|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
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The small molecule drug discovery market was valued at approximately USD 32,150 million in 2020, and it is expected to reach 51,160 million by 2026, registering a CAGR of nearly 8.05% during the forecast period, 2021-2026.
Amid the COVID-19 pandemic, the health systems of countries have been heavily investing in research and development to combat the virus. Research groups across the world have set about identifying small molecule 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 small molecule drug discovery market is expected to be positively impacted by the urge to find a cure for COVID-19.
The rising applications of small molecule drugs in the treatment of chronic disorders are leading to the rising demand for small molecule drugs in the market. According to the Heart Disease and Stroke Statistics 2019, around 116.4 million people, which accounts for 46% of adults in the United States, were estimated to have hypertension. As per the American Cancer Society in 2020, approximately 1.8 million new cancer cases are anticipated to be diagnosed, and around 606,520 cancer deaths may occur in the United States. The increase in chronic diseases is expected to increase the demand for treatments, resulting in the high growth of the market.
Rising technological advancements and the preference for small molecules, along with the rising disease complications, have led major players to increase their R&D expenditure, which is further acting as the major growth factor for the market.
However, high drug development costs and strict regulations for drug development are expected to limit the market growth over the forecast period.
Scope of the Report
As per the scope of the report, small molecule drug discovery represents all the costs incurred by a drug discovery company during the discovery phase (all four stages, including target identification/validation, hit generation and selection, lead identification, and lead optimization). A small molecule is a substance that can enter cells easily, as it has a low molecular weight. These are used as drugs for therapeutic purposes and include chemically synthesized drug molecules as well as all the biologically synthesized drug molecules.
The Small Molecule Drug Discovery Market is Segmented by Therapeutic Area (Oncology, Central Nervous System, Cardiovascular, Respiratory, Metabolic Disorders, Gastrointestinal, and Other Therapeutic Areas), Process/Phase (Target ID/Validation, Hit Generation and Selection, Lead Identification, and Lead Optimization), 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 for 17 different countries across major regions, globally. The report offers the value (in USD million) for the above segments.
|By Therapeutic Area|
|Central Nervous System|
|Other Therapeutic Areas|
|Hit Generation and Selection|
Key Market Trends
The Target ID/Validation Segment is Expected to hold a Significant Market Share over the Forecast Period
Target identification is done to identify the direct molecular target, such as protein or nucleic acid, of a small molecule. In the case of clinical pharmacology, target identification is aimed to find out the efficacy of the target of the drug molecule. The main objective of target validation is to identify and access the chances of a molecular target in achieving the development of pharmaceuticals for therapeutic application.
Three key distinct and complementary approaches are used for target identification and validation, which include genetic interaction methods, direct biochemical methods, and computational interference methods. In many cases, combinations of multiple approaches may be required for the full characterization of the target.
Technology plays a crucial role in every aspect of small molecule drug discovery, starting from target identification and validation to lead optimization. Hence, technological advancements have been acting as a driving factor for the industry. In February 2018, Emulate announced that it formed a strategic R&D collaboration with Takeda Pharmaceutical Company Limited to use intestine-chip for new drug target identification and validation in drug development for GI diseases. The continued focus resulted in a higher number of target identification, validation, and drug developments.
The outbreak of the novel coronavirus has drawn global attention, prompting the urgent need to find specific and broad-spectrum anti-viral drugs. A significant number of major biotech firms are in the midst of a race to investigate the Sars-Cov-2 genome and prepare therapeutics for the same. For instance, in November 2020, the 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, this is expected to further drive the segment studied over the forecast period.
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North America Expected to Dominate the Market Over the Forecast Period
North America currently dominates the overall industry for small molecule drug discovery and is anticipated to continue its stronghold over the upcoming years. The major factors driving the growth of the market include rising cases of various chronic diseases, such as cardiovascular disease, cancer, etc., and increasing approval of new small molecules in the region. According to the FDA, in 2019, the Center for Drug Evaluation and Research (CDER) approved 48 new drugs (38 new chemical entities and 10 biologics).
Furthermore, the market players are utilizing technologically advanced tools in small molecule drug discovery. For instance, in November 2019, Genesis Therapeutics announced that it raised USD 4.1 million in seed funding led by Andreessen Horowitz. This company is focusing on AI technology to optimize drug developments and discovery.
Additionally, the COVID-19 pandemic has highlighted the need for North American companies and research organizations to collaborate with the government to develop new small molecule drugs in order to meet future health crises. Several key players and universities are focusing on developing vaccines for coronavirus. For instance, GSK, Novartis, and MSD are working with the Bill & Melinda Gates Foundation and Eli Lilly partnered with AbCellera for the development of vaccines. Thus, the market is anticipated to witness robust growth over the forecast period.
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The small molecule drug discovery market is moderately competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by introducing new ingredients with fewer prices. Companies like Pfizer Inc., Bristol-Myers Squibb Company, Merck KGaA, Boehringer Ingelheim GmbH, and GlaxoSmithKline hold a substantial share in the market.
- In November 2020, Genesis Therapeutics collaborated with Genentech for AI-driven, multi-target drug discovery. The partnership leverages Genesis’ graph machine learning and drug discovery expertise to rectify 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 rectify and optimize novel lead structures for potential drug candidates in treating cardiovascular and oncological diseases.
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 Rise in Demand for Small Molecule Drugs
4.2.2 Increasing Number of Contract Organizations for R&D
4.2.3 Small Molecules in Treatment of Chronic Diseases
4.3 Market Restraints
4.3.1 High Drug Development Costs
4.3.2 Strict 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 By Therapeutic Area
5.1.2 Central Nervous System
5.1.5 Metabolic Disorders
5.1.7 Other Therapeutic Areas
5.2 By Process/Phase
5.2.1 Target ID/Validation
5.2.2 Hit Generation and Selection
5.2.3 Lead Identification
5.2.4 Lead Optimization
5.3.1 North America
126.96.36.199 United States
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
220.127.116.11 South Korea
18.104.22.168 Rest of Asia-Pacific
5.3.4 Middle East and Africa
22.214.171.124 South Africa
126.96.36.199 Rest of Middle East and Africa
5.3.5 South America
188.8.131.52 Rest of South America
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Company Profiles
6.1.1 21st Century Therapeutics Inc.
6.1.2 4SC-Discovery (4SC)
6.1.3 Acacia Pharma Gr
6.1.4 Agilent Technologies Inc.
6.1.6 Boehringer Ingelheim GmbH
6.1.7 Bristol-Myers Squibb Company
6.1.8 Gilead Sciences Inc.
6.1.9 GlaxoSmithKline PLC
6.1.10 Johnson & Johnson
6.1.11 Merck KGaA
6.1.13 Pfizer Inc.
6.1.14 Takeda Pharmaceutical Industries Ltd
6.1.15 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 Small Molecule Drug Discovery Market market is studied from 2018 - 2026.
What is the growth rate of Global Small Molecule Drug Discovery Market?
The Global Small Molecule Drug Discovery Market is growing at a CAGR of 8.05% over the next 5 years.
What is Global Small Molecule Drug Discovery Market size in 2018?
The Global Small Molecule Drug Discovery Market is valued at 32150 Million USD in 2018.
What is Global Small Molecule Drug Discovery Market size in 2026?
The Global Small Molecule Drug Discovery Market is valued at 51160 Million USD in 2026.
Which region has highest growth rate in Global Small Molecule Drug Discovery Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Global Small Molecule Drug Discovery Market?
North America holds highest share in 2020.
Who are the key players in Global Small Molecule Drug Discovery Market?
Pfizer Inc., Bristol-Myers Squibb Company, Merck KGaA, Boehringer Ingelheim International GmbH, GlaxoSmithKline PLC are the major companies operating in Global Small Molecule Drug Discovery Market.