Drug Discovery Services Industry Overview

Discovery and characterization of the novel drug candidate for preclinical development are primarily dependent on innovation, research, and science. Drug discovery is the process of discovering and designing novel candidates for medication and therapy. The most common drug discovery methods are molecular designing, molecular manipulation, drug metabolites, random screening, and others. However, the discovery process is generally expensive and time-consuming. Drug discovery services are predominantly designed with the purpose of minimizing the costs and time required for the process.

Drug discovery services find extensive usage in forensic science, paternity testing, anthropology, and disaster victim identification. DNA analysis is a crucial element of this segment. Drug discovery services are an amalgamation of drug-target recognition, drug design, lead optimization, compound recognition, and drug discovery selection. The market for drug discovery services is expanding rapidly due to increased demand for analytical testing and clinical trials.

Drug discovery is the process through which new candidates drugs and targets are discovered. Drug discovery programs often initiate due to emergence of disease or chronic clinical conditions for which there is not suitable medical treatment available. Drug discovery is an extensive process and covers lead discovery, preclinical development, clinical development, and commercialization. Certain pharmaceutical companies offer robust services in drug discovery to optimize drug discovery process, ensure product approval, and reduce costs of entire process.

Drug Discovery Services Market Drivers

Increasing prevalence of novel and rare disorders, rapid technological advancements in research tools, significant surge in unmet clinical demands, and progress of the pharmaceutical and biotechnology sector are some key factors expected to drive market revenue growth over the forecast period. Key companies in the market offer robust integrated and standalone drug discovery solutions for drug developers from characterizing novel drug candidates to clinical development.

These services significantly reduce time to clinic, provide thorough safety and toxicity reports, bridge the gap between clinical translation and drug development, and offer extensive data to help select correct drug candidate for research. Availability of state-of-the-art services at affordable costs has further accelerated drug discovery process and this is expected to drive revenue growth of the market going ahead. Drug discovery services enable pharmaceutical companies to minimize compound failure, develop a drug with acceptable safety profile, and reduce drug-drug interactions. Drug discovery services offer pharmacology studies across various therapeutic areas such as oncology, neuroscience, and immunology and rising incidence of chronic diseases such cancer and neurodegenerative medicine and need for novel medications are expected to further fuel revenue growth of the market going ahead.

Drug Discovery Services Market Restraints

Lack of skilled professionals and stringent product approval processes are some factors that can restrain market growth to a certain extent over the forecast period. High costs of drug discovery services, unavailability of advanced services in certain regions across the globe, slow pharmaceutical and biotechnology research, and unavailability of robust healthcare facilities are some other factors that can hamper market growth going ahead.

Limited availability of clinical research facilities, stringent regulatory framework concerned with preclinical studies and clinical trials, and high costs of manufacturing in low- and middle-income countries can further hamper revenue growth of the market. In addition, rising legal, ethical, and financial complications associated with drug design and development process are some factors that hinder drug development process and in turn, restrain market growth to a certain extent over the forecast period.

Drug Discovery Services Market Devlopments

The Drug Discovery Services Market is witnessing an accelerating expansion due to a substantial increase in medicines' demand and supply. Technological advancements, adoption of new techniques for drug discovery, and rising investment in the Research and Development segment are bolstering the growth of the market. Moreover, developments in the healthcare business sphere, surging demand for generic drugs, rise in the geriatric populace, and radical advancements in drug discovery services are fueling the growth of the market.

Various other factors have accelerated the growth of the Drug Discovery Services Market, along with the rapid expansion of the biotechnology and pharmaceutical industry. Rising awareness about chronic health conditions, increasing patient pool, a surge in unmet medical needs, an improved regulatory framework for drug discovery, and an increase in the number of contracts and agreements between prominent pharmaceutical and biotech giants are anticipated to add traction to the growth of the market. An increase in the outsourcing of drug discovery R & D and clinical trials of crucial drug candidates and the availability of advanced diagnostic procedures is presumed to drive the market's growth throughout the projected timeline.

However, the high costs associated with the research and development of new drug candidates and manufacturing, stringent FDA regulations, and inadequate healthcare facilities in low- and middle-income nations are expected to restrain the industry's growth.

Drug Discovery Services Regional Insights:

Drug Discovery Services North America Market

North America has held the largest share of the Drug Discovery Services Market over the last few years. It is expected to continue to dominate the market over the coming years. The substantial growth of the region's market can be attributed to the increasing incidences of chronic health conditions, high expenditure on healthcare infrastructure, and favorable reimbursement policies.

Drug Discovery Services Asia Pacific Market

Asia Pacific is expected to register a significant CAGR through the forecast period owing to rising growth prospects in emerging APAC countries and a shift in the research and manufacturing base of leading pharmaceutical companies. Several top pharmaceutical giants have entered the APAC region to reduce the manufacturing costs and exploit the growth opportunities. The extensive availability of scholars and qualified researchers, along with the low cost of operations in the APAC countries, is driving the growth of the market in the region.

Drug Discovery Services Top Companies and Competitive Landscape

Advancements in the drug discovery services coupled with product launches by significant companies and strategic alliances between pharmaceutical and drug discovery services companies.

Some key players operating in the global Drug Discovery Services Market are:

Albany Molecular Research, Inc.
Thermo Fisher Scientific
Evotec
Covance
GenScript
Pharmaceutical Product Development, LLC
SRI International
WuXiAppTec
Charles River Laboratories International
Selcia Limited
Viva Biotech
Domainex
Merck KGaA
Others

Drug Discovery Services Latest Industry News:

In February 2020, Eurofins Discovery and PharmaResources announced a collaboration to build a joint drug discovery platform for accelerating the development of small-molecule drugs.
In June 2020, Covance joined forces with Medable to pace up the adoption of the decentralized clinical trial technology. Covance also introduced a COVID-19 platform for clinical trials in the United States to offer vital information about the COVID-19 trials and accelerate the process of recruitment.

COVID-19 Impact on the Drug Discovery Services Market

The COVID-19 pandemic has created unprecedented disruptions in the global market for several industry verticals and is anticipated to affect the Drug Discovery Services Market significantly. In a bid to accelerate the research and drug discovery for a viable treatment for the COVID-19 pandemic, numerous pharmaceutical and biotechnology companies are collaborating with drug discovery services companies to develop therapeutics and vaccine candidates to combat the spread of the coronavirus. Rising R&D activities and increasing funding is accelerating the growth of the industry. The report also covers the pandemic's current and future impact on the market and offers an accurate estimation of the market scenario in a post-COVID-19 setting.

Furthermore, the report also assesses other market factors' impact on the Drug Discovery Services Market across key segments and geographical regions.

Regional Analyis Covers:

North America
Latin America
Europe
Asia Pacific
Middle East & Africa

Key Highlights of the Report:

The report offers a quantitative and qualitative analysis of the Drug Discovery Services Market trends and forecast estimations until 2027
An in-depth analysis of the Drug Discovery Services Market with respect to regions and segments to offer a better understanding of the current trends
Strategic recommendations to the established players and new entrants to fortify their presence in the industry
Comprehensive analysis of the market drivers and restraints along with threats and limitations
Extensive profiling of the key market players and their strategies to impart a better understanding of the competitive landscape of the global Drug Discovery Services Market

Drug Discovery Services Market Segment Analysis

Process

Target Selection
Target Validation
Lead Optimization
Candidate Validation
Others

Type

Medicinal Chemistry
Biology Services
Pharmacokinetics and Drug Metabolism

Drug Type

Biologics
Small Molecules

Therapeutic Area

Neurology
Diabetes
Oncology
Cardiovascular Diseases
Respiratory Illnesses
Others

End-User Industry

Hospital & Clinics
Pharmaceutical Companies
Biotech Companies
Research Institutes
Others