by The global Drug Discovery Outsourcing Market is estimated to be valued at US$ 3,825.2 Mn in 2023 and is expected to exhibit a CAGR of 6.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Drug discovery outsourcing refers to the process of hiring an outside company to conduct research and development activities related to drug discovery on behalf of the sponsoring pharmaceutical company. This helps pharmaceutical companies to focus on core operations while drug discovery specialists bring opportunities for cost savings through economies of scale and efficiencies. The drug discovery outsourcing process involves target identification and validation, hit generation, lead optimization and candidate selection. Key advantages of outsourcing drug discovery include access to specialized skills and infrastructure, risk mitigation, financial benefits and regional/global expansion opportunities.
Market key trends:
One of the key trends in the drug discovery outsourcing market is growing adoption of artificial intelligence and machine learning technologies. Pharmaceutical companies are collaborating with AI and ML technology providers to leverage these advanced tools in critical areas of drug discovery such as target identification and validation, lead optimization, toxicology prediction, and clinical trial designing. For instance, services such as Anthropic help discover novel drug targets by training AI models on vast scientific literature and clinical trial datasets. Adoption of AI and ML is expected to significantly accelerate the drug discovery process and increase success rates going forward.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as setting up outsourcing facilities requires large investments and technologies. However, some new players are entering this space by offering niche services.
Bargaining power of buyers: The bargaining power of buyers is high due to availability of many players offering such outsourcing services. Buyers can negotiate on price and quality of services.
Bargaining power of suppliers: Pharmaceutical companies and research institutes have moderate bargaining power as suppliers in this market since outsourcing companies require their expertise and facilities.
Threat of new substitutes: There exists a low threat from alternatives as drug discovery is highly regulated process requiring dedicated facilities and expertise which cannot be substituted.
Competitive rivalry: The competitive rivalry is high among existing drug discovery outsourcing service providers due to many players offering similar range of services globally.
Key Takeaways
The Global Drug Discovery Outsourcing Market Size is expected to witness high growth, exhibiting CAGR of 6.4% over the forecast period, due to increasing pressure on pharmaceutical companies to reduce costs and improve efficiency.
Regional analysis: North America dominated the market and is expected to retain its dominance over the forecast period, attributed to presence of large pharmaceutical companies outsourcing research activities from this region. Asia Pacific is expected fastest growing market owing to availability of skilled workforce and increasing investments by outsourcing companies in this region.
Key players: Key players operating in the Drug Discovery Outsourcing market include Curia, Genscript, Evotec, Eurofins Scientific, Laboratory Corporation of America Holdings, among others. Curia provides end-to-end drug discovery outsourcing services while Genscript offers DNA services for gene synthesis, gene array manufacturing etc. Eurofins provides advanced services like ligand binding assays, ADME toxicology testing.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
