The global Drug Discovery Outsourcing Market size is expected to reach USD 5.4 billion by 2028 registering a CAGR of 7.4% over the forecast period, according to a new report by Grand View Research, Inc. Drug discovery is a costly and lengthy process. This has forced pharmaceutical and biotech companies to opt for outsourcing their research activities to academic and private Contract Research Organizations (CROs). Thus, factors such as high R&D costs, patent expiration of best-selling drugs, and the need to speed up the drug discovery process, are expected to boost the demand for outsourcing of drug discovery in the coming years.
Rising cases of chronic diseases have compelled companies to develop better medicines. Some of the key therapeutic areas where companies are actively involved in outsourcing include oncology, cardiovascular, and anti-infectives. In 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 within this network. The COVID-19 pandemic has brought pharmaceutical companies in limelight. It is demonstrating the value of drug discovery and development.
Several companies are proactively involved in developing an effective vaccine to treat the disease. Pfizer Inc. and BioNTech SE received the first approval for the vaccine following a worldwide Phase 3 trial of a potential strain to combat the virus. As for clinical trials, many of them are halted, while some are functional by adopting remote monitoring technologies. Thus, the pandemic has brought the pharmaceutical industry to center-stage, with drug discovery outsourcing becoming a key aspect to develop effective treatments against the virus. This is expected to boost the market revenue for the next 2 years i.e. a short-term boom, after which it shall regain its original growth curve.
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Drug Discovery Outsourcing Market Report Highlights
- Lead identification & candidate optimization was the dominant workflow segment of the global market in 2020
- The segment will retain its leading position throughout the forecast period as lead identification & candidate optimization is one of the critical processes in drug discovery
- The oncology therapeutics area segment is projected to register the fastest CAGR from 2021 to 2028
- The small molecules drug type segment led the market in 2020 and is also projected to record the fastest growth rate during the forecast period. This, however, may change in the short term with a higher emphasis on biologics
- In terms of revenue share, North America is estimated to be the leading regional market during the forecast period
- However, Asia Pacific is projected to be the fastest-growing regional market from 2021 to 2028 owing to government initiatives to forge alliances with the U.S. pharmaceutical companies