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The drug discovery market is expected to register a CAGR of nearly 8.3% during the forecast period, with a revenue of approximately USD 53,855 million in 2020, and it is expected to reach 85,785 million by 2026.
Amid the COVID-19 pandemic, the health system of countries is rapidly investing in research and development to combat the virus. Potential compounds were screened from the CHEMBL database, ZINC database, FDA approved drugs, and molecules under clinical trials. Research groups across the world are identifying drugs for the treatment of COVID-19, by screening both novel and existing drugs for their ability to alleviate symptoms and stem viral replication. Thus, in view of the ongoing pandemic, the drug discovery market is expected to be positively impacted by the urge to find a cure for COVID-19.
The propelling factors for the growth of the drug discovery market include the rising burden of a wide range of diseases (such as cardiovascular and CNS-related disorders), rising healthcare expenditure, and upcoming patent expiration of blockbuster drugs.
Cardiovascular diseases, infectious diseases, diabetes, and kidney-related complications have high burden, globally. For instance, according to the estimates of the Heart Disease and Stroke Statistics 2019, approximately 116.4 million, or 46% of adults in the United States were estimated to have hypertension.
Also, according to the American Cancer Society, in 2020, about 1.8 million new cancer cases are expected to be diagnosed, and approximately 606,520 cancer deaths may occur 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.
There has been an upsurge in the usage of advanced technologies, such as high throughput, bioinformatics, and combinatorial chemistry for better drug candidate identification. Drug discovery has evolved significantly with emerging technologies, helping the process to become more refined, accurate, and less time consuming. The adoption of artificial intelligence systems in disease diagnostics and treatment design started growing, and this is expected to witness robust growth in the coming years. For instance, on 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 growth of the market over the forecast period.
The gradual rise in the healthcare expenditure regionally helps the new pharmaceutical technology advancement. Although with high expenditure, there is a need for redirecting the resources.
Scope of the Report
As per the scope of the report, drug discovery is a process, which aims at identifying a compound therapeutically useful in treating and curing diseases. 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 to become more refined, accurate, and less time-consuming. The drug discovery market is segmented by drug type (small molecule drugs and biologic drugs), technology (high throughput screening, pharmacogenomics, combinatorial chemistry, nanotechnology, and other technologies), end user (pharmaceutical companies, contract research organizations (CROs), and other end users), and geography (North America, Europe, Asia-Pacific, Middle-East and Africa, and South America). The market report also covers the estimated market sizes and trends of 17 different countries across major regions, globally. The report offers the value (in USD million) for the above segments.
|Small Molecule Drugs|
|High Throughput Screening|
|Contract Research Organizations (CROs)|
|Other End Users|
Key Market Trends
Biologics Drug is the Segment that is Expected to Grow Fastest Under Drug Type
Biologics and drugs offer several benefits, such as highly effective and potent action, fewer side effects, and the potential to actually cure the diseases rather than merely treat the symptoms, which significantly increased the demand for these products.
The efficacy and safety of biopharmaceuticals have led to their rapid adoption by people, driving the global drug discovery market. As per the report of Pharmaceutical Research and Manufacturers of America 2019, biopharmaceutical products have shown positive results for some of the chronic and rare diseases, which led to its sharp rise in the demand.
As per the study of Journal of Family Medicine and Primary care 2020, about 12 out of 46 drugs were anticancer agents in 2017, and in 2018, about 23 out of 55 were anticancer drugs.
As per the same study, the number of New Drug Applications (NDAs)/Biologic License Applications (BLA’s) registered per year has seen a significant increase over the past decade. In 2017, around 46 agents were approved, while in 2018, around 59 novel agents were approved. Therefore, it is expected to further drive the market studied over the forecast period.
In the pandemic, the rising adoption of biologics due to the certain advantages associated with them, especially target specificity, is boding well for the market studied. A significant number of major biotech firms are in the middle of a race to investigate the Sars-Cov-2 genome and prepare therapeutics for the same. For instance, in November 2020, South Korean pharma company Samsung Biologics entered a long-term agreement with Eli Lilly and Company to manufacture its investigational COVID-19 virus-neutralizing antibody, bamlanivimab.Therefore, it is expected to further drive the market studied over the forecast period.
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North America is Expected to Hold the Largest Market Share Over the Forecast Period
North America leads the world in terms of R&D spending on pharmaceuticals. It is also the largest market for bulk drugs and finished dosage formulations. The market operates as a free economy, which is designed to implement transparent trade practices and restrict anti-competitive practices.
A major push for generic drugs and biosimilars is expected to boost the demand for specialty and complex ingredients, over the forecast period. For instance, in 2019, Biocon and Mylan jointly launched a cancer drug called Ogivri, a biosimilar to Herceptin, in the United States. Herceptin is a biologic therapeutic used for the treatment of all types of breast cancers and metastatic stomach cancers (gastric or gastroesophageal junction adenocarcinoma).
Also, in November 2019, Genesis Therapeutics announced that it raised USD 4.1 million in seed funding led by Andreessen Horowitz. This company is harnessing breakthrough AI-technology to optimize drug discovery and development.
Furthermore, the country has great opportunities for biosimilars, as biologics carry higher price. By 2020, the US market is estimated to become one of the major competitors of biosimilars. The key products in the US market are Remicade, Enbrel, Rituximab, Adalimumab, Infliximab, Etanercept, Darbepoetin Alpha, etc. Hence, owing to the aforementioned factors, the market is estimated to witness a high growth over the forecast period.
The COVID-19 pandemic highlighted the need for North American companies and research organizations to collaborate with the government to develop new drugs, in order to meet future health crises. Several universities and key players are focusing on developing vaccines for coronavirus. For instance, Eli Lilly partnered with AbCellera for the development of vaccines. Thus, this is expected to further boost the market studied over the forecast period.
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The market studied has various pharmaceutical companies that are investing billions of dollars in artificial intelligence (AI), in order to make the drug discovery process significantly faster and cost-efficient. The pharmaceutical and biotech companies are increasing their collaborations with contract development and manufacturing organizations.
- In November 2020, Genesis Therapeutics entered AI-driven, multi-target drug discovery partnership with Genentech. The collaboration leverages Genesis’ graph machine learning and drug discovery expertise to identify innovative drug candidates for therapeutic targets in multiple disease areas.
- In January 2020, Bayer entered a collaboration agreement with artificial intelligence drug discovery company Exscientia, to identify and optimize novel lead structures for potential drug candidates in treating cardiovascular and oncological diseases.
Table of Contents
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Burden of Various Chronic Diseases
4.2.2 Increasing Research and Development Expenditure and Investment for Development of Novel Drug Molecules
4.3 Market Restraints
4.3.1 Huge Capital Investment with Low Profit Margins
4.3.2 Stringent Government Regulations
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Drug Type
5.1.1 Small Molecule Drugs
5.1.2 Biologic Drugs
5.2.1 High Throughput Screening
5.2.3 Combinatorial Chemistry
5.2.5 Other Technologies
5.3 End User
5.3.1 Pharmaceutical Companies
5.3.2 Contract Research Organizations (CROs)
5.3.3 Other End Users
5.4.1 North America
22.214.171.124 United States (By Drug Type, By Technology, and By End User)
126.96.36.199 Canada (By Drug Type, By Technology, and By End User)
188.8.131.52 Mexico (By Drug Type, By Technology, and By End User)
184.108.40.206 United Kingdom (By Drug Type, By Technology, and By End User)
220.127.116.11 Germany (By Drug Type, By Technology, and By End User)
18.104.22.168 France (By Drug Type, By Technology, and By End User)
22.214.171.124 Italy (By Drug Type, By Technology, and By End User)
126.96.36.199 Spain (By Drug Type, By Technology, and By End User)
188.8.131.52 Rest of Europe (By Drug Type, By Technology, and By End User)
184.108.40.206 China (By Drug Type, By Technology, and By End User)
220.127.116.11 Japan (By Drug Type, By Technology, and By End User)
18.104.22.168 India (By Drug Type, By Technology, and By End User)
22.214.171.124 Australia (By Drug Type, By Technology, and By End User)
126.96.36.199 South Korea (By Drug Type, By Technology, and By End User)
188.8.131.52 Rest of Asia-Pacific (By Drug Type, By Technology, and By End User)
5.4.4 Middle-East and Africa
184.108.40.206 GCC (By Drug Type, By Technology, and By End User)
220.127.116.11 South Africa (By Drug Type, By Technology, and By End User)
18.104.22.168 Rest of Middle-East and Africa (By Drug Type, By Technology, and By End User)
5.4.5 South America
22.214.171.124 Brazil (By Drug Type, By Technology, and By End User)
126.96.36.199 Argentina (By Drug Type, By Technology, and By End User)
188.8.131.52 Rest of South America (By Drug Type, By Technology, and By End User)
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Company Profiles
6.1.1 Genome Biologics
6.1.2 Abbott Laboratories Inc.
6.1.3 Agilent Technologies Inc.
6.1.4 AstraZeneca PLC
6.1.5 AVIVA Biosciences
6.1.6 Bayer AG
6.1.7 Biotica Pharma
6.1.8 Bristol-Myers Squibb Company
6.1.9 Collaborative Drug Discovery Inc.
6.1.10 DeepBiome Therapeutics
6.1.11 Eli Lilly and Company
6.1.12 F. Hoffmann-La Roche Ltd
6.1.13 Gilead Sciences Inc.
6.1.14 GlaxoSmithKline PLC
6.1.15 Merck & Co. Inc.
6.1.17 Pfizer Inc.
6.1.18 Shimadzu Corp.
6.1.19 Takeda Pharmaceuticals
6.1.20 Teva Pharmaceuticals
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Global Drug Discovery Market market is studied from 2018 - 2026.
What is the growth rate of Global Drug Discovery Market?
The Global Drug Discovery Market is growing at a CAGR of 8.3% over the next 5 years.
Which region has highest growth rate in Global Drug Discovery Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Global Drug Discovery Market?
North America holds highest share in 2020.
Who are the key players in Global Drug Discovery Market?
- Pfizer Inc.
- GlaxoSmithKline PLC
- Merck & Co. Inc.
- Agilent Technologies Inc.
- Eli Lilly and Company
Are the major companies operating in Global Drug Discovery Market.