|Fastest Growing Market:||Asia-Pacific|
|Largest Market:||North America|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The Drug Discovery Outsourcing market studied is expected to grow with an estimated CAGR of 7.5%, over the forecast period.
COVID-19 has become a major public health problem. This emergency has brought pharmaceutical companies to centre-stage and public attention. The covid-19 pandemic has demonstrated the value of drug discovery and development. Drug discovery outsourcing has become a key aspect to develop effective treatments against the virus. In July 2021, Exscientia has demonstrated proof-of-concept by using its AI platform to design a novel class of inhibitors targeting the SARS-CoV-2’s main protease enzyme, Mpro, also known as 3CLpro, the causative agent of COVID-19. Exscientia has built a track record of improving and accelerating drug discovery by advancing the first three completely AI-designed small molecule drug candidates into clinical trials. Exscientia has entered into collaborations with major pharmaceutical companies including Bristol Myers Squibb, Bayer, Sanofi and Dainippon Sumitomo, as well as multiple biotech companies. Thus the global market of Drug Discovery Outsourcing will be greatly impacted by Covid-19 as the future of many drugs under develomnet depends on the results of various trials that are ongoing. This is expected to boost the growth of drug discovery outsourcing market.
Drug dicovery is a lengthy and costly process. These reasons have forced pharmaceutical and biotech companies to opt for outsourcing these research activities, thus speeding-up the drug discovery process and bringIng down the cost for developmnet. Many academic and private Contract Research Organizations (CROs) are activly engaged with top pharmaceutical companies to help them in developing the desired drug. Rising cases of chronic diseases have compelled companies to develop better medicines. In areas such as Oncology, Neurology, Rare disease and Infcetious disease, companies are activley looking for options of outsourcing. In 2020, AstraZeneca colloborated with nine of the world’s foremost oncology medical centers to expedit its research in some of the hardest-to-treat cancers. The company will be funding clinical and non-clinical research to accelerate clinical trial design and precision medicine strategies. Based on such recent development, the studied market is expected to witness a significant growth over the forecast period.
However, discovery and development of new drug require huge investmnet of capital and time. Failure rate in clinical stage is major concern while developmnet of new drugs. According to Alex Berezow (2020), the overall probability of success for all drugs and vaccines is 13.8%. While oncology drugs have success rate of just 3.4 %, vaccines for infectious diseases have a 33.4% success rate. This is expected to negatively impact the Drug Discovery Outsourcing market revenue.
Scope of the Report
As per the scope of the report, Drug Discovery Outsourcing refer to a process that establishes a working agreement between two companies in which one company produces the desired drug on behalf of their client. In some cases, the contract manufacturer also handles the ordering and shipment processes for the client. The Drug Discovery Outsourcing Market is Segmented by Type (Medical Chemistry Service, Biology Service), By Drug Type (Small Molecule, Large Molecules (Biopharmaceuticals)), By Therapeutic Area (Oncology, Infectious Disease, Respiratory Disease, Cardiovascular, Gastrointestinal, Others) and Geography (North America, Europe, Asia-Pacific, Middle East and Africa, and South America). The report offers the value (in USD million) for the above segments.
|Medical Chemistry Service|
|By Drug Type|
|Large Molecules (Biopharmaceuticals)|
|By Therapeutic Area|
Key Market Trends
The Respiratory Disease Segment Is Expected To Grow Faster And Dominate The Market Over The Forecast Period
By therapeutic area, the Respiratory Disease segment is anticipated to hold the major share over the forecast period. According to data from Word Health Organizations (2021), Chronic obstructive pulmonary disease (COPD) is the third leading cause of death worldwide, causing 3.23 million deaths in 2019. Also according to the same source, an estimated 65 million people have moderate to severe chronic obstructive pulmonary disease (COPD), and the numbers are on the rise due to an increase in exposure to tobacco smoke, indoor air pollution, and occupational dust, fumes, and chemicals. Whereas, about 262 million people suffer from asthma, which is the most common chronic disease of childhood, affecting 14% of children globally. The prevalence of asthma in children is also on the rise.
Several companies are proactively involved in developing an effective treatment for respiratory disease. For instance, in July 2021, AIM ImmunoTech Inc. announced that it has signed a contract with Open Orphan plc to sponsor a Phase 2a Human Challenge Trial (HCT) to test the company’s drug Ampligen as a potential intranasal antiviral therapy. Ampligen is being developed as potential prophylaxis against future viral variants and future novel respiratory viruses for which there are no current therapies, as well as known viruses such as SARS-CoV-2, which causes COVID-19. On the basis of the above mentioned facts, it is expected that the Drug Discovery Outsourcing segment will grow over the forecast period.
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North America Dominates the Market and Expected to do Same in the Forecast Period
North America holds the major market share in the Drug Discovery Outsourcing market and is expected to dominate the overall market throughout the forecast period. Various factors will influence the rapid growth in the region including factors such as higher adoption of technological advancements, established research facilities, high investment in the R&D for drug discovery. The advantages of outsourcing such as fast product development and expertise acquisition will out shadow the cost involved in the procedure. Outsourcing can increase success rates and accelerate drug discovery and development, potentially leading to higher profits. Recently in June 2021, Curia Inc, formerly AMRI, announced that it has entered into a definitive agreement to acquire LakePharma Inc., a privately held biologics drug discovery, clinical research, development and manufacturing organization with operations in California, Massachusetts, and Texas. The combined company will provide expertise in both large and small molecules from drug discovery through drug substance manufacturing.
Additionally, the burden of respiratory disease is also very high in the region. According to Centers for Disease Control and Prevention, COPD was the fourth leading cause of death in the United States in 2018 and almost 15.7 million Americans (6.4%) reported that they have been diagnosed with COPD. Moreover, the annual health care expenditures for asthma alone is around USD 20.7 billion according to a 2020 report by the Office of Disease Prevention and Health Promotion (ODPHP). Thus, the requirement to develop a safe and effective treatment is further on rise, and collaborations with Contract Research Organizations (CROs) will make the process accelerate quickly. In view of these above-mentioned factors the Drug Discovery Outsourcing market is expected to get a boost in the region.
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The Drug Discovery Outsourcing market is highly competitive with several players across the globe. In terms of market share, few of the major players currently dominate the market. With the increase in research and development activity, many regional players are expected to contribute to the Drug Discovery Outsourcing market over the forecast period. Some of the major players of the market are Charles River Laboratories International, Inc., GenScript Biotech Corporation, Curia Inc., Dalton Pharma Services, Evotec SE, PPD, Inc., Oncodesign, Jubilant Life Sciences Limited, Eurofins Scientific, WuXi AppTec, Laboratory Corporation of America Holdings, and others.
In April 2021, Charles River Laboratories International, Inc. and Valence Discovery announced the formation of a strategic partnership to provide clients access to Valence’s artificial intelligence platform for molecular property prediction, generative chemistry, and to accelerate preclinical drug discovery efforts.
In June of 2021, GenScript Biotech Corporation announced that they have entered into a strategic licensing agreement for Ligand's OmniAb Platform, a multi-species antibody discovery platform, to generate highly diversified, fully human antibodies that are optimized in vivo for immunogenicity, manufacturability and efficacy.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing R&D In Biopharmaceutical Industry
4.2.2 Increasing demand for outsourcing Services in Drug Development
4.3 Market Restraints
4.3.1 High Cost of Drug Development
4.3.2 Strict Regulations
4.4 Porter's Five Force 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 By Type
5.1.1 Medical Chemistry Service
5.1.2 Biology Service
5.2 By Drug Type
5.2.1 Small Molecule
5.2.2 Large Molecules (Biopharmaceuticals)
5.3 By Therapeutic Area
5.3.2 Infectious Disease
5.3.3 Respiratory Disease
5.4.1 North America
22.214.171.124 United States
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
184.108.40.206 South Korea
220.127.116.11 Rest of Asia-Pacific
5.4.4 Middle East and Africa
18.104.22.168 South Africa
22.214.171.124 Rest of Middle East and Africa
5.4.5 South America
126.96.36.199 Rest of South America
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Company Profiles
6.1.1 Charles River Laboratories International, Inc.,
6.1.2 GenScript Biotech Corporation
6.1.3 Curia Inc.
6.1.4 Dalton Pharma Services
6.1.5 Evotec SE
6.1.6 PPD, Inc.
6.1.8 Jubilant Life Sciences Limited
6.1.9 Eurofins Scientific
6.1.10 WuXi AppTec
6.1.11 Laboratory Corporation of America Holdings
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 Outsourcing Market market is studied from 2018 - 2026.
What is the growth rate of Global Drug Discovery Outsourcing Market?
The Global Drug Discovery Outsourcing Market is growing at a CAGR of 7.5% over the next 5 years.
Which region has highest growth rate in Global Drug Discovery Outsourcing Market?
Asia-Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Global Drug Discovery Outsourcing Market?
North America holds highest share in 2020.
Who are the key players in Global Drug Discovery Outsourcing Market?
Charles River Laboratories International, Inc., , GenScript Biotech Corporation, Dalton Pharma Services , Evotec SE , Curia Inc. are the major companies operating in Global Drug Discovery Outsourcing Market.