Global Drug Discovery Outsourcing Market Based on Drug Type: (Small Molecules, Large Molecules, Biologics) Based on Workflow: (Target Identification and Screening, Target Validation and Functional Informatics, Others) Based on Therapeutic Area: (Respiratory System, Oncology, Ophthalmology, Hematology, Cardiovascular) by Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2022-2032

Drug Discovery Outsourcing Market Overview:

The global drug discovery outsourcing market is projected to reach a valuation of USD 7,146.79 Mn by 2031 at a CAGR of 7.68%, from USD 3500 Mn in 2021.

Drug discovery outsourcing is a controversial practice. Globally, biopharmaceutical companies are expanding their operations to include drug discovery outsourcing as a means of reducing costs and speeding up the process. Outsourcing has been a successful strategy for certain western pharmaceutical companies which have found it difficult to find skilled labor in the United States. Despite this, outsourcing is not without its risks – intellectual property is still under threat from external sources.

Drug discovery outsourcing is the process by which pharmaceutical companies outsource certain segments of drug discovery to outside entities. Outsourcing can be used for any phase in a traditional drug discovery pipeline but is most often associated with isolating and identifying lead compounds, experimental design, and computational modeling.

Outsourcing is now a widespread practice, extending to all phases of drug development, including early-stage research into novel targets and molecules, preclinical studies on potential drugs, and clinical trials. Drug discovery outsourcing provides an alternative method for pharmaceutical companies to collaborate with qualified professionals to develop new medicines.

A recent trend in the world of drug discovery is outsourcing. Outsourcing has become a popular option for companies looking to get their medical research done more quickly and efficiently. Experts say that companies are opting to outsource because it saves time, money, and resources. Outsourcing can also be a great way for scientists to hone their skills and learn new techniques more quickly while enabling them to make more discoveries.

Global Drug Discovery Outsourcing Market Revenue (USD Mn), 2021–2031:

To cut medication development time and expense, pharmaceutical corporations are now outsourcing research & development to private Contract Research Organizations (CROs) and university institutions. Over the last few decades, the pharmaceutical industry has observed significant changes, including patent expiration, a trend toward biologics, and the significant reduction of large pharmaceutical corporations’ internal discovery departments. The drug discovery outsourcing market has proliferated as a result of all of this. According to one estimate, 75 to 80% of research & development activities in the pharmaceutical industry can be outsourced, thereby creating opportunities for CROs, in turn boosting market growth prospects in the process.

Breaking down different stages of drug development, such as lead generation, high-speed screening, lead optimization, and hit conformation, allows organizations to specialize in their core function. Because of the low cost of manpower combined with the availability of a competent workforce and high-quality data, pharmaceutical companies are now working with manufacturing service providers in emerging nations. Increasing agility and speed, as well as pursuing innovation, cost-cutting, and gaining access to specialist technology and knowledge, are some of the main incentives that are motivating pharma businesses to increase their levels of outsourcing.

On account of the growing demand for competent resources with a mix of metabolism, computer software, and analytical chemistry knowledge, as well as the high costs of cutting-edge computation technology, lead identification services are more likely to be outsourced. Over the projected timeline, this is expected to fuel market expansion prospects. Other related services, such as upstream and downstream processes, cell line development, analytical/bioanalytical methodologies, regulatory help, formulations, and quality assurance, are elements expected to increase rapidly over the projected timeline. On the other hand, high investments in drug development research enhance the use of outsourcing services.

However, the high cost of drug discovery outsourcing, as well as the high risk of drug failure, could potentially limit this market’s revenue growth trajectory, while a scarcity of skilled specialists could pose a threat to its further expansion.

The ongoing COVID-19 pandemic is projected to have a minimal impact on the global drug discovery outsourcing market’s overall revenue growth prospects. Furthermore, during the pandemic, the outsourcing of pharmaceuticals and medications required to manage COVID-19 infections increased significantly. Pharmaceutical companies are more inclined to outsource drug discovery to domestic companies rather than to companies headquartered in other regional markets. Logistical issues, as well as trade prohibitions, could act as a stumbling block concerning supply chains.

Furthermore, since the number of COVID-19 patients has continued to rise, pharmaceutical companies are increasingly turning to drug discovery outsourcing to cater to this demand. Several firms are likely to allocate capital towards research & development activities aimed at developing an effective COVID-19 vaccine that is capable of being effective against variants as well. As this pandemic progresses, continual investments toward research, coupled with the increasing demand for medication to treat COVID-19 patients, are elements likely to further the expansion of the global drug discovery outsourcing industry.

The growing trend of partnerships or collaborations between industry players in for the purposes of drug discovery research is a major factor that is expected to augment the drug discovery outsourcing market as a whole. Furthermore, the surging prevalence of metabolic, genetic, and other chronic diseases, as well as technological advancements in drug discovery, are other factors expected to fuel this global market over the forecast period. The increasing use of AI in drug discovery, as well as the likelihood of patent expiration, biologics, and the unprecedented shrinkage of internal drug discovery facets of big pharmaceuticals, are all contributing to this market’s economic growth. Antibiotic and medication resistance is surging, thereby ensuring strong industry growth in the process.

Key Players:

This research report on the global drug discovery outsourcing market includes major company profiles such as:

• Charles River Laboratories
• Domainex
• Evotec
• GenScript
• Thermo Fisher Scientific
• Jubilant Biosys Ltd.
• Eurofins Scientific
• Aurigene Pharmaceutical Services Ltd.
• Dalton Pharma Services
• Syngene International Limited
• Others

The Global Drug Discovery Outsourcing Market Segmentation is Based on Drug Type, Workflow, Therapeutic Area, and Region:

Based on Drug Type

• Small Molecules
• Large Molecules
• Biologics

Based on Workflow

• Target Identification and Screening
• Target Validation and Functional Informatics
• Lead Identification and Candidate Optimization
• Preclinical Development
• Others

Based on Therapeutic Area

• Respiratory System
• Oncology
• Ophthalmology
• Hematology
• Cardiovascular
• Endocrine
• Gastrointestinal
• Immunomodulation
• Anti-Infective
• Central Nervous System
• Dermatology
• Genitourinary System

Based on Region

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

For the Drug Discovery Outsourcing Market research study, the following years have been considered to estimate the market size: