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The global small molecule drug discovery market is expected to register a CAGR of nearly 8.05% during the forecast period, with a revenue of approximately USD 32,150 million in 2020 and expected to reach 51,160 million by 2026.
Amid the COVID-19 pandemic, the health system of countries is 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 curb on 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, there were around 116.4 million that account 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 might occur in the United States. The incresae in chronic diseases is expected to increase the demand for treatment resulting in high growth of the market.
Rising technological advancements and the preference of small molecules along with the rising disease complications, has led major players to increase their R&D expenditure, which is further acting as the major growth factors for the global small molecule drug discovery market.
However, high drug development cost and strict regulation for drug devlopment is expected to limit the market growth over 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 includes chemically synthesized drug molecule 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, orthopedics, anti-infective, dermatology, immunology, other therapeutic areas), process/phase (target id/validation, hit generation and selection, lead identification, 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
Target Identification and Validation is Expected to hold its Significant Market Share in the Process/Phase Segment And Expected To Continue To Do The Same Over 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 development.
The outbreak of novel coronavirus has drawn global attention, prompting the urgent need to find specific and broad-spectrum antiviral 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, South Korean pharma company Samsung Biologics had 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 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 for 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) in 2019.
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 & MSD 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 the substantial share in the market.
- In November 2020, Genesis Therapeutics had 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 into 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 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 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 Cost
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
5.1.11 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
188.8.131.52 United States (By Therapeutic Area and By By Process/Phase)
184.108.40.206 Canada (By Therapeutic Area and By By Process/Phase)
220.127.116.11 Mexico (By Therapeutic Area and By By Process/Phase)
18.104.22.168 Germany (By Therapeutic Area and By By Process/Phase)
22.214.171.124 United Kingdom (By Therapeutic Area and By By Process/Phase)
126.96.36.199 France (By Therapeutic Area and By By Process/Phase)
188.8.131.52 Italy (By Therapeutic Area and By By Process/Phase)
184.108.40.206 Spain (By Therapeutic Area and By By Process/Phase)
220.127.116.11 Rest of Europe (By Therapeutic Area and By By Process/Phase)
18.104.22.168 China (By Therapeutic Area and By By Process/Phase)
22.214.171.124 Japan (By Therapeutic Area and By By Process/Phase)
126.96.36.199 India (By Therapeutic Area and By By Process/Phase)
188.8.131.52 Australia (By Therapeutic Area and By By Process/Phase)
184.108.40.206 South Korea (By Therapeutic Area and By By Process/Phase)
220.127.116.11 Rest of Asia-Pacific (By Therapeutic Area and By By Process/Phase)
5.3.4 Middle East and Africa
18.104.22.168 GCC (By Therapeutic Area and By By Process/Phase)
22.214.171.124 South Africa (By Therapeutic Area and By By Process/Phase)
126.96.36.199 Rest of Middle East and Africa (By Therapeutic Area and By By Process/Phase)
5.3.5 South America
188.8.131.52 Brazil (By Therapeutic Area and By By Process/Phase)
184.108.40.206 Argentina (By Therapeutic Area and By By Process/Phase)
220.127.116.11 Rest of South America (By Therapeutic Area and By By Process/Phase)
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 Accent Therapeutics
6.1.5 Agilent Technologies Inc.
6.1.7 AVIVA Biosciences
6.1.8 Boehringer Ingelheim GmbH
6.1.9 Bristol-Myers Squibb Company
6.1.10 Collaborative Drug Discovery Inc.
6.1.11 Gilead Sciences Inc.
6.1.12 GlaxoSmithKline PLC
6.1.13 Johnson & Johnson
6.1.14 Merck KGaA
6.1.16 Pfizer Inc.
6.1.17 Takeda Pharmaceutical Industries Ltd
6.1.18 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.