Global Drug Discovery Outsourcing Market Drivers:
Rise in focus on drug development to propel market growth
One of the key factors expected to propel growth of the global drug discovery outsourcing market over the forecast period is the rise in focus on drug development across the globe. With the rising burden of chronic or life-threatening disease, the demand for safe/effective drugs is also increasing rapidly, which in turn increase the drug development. In May 2023, Google Cloud announced the launch of the two new Artificial Intelligence (AI) powered tools that will help pharma and biotech companies accelerate drug discovery. The suite is designed to help pharma and biotech companies predict and understand the structure of proteins, a vital part of drug development.
Rise in adoption of outsourcing services to boost market growth
Another factor which is driving the growth of the global drug discovery outsourcing market is the rise in adoption of outsourcing services around the world. For instance, in October 2022, Amphista Therapeutics, a biotech company focusing on drug discovery that use targeted protein degradation (TPD), collaborated with Domainex, a medicines research service partner, as a partner to provide integrated drug discovery services for its research programs. Domainex has experience in the field of TPD with expertise in designing, synthesising, and profiling targeted heterobifunctional protein degraders. This in turn is expected to drive market growth.
Global Drug Discovery Outsourcing Market Opportunities:
Rising trend of outsourcing is expected to offer significant growth opportunities for players in the global drug discovery outsourcing market. For instance, drug discovery outsourcing increases the success rate and speed of the drug discovery process. According to article published in December 2022 in the Indian Journal of Pharmacology, outsourcing drug development services has become an important strategy for cost and risk reduction, capacity building, and data generation. Around one-third of the drug development processes are outsourced, and the data generated by independent third parties are well appreciated during regulatory submissions.
Rise in burden of cancer across the globe is expected to offer significant growth opportunities for players in the global drug discovery outsourcing market. For instance, with the rising incidence of cancer, the demand for safe and effective drugs is also increasing rapidly. In October 2022, Merck and Moderna signed n US$ 250 million agreement to develop and commercialize a cancer vaccine, mRNA-4157/V940. A vaccine is currently being evaluated in Phase II clinical trial in combination with pembrolizumab, Merck’s anti-programmed cell death protein 1 (PD-1), as adjuvant treatment for patients with high-risk melanoma.
Global Drug Discovery Outsourcing Market Restraints:
High cost of drug development to hinder market growth
One of the key factors expected to hamper growth of the global drug discovery outsourcing market is the high cost of drug development. Drug development is an expensive, time consuming, and a long-term process. Higher costs associated with preclinical studies for drug discovery is the biggest challenge. Companies spend huge on research and development to identify the target and then bind that target to compounds of interests. Many drugs fail in early stage as well as in late stage clinical trials, and pharmaceutical companies spend millions on drug development.
Stringent rule and regulations to hamper market growth
Another factor which is hampering the growth of the global drug discovery outsourcing market is the stringent rule & regulations for drug manufacturing. Drugs compounded by outsourcing facility are subject to current good manufacturing practice (CGMP) requirements. Drugs compounded by the outsourcing facility can qualify for exemptions from the Food and Drug Administration (FDA) approval requirements and the requirement to label products with adequate directions for use, but not from current good manufacturing practice (CGMP) requirements.
Drug Discovery Outsourcing Market Report Snapshots
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