Small Molecule Drug Discovery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021-2026)

Market Overview

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.

Report scope can be customized per your requirements. Click here.

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.

To understand key trends, Download Sample Report