Global small molecule drug discovery market is estimated to witness steady growth, owing to rising R&D investments and increasing prevalence of chronic diseases
Global small molecule drug discovery market is estimated to be valued at USD 56.10 Bn in 2024, exhibiting a CAGR of 8.6% over the forecast period of (2024-2031). Furthermore Rising collaborations between pharmaceutical companies and research institutions for novel drug development can drive the market growth in the near future.
Market Dynamics:
Global small molecule drug discovery market growth is primarily driven by rising R&D investments by biopharmaceutical companies coupled with increasing prevalence of various chronic diseases across the globe. For instance, according to the analysis of Global Burden of Disease, mortality associated with chronic diseases is likely to increase by 57% between 2010 and 2020. Small molecules have advantages over biologics in terms of better stability, manufacturing feasibility, and cost-effectiveness. Discovery of small molecules helps pharmaceutical companies to cater to a larger population base due to affordable prices compared to biologic drugs.
Increasing prevalence of chronic diseases can drive the market growth
Rising prevalence of chronic diseases such as cancer, diabetes, cardiovascular diseases, and others can drive the growth of global small molecule drug discovery market. According to the World Health Organization (WHO), chronic diseases are estimated to account for about 60% of all deaths globally. The advancement in genomics and proteomics has increased the understanding of disease mechanisms at the molecular level that enable researchers to identify new targets and develop small molecule drugs to effectively treat chronic conditions. This increasing focus on developing small molecule therapeutics can boost demand in the near future.
Growing biopharmaceutical industry investments into R&D
The biopharmaceutical industry is under constant pressure to develop innovative medicines and bring them to market before patents expire on existing drugs. To maintain a sustainable pipeline of new drugs, companies are investing heavily in R&D, particularly in early-stage small molecule drug discovery. For instance, according to a report published by Evaluate Pharma, global R&D spending by pharma companies increased to US$ 190 billion in 2021, a 4.4% increase from 2020 levels. This increased funding environment is encouraging more research related to target identification, hit generation and lead optimization.
High cost of drug development
Drug development is an extremely costly process requiring massive investments. It is estimated that developing a new medicine and bringing it to market costs between US$ 1-US$ 3 billion. The high financial burden along with high failure rates especially during clinical trials discourages investments in late stage clinical development of small molecules. According to industry experts, over 90% of drug candidates fail during clinical evaluation itself due to lack of efficacy or safety issues.
Stringent regulatory guidelines
Drug development and approval is a highly regulated process with different regulatory bodies setting specific criteria and guidelines that need to be followed. Non-compliance can result in rejection, delays or withdrawal of approval. For example, the FDA requires extensive documentation of clinical data from multiple phases of trials to ensure drug safety and efficacy before granting approval. European Medicines Agency (EMA) has detailed guidelines on good manufacturing practices and quality standards that need to be achieved. The complexity of regulations increases the costs and length of approval timelines negatively impacting the market.
Focus on orphan drugs development
Orphan drugs are therapies indicated for rare medical conditions affecting a small number of people. Due to the small patient populations, developing orphan drugs is usually not profitable for large pharmaceutical companies. However, governments across regions offer various incentives like tax holidays, waivers on regulatory/application fees, extended data exclusivity periods, and others for orphan drug development. These favorable initiatives encourage greater investments in this therapeutic area, thus, offering lucrative opportunities for players in the small molecule drug discovery market.
Rising partnerships and collaborations
Due to high R&D expenditure requirements, pharma companies are increasingly engaging in partnerships with biotech firms, contract research organizations and academic institutions to share risks and costs. While large pharma players provide funding and later stage development capabilities, smaller biotech start-ups contribute innovative early-stage projects and specialized research expertise. Such alliances allow tapping of complementary capabilities and resources across the value chain, thus, opening up new avenues of growth for stakeholders involved in the small molecule drug discovery process.
Link - https://www.coherentmarketinsights.com/market-insight/small-molecule-drug-discovery-market-5214
Key Developments
- In January 2024, Galapagos NV announced a strategic collaboration with BridGene Biosciences, Inc. to discover and develop new precision medicines for oncology targets. The collaboration will combine Galapagos' expertise in small molecule drug discovery with BridGene's IMTAC chemoproteomics technology. Galapagos will have exclusive rights for the further development and commercialization of any resulting product candidates.
- In August 2023, CAS, a division of the American Chemical Society, and Molecule.one, a leader in AI-driven pharmaceutical chemistry solutions, partnered to jointly develop computer-aided synthesis design technologies. This partnership aims to accelerate early-stage drug discovery and help chemists identify novel small molecules.
- In August 2022, BioDuro-Sundia and X-Chem, a leader in DEL technology for small molecule drug discovery, introduced DNA Encoded Compound Library (DEL) technology services in China to accelerate the discovery of small molecule drugs for innovative pharmaceutical companies
- In July 2022, RxCelerate launched RxNfinit, a new small molecule discovery platform that combines machine learning, in silico structure modeling, and combinatorial chemistry in a novel workflow. This platform offers notable improvements over existing tools for identifying small molecule drugs targeting a wide range of proteins.
Key Players: Pfizer Inc., Merck & Co., Inc., Novartis AG, Johnson & Johnson, AstraZeneca PLC, GlaxoSmithKline plc, Bristol Myers Squibb, Eli Lilly and Company, Gilead Sciences, Inc., Teva Pharmaceuticals, Boehringer Ingelheim GmbH, Thermo Fisher Scientific Inc., Charles River Laboratories, Labcorp Drug Development, Agilent Technologies Inc., ICON Plc, Eurofins Discovery, Immunocure Inc., Acacia Pharma Group, 4SC AG
