Drug Discovery Services Market
Global Drug Discovery Services Market Segmented By Process type (Profiling & lead optimization, Screening, Assay development, Cell engineering), By Service Type (Computational Chemistry, Medical chemistry, ADME &DMPK, Biochemistry), By application type (Oncology, Neurology, Metabolic & Inflammatory Disease, Immuno-Oncology), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029
Market Overview
[150 Pages Report] The Global Drug Discovery Services Market is expected to grow at a high CAGR of 11.6% during the forecast period. (2022-2029).
Drug Discovery Services Market - Strategic Insights
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Metrics |
Details |
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Market CAGR |
11.6% |
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Segments Covered |
By Process type, By Service Type, By application type and By Region |
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Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
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Fastest Growing Region |
Asia Pacific |
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Largest Market Share |
North America |
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Drug discovery is the process of designing a new drug. Drug discovery services are an efficient way of the guide, delivering a drug discovery platform in the field of biotechnology and pharmacology. Typically, a drug discovery effort addresses a biological target that has been shown to play a role in the development of the disease or starts from a molecule with interesting biological activities. In the recent past, drug discovery has evolved significantly with emerging technologies, helping the process become more refined, accurate, and less time-consuming.
Market Dynamics
The global drug discovery services market growth is driven by the increase in outsourcing of research & development and clinical trials of significant drugs by major pharmaceutical companies and availability of advanced diagnostic procedures at service providers for the discovery and development of new drugs and also increase in the prevalence of infectious diseases and deadly disease such as Ebola, avian flu, seasonal influenza, etc. are driving the drug discovery services market.
Increasing R&D expenditure and investment in the development of novel drug molecules are driving the market growth
The rising R&D expenditure of pharmaceutical and biopharmaceutical companies is prompting them to opt for fully integrated or functional outsourcing services, from the early development stage to the late-stage development phase, for drug discovery and development. As there is enormous pressure on pharma companies to contain fixed costs, outsourcing has evolved as a strategic alternative to overcome the lack of in-house resources required for new product development. According to the American Cancer Society, in 2020, about 1.8 million new cancer cases were expected to be diagnosed, and approximately 606,520 cancer deaths may have occurred in the United States. Thus, the increasing burden of a diverse range of diseases among all age groups and its burden, globally, drive the demand for drug discovery and its market.
Big pharma companies are transitioning to a leaner business model that relies heavily on outsourcing. Most pharmaceutical and biopharmaceutical companies outsource their testing functions during R&D to improve profitability, meet the timelines involved in drug development, and save costs. This is evident from the recent agreements by major pharmaceutical companies with CROs providing drug discovery and development services. Thus, increasing pharmaceutical R&D expenditure supports the growth of the drug discovery services market.
Stringent regulations governing drug discovery and animal usage will hamper the growth of the market in the forecast period
However, stringent guidelines govern the usage of animals in drug discovery. Mice, rats, fish, amphibians, and reptiles are the commonly used animals in any research. Concerns regarding the ethical use of animals in research have driven governments to introduce legislation for animal safety and use, which presents several challenges to the smooth functioning of drug discovery research. This has forced companies to implement other techniques to minimize animals. This factor will hamper the growth of the market in the forecast period.
COVID-19 Impact Analysis
Amid the COVID-19 pandemic, countries' health systems are rapidly investing in research and development to combat the virus. Potential compounds were screened from the CHEMBL, ZINC, FDA-approved drugs, and molecules under clinical trials. To expedite the R&D process, many pharmaceutical and biotechnology companies teamed up with CROs through long-term agreements, partnerships, and collaborations across the globe. For instance, in May 2021, Eurofins Scientific SE (France) launched Adaptive immune response models to understand the immune consequences of SARS-CoV-2 and other infectious diseases for drug discovery. Additionally, in July 2020, Albany Molecular Research Inc. partnered with ViralClear Pharmaceuticals to support and undertake an investigation to research the potential of merimepodib to fight SARS-CoV-2. Such strategies provided growth opportunities for large and small CROs.
Segment Analysis
The computational chemistry segment is expected to grow at the fastest CAGR during the forecast period (2022-2029)
The computational drug discovery services or CADD services involve all the stages of the pre-clinical drug discovery utilizing a wide array of technology like target identification service, HIT discovery Service, lead optimization service, and drug repurposing service. Computational chemistry describes the use of computer modeling and simulation including ab initio approaches based on quantum chemistry, and empirical approaches o study the structures and properties of molecules and materials. Computational chemistry is also used to describe the computational techniques aimed at understanding the structure and properties of molecules and materials. Growth in this market segment is largely due to the widespread application of chemistry in various early drug development phases to deliver robust candidates.
Geographical Analysis
North America region holds the largest market share of the global drug discovery services market
North America dominates the global drug discovery services market due to an increase in the prevalence of chronic diseases and high healthcare expenditure, and it is expected to remain high during the forecast period. According to the Center for Disease Control and Prevention in 2017, six in ten Americans live with at least one type of chronic disease like heart disease, cancer, stroke, and diabetes. In addition, according to the American Cancer Society, in 2020, about 1.8 million new cancer cases were expected to be diagnosed, and approximately 606,520 cancer deaths may have occurred in the United States. Thus, the increasing burden of a diverse range of diseases among all age groups and its burden, globally, drive the demand for the drug discovery services market.
Drug discovery has evolved significantly with emerging technologies, helping the process become more refined, accurate, and less time-consuming. The adoption of artificial intelligence systems in disease diagnostics and treatment design is growing, and this is expected to witness robust growth in the forecast period. For instance, in March 31, 2020, Existencia, an AI-based drug discovery company, entered a collaborative agreement with Diamond Light Source and Scripps Research for identifying COVID-19 antiviral therapies. It is anticipated to contribute to the market's growth over the forecast period.
Competitive Landscape
The drug discovery services market is a moderately competitive presence of local as well as global companies. Some of the key players which are contributing to the growth of the market include Piramal Pharma Solutions, Biopta, Charles River Laboratories International, Domainex, Evotec AG, Albany Molecular Research Inc., GenScript, Pharmaceutical Product Development, LLC (PPD), GE Healthcare, Merck, Syngene International Ltd. among others. The major players are adopting several growth strategies such as product launches, acquisitions, and collaborations, which are contributing to the growth of the drug discovery services market globally. For instance, in December 2021, Curia (US) launched a messenger RNA (mRNA) solution, which includes discovery, process development, and mRNA drug substance production, through large-scale lipid manufacturing, lipid nanoparticle (LNP) formulation, and development for full-scale sterile fill-finish services.
Piramal Pharma Solutions
Overview:
Piramal Pharma Solutions offers end-to-end services required to bring a drug into the marketplace efficiently. The company also offers services across the drug life cycle, from its discovery and development to its commercial manufacturing.
Product Portfolio:
MEDICINAL CHEMISTRY: Piramal Discovery Solutions (PDS) makes service providers for mg to kg scale discovery chemistry requirements and boasts of a broader experience in preparing high-quality small molecule NCEs. PDS is proficient in developing methodologies, including the synthesis of single, multi-step, small arrays as well as designing the focused libraries for use in hit-to-lead and lead optimization projects.
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FAQ
What is the Drug Discovery Services Market growth?
The market is growing at a CAGR of 11.6%
What is Drug Discovery Services Market size in 2021?
The Drug Discovery Services Market size was valued at USD YY million in 2021
Who are the key players in Drug Discovery Services Market?
Piramal Pharma Solutions, Biopta, Charles River Laboratories International, Domainex, Evotec AG, Albany Molecular Research Inc., GenScript.