular disease was responsible for 17.7 million deaths worldwide in 2015.

According to the World Health Organization, TB was responsible for 1.4 million deaths in 2010. By 2025, the number of diabetic patients will reach 300 million due to incorrect food, obesity, an aging population, and a sedentary lifestyle. In 2015, around 212 million malaria cases were reported globally, with an incidence rate of 94 per 1,000 people. Indirectly, the expansion of the drug discovery outsourcing market will be stimulated by an increase in organizations focusing on new chemical creation to find alternative treatments for chronic illnesses and rising mortality rates.

Key Highlights

  • By workflow, the global drug discovery outsourcing market is bifurcated into target identification & screening, target validation & functional informatics, lead identification & candidate optimization, preclinical development, and another associated workflow. The lead identification & candidate optimization segment dominated the market and is estimated to register a CAGR of 7.7% during the forecast period. 
  • By therapeutics area, the global drug discovery outsourcing market is segmented into pain and anesthesia, oncology, respiratory system, ophthalmology, hematology, endocrine, gastrointestinal, immunomodulation, anti-infective, cardiovascular, central nervous system, dermatology, genitourinary system. The respiratory system segment dominated the market and is estimated to register a CAGR of 6.9% during the forecast period.
  • By drug type, the global drug discovery outsourcing market is segmented into small and large molecules (biopharmaceuticals). The small molecule segment dominated the market and is estimated to register a CAGR of 6.9% during the forecast period.

Regional Insights

By region, the global drug discovery outsourcing market is bifurcated into Europe, North America, Asia Pacific, Latin America, Middle East & Africa. 

North America dominated the market share and is estimated to register a CAGR of 6.8% during the forecast period. The United States is among the most important markets in the international pharmaceutical business, accounting for around 80% of global pharmaceutical sales. The drug discovery outsourcing market in the U.S. is propelled by factors such as developed infrastructure, increased R&D spending, and increased incidence of various diseases. In addition, public-private partnerships aimed at creating innovative therapeutic compounds are also anticipated to impact market expansion in this region significantly. In addition, since 1965, the U.S. pharmaceutical industry has produced more innovative drug compounds than its European and Japanese rivals every five years. A significant aspect that makes the United States an attractive location for pharmaceutical R&D investment is the considerable pricing flexibility of pharmaceutical businesses. This allows them to recuperate their R&D expenditures and fosters increased output.

Europe is the second largest region. It is estimated to reach an expected value of USD 17 million by 2030 at a CAGR of 7.1%. The potential of the UK drug discovery outsourcing market is anticipated to develop as a result of the government's research programs in collaboration with a large number of private firms. The European Lead Factory, a public-private partnership, created a platform for identifying previously unattainable high-quality medicinal compounds. Seven elite companies, including AstraZeneca, Bayer Pharma, Merck KGaA, Lundbeck, UCB Pharma, Janssen Pharmaceuticals, and Sanofi, joined together to grant European researchers access to their protected compound libraries. Screening labs in the United Kingdom and the Netherlands use high throughput screening to evaluate about 50,000 potent chemicals. Research councils in the United Kingdom, such as the Engineering and Physical Sciences Research Council (EPSRC), the Biotechnology and Biological Sciences Research Council (BBSRC), the Science and Technology Facilities Council (STFC), and the Medical Research Council (MRC), provide funding to accelerate healthcare research, which is anticipated to have a positive effect on the country's market growth.

Asia Pacific is the third largest region. During the projected period, the drug discovery outsourcing market in Asia-Pacific is anticipated to experience the highest growth. As most patients in this region pay out-of-pocket for pharmaceuticals, the expanding economies of Asian nations are a significant factor contributing to the development of this market. Ongoing drug discovery research, private-public partnerships, and government initiatives are a few additional reasons projected to drive the expansion of the Asian drug discovery outsourcing market.

Competitive Landscape

Major global drug discovery outsourcing companies are Curia, EVOTEC, Laboratory Corporation of America Holdings, GenScript, Pharmaceutical Product Development, LLC, Charles River Laboratories, Thermo Fischer Scientific, Inc., Merck & Co., Inc., Oncodesign, Jubilant Biosys., Qiagen and Discoverx Corporation

Market News

  • June 2022 - Curia, a leading agreement research, advancement, and manufacturing organization, and Replicate Bioscience, healthy groundbreaking ways to prevent drug resistance in cancer and treat autoimmune and inflammatory disorders and other diseases using self-replicating RNA (srRNA), have announced a collaboration on a robust development platform for Replicate's siRNA therapeutics. The strategic partnership brings together two industry leaders in RNA therapies.

Global Drug Discovery Outsourcing Market: Segmentation

By Workflow

  • Target Identification & Screening
  • Target Validation & Functional Informatics
  • Lead Identification & Candidate Optimization
  • Preclinical Development
  • Other Associated Workflow

By Therapeutics Area

  • Respiratory System
  • Pain and Anesthesia, Oncology
  • Ophthalmology
  • Hematology
  • Cardiovascular
  • Endocrine
  • Gastrointestinal
  • Immunomodulation
  • Anti-Infective
  • Central Nervous System
  • Dermatology
  • Genitourinary System

 By Drug Type

  • Small Molecules
  • Large Molecules (Biopharmaceuticals)

 By Region

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

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About Straits Research Pvt. Ltd.

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