The drug discovery outsourcing process involves drug target identification, biological assay services, hit-to-lead and lead optimization processes in order to discover new chemical entities with therapeutic effects. Services offered under drug discovery outsourcing includes medicinal chemistry, parallel chemistry services, analytical chemistry and high-throughput screening services to identify candidate compounds for drug development.
The global Drug Discovery Outsourcing Market is estimated to be valued at Us$ 3825.2 Mn in 2023 and is expected to exhibit a CAGR Of 5.6% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing research and development expenditure in pharmaceutical and biopharmaceutical companies and the need to reduce costs associated with in-house drug discovery services is driving the growth of the drug discovery outsourcing market. As drug discovery is a highly time-consuming and capital intensive process, outsourcing portions of the process helps companies focus on their core competencies and pipelines. This allows cutting down fixed costs associated with running full-fledged in-house discovery units. Growing demand for early-stage services especially from small molecules is boosting the drug discovery outsourcing market.
Segment Analysis
The drug discovery outsourcing market is dominated by the small molecules sub segment owing to advantages such as ease of production, modification and scaling. Small molecule drugs can be easily optimized for potency, selectivity and bioavailability during the drug discovery process. Many pharmaceutical companies prefer to outsource small molecule discovery programs to contract research organizations to focus on other aspects of drug development.
Key Takeaways
The Global Drug Discovery Outsourcing Market Size is expected to witness high growth over the forecast period supported by rising R&D expenditure of pharmaceutical companies and growing need to reduce drug development costs and times.
Regional analysis:
North America dominates the global drug discovery outsourcing market currently owing to presence of many pharmaceutical companies and biotech firms in countries like the US. The region is expected to continue dominating in the coming years as well supported by advanced research infrastructure and increasing adoption of outsourcing models by players to focus on core competencies.
Key players operating in the drug discovery outsourcing market include Sigma-Aldrich Corporation (Now part of Merck KGaA), Biotain Pharma Co., Ltd., New Zealand Health Food Company Limited, XABC Biotech Co., Ltd., BIOFAC A/S, Chaitanya Biologicals Pvt. Ltd., Serolab SA, Auckland BioSciences Limited, ANZCO Foods Limited & Biocontinental Co., Ltd. These players are focusing on leveraging their expertise to provide specialized contract services for drug discovery programs.
Get more insights on this topic :
https://www.insightprobing.com/drug-discovery-outsourcing-market-driven-by-rising-rd-investment/
Check more trending articles on this topic:
