As per the report by Visiongain, the Drug Discovery Outsourcing Market was valued US$9,930.9 million in 2022 and is projected to grow at a CAGR of 8.6% during the forecast period 2023-2033.
Visiongain has published a new report entitled Drug Discovery Outsourcing 2023-2033. Forecasts by Service Type (Chemistry Services, Biology Services), Workflow (Target Identification & Screening, Target Validation & Functional Informatics, Lead Identification & Candidate Optimization, Preclinical Development, Other Associated Workflow), Therapeutic Area (Oncology, Infectious Disease, Central Nervous System, Immunology, Cardiovascular Disease, Metabolic Disease, Respiratory Disease, Others), Molecule Type (Large Molecules, Small Molecules), End-users (Pharmaceutical & Biotechnology Companies, Academic Institutes, Others) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies AND COVID-19 Impact and Recovery Pattern Analysis
Strategic partnerships are also set to widen and evolve. Although CROs will work to develop new partnerships with third party players, they will also need to deepen their links with each other as well as with pharmaceutical companies. Partnerships between CROs and pharmaceutical companies will continue to reinforce in some areas, such as biosimilar growth, personalized medicine and companion diagnostics, orphan drugs, and expansion into emerging markets.
As the market continues to develop, innovate and adapt to meet the emerging needs of the pharmaceutical industry, technology will remain an important focus for CROs. When organizations try to increase patient recruitment into trials and optimize participation, for example, data management and IT practices will become increasingly relevant. There is still plenty of room for consolidation within the CRO sector, especially in the light of the increasingly competitive market environment for top and middle class CROs. A key differentiation between CROs is likely to result from the critical mass in terms of scale and global reach. More consolidation in Asian markets in particular is likely, as CROs expand their operations in emerging markets to meet the demands of their pharmaceutical company partners.
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How has COVID-19 had a Significant Impact on the Drug Discovery Outsourcing Market?
Traditional drug development is an expensive, time-consuming process with a high attrition rate. Contract research organisations (CROs) are increasingly being used as a key component of cost and risk reduction, capacity building, and data generation strategies. The pharmaceutical industry has been able to decrease internal infrastructure and research capacity thanks to the therapeutic and operational expertise of these CROs. Working with specialised CROs has accelerated the drug discovery process as well as increased success rates. Effective CROs are being used by large companies looking to diversify their dimensions and small businesses with promising molecules but limited resources. Currently, about one-third of the drug development processes worldwide are outsourced, and the data produced by the impartial third party is highly valued when regulatory submissions are made. In the upcoming years, the rising demand for healthcare, the COVID-19 pandemic or another impending health emergency, and recent developments in advanced technologies (machine learning, artificial intelligence, etc.) are likely to drive the global CRO market.
How will this Report Benefit you?
Visiongain’s 390-page report provides 134 tables and 186 charts/graphs. Our new study is suitable for anyone requiring commercial, in-depth analyses for the drug discovery outsourcing market, along with detailed segment analysis in the market. Our new study will help you evaluate the overall global and regional market for Drug Discovery Outsourcing. Get financial analysis of the overall market and different segments including service type, workflow, therapeutic area, molecule type, and end-users capture higher market share. We believe that there are strong opportunities in this fast-growing drug discovery outsourcing market. See how to use the existing and upcoming opportunities in this market to gain revenue benefits in the near future. Moreover, the report will help you to improve your strategic decision-making, allowing you to frame growth strategies, reinforce the analysis of other market players, and maximise the productivity of the company.
What are the Current Market Drivers?
Reduced Pharmaceutical and Biotech R&D Budgets
Pharmaceutical and biotech companies now look to their outsourcing partners to weigh up important strategic and implementation decisions as well. Price, time to market, and risk are leading more businesses to reduce their innovation dependency on internal R&D. It is common practice to outsource R&D and purchase the rights to goods from smaller companies. Pharmaceutical firms are gradually entering into long-term drug development alliances with other pharmaceutical firms, universities and smaller biotech companies. Price, flexibility / scalability and exposure to new / different talent pools are the main drivers for businesses outsourcing diverse R&D functions.
Emerging Markets are a Popular Destination for CROs
Drug discovery outsourcing in the pharmaceutical industry has been taking place for the last few decades. However, the global outsourcing market has grown considerably in recent years in response to the growing pressures felt by pharmaceutical companies. Outsourcing to China, India and South Korea are common practices as the CROs in these countries provide cheaper services owing to the reduced cost of labour and resources in Asia.
Increasingly, some of the large CROs provide a range of services spanning from drug discovery to clinical trials support. For pharmaceutical companies, the main advantage of outsourcing their drug discovery requirements is that they can reduce the cost of performing expensive in-house discovery research. This is particularly true when one considers the wide range of skill-sets and technologies (genomics, bioinformatics, and high-throughput screening) that go into the modern drug discovery process. By outsourcing drug discovery, the pharmaceutical industry makes considerable savings in all of these areas. In addition, putting a greater emphasis on early drug discovery outsourcing, rather than clinical research, may in the long-term reduce costs by reducing later stage failures. Development of in vitro toxicology screening assays and absorption, distribution, metabolism, and excretion (ADME) studies are areas that may benefit from this.
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Where are the Market Opportunities?
Initially, most pharmaceutical companies enter into outsourcing agreements with CROs because they want to harness the resources of the service provider. Innovator companies realize that they can achieve cost-savings and increased-efficiency by outsourcing their non-core competencies. For the most part, relationship remains a business venture. However, in some cases, pharmaceutical outsourcing can be the catalyst for establishing stronger business alliances. There have been many instances in which pharmaceutical companies have entered into such partnerships with CROs with the end-result being that the pharmaceutical company acquires the CRO. Such acquisitions are common when pharmaceutical companies feel that the expertise and services offered by the CRO are indispensable to their long-term objectives.
Competitive Landscape
The major players operating in the drug discovery outsourcing market are Aragen Life Sciences Pvt. Ltd. (GVK Biosciences), Charles River Laboratories, Curia Global, Inc., Dalton Pharma, Domainex, Eurofins, Evotec AG, Genscript, Jubilant Biosys Ltd., Laboratory Corporation of America Holdings, Pharmaron, QIAGEN N.V., Selvita, Sundia Meditech Co Ltd., Sygnature Discovery, Syngene International, Thermo Fisher Scientific Inc., and WuXi AppTec. These major players operating in this market have adopted various strategies comprising M&A, investment in R&D, collaborations, partnerships, regional business expansion, and new product launch.
Recent Developments
- On 13th March 2023, Charles River Laboratories International, Inc. launched Apollo™, an industry-leading, secure, cloud-based platform for drug developers that provides access to study data, study milestones, documents, cost estimates, and program planning tools to save time and enhance the client experience. The platform’s current capabilities are designed to support clients with safety assessment and toxicology studies.
- On 18th January 2023, Eurofins Scientific acquired assets to establish a fully-equipped, state-of-the-art laboratory campus in Genome Valley, Hyderabad. The acquisition includes a facility capable of supporting large global and Indian pharmaceutical clients as well as small biotech companies in the areas of synthetic organic chemistry, analytical R&D, bioanalytical services (for both large and small molecules), in-vivo pharmacology, safety toxicology and formulation R&D. The state-of-the-art laboratories occupy over 90,000 ft2.
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