Drug Discovery Outsourcing Market Size, Share, Growth Analysis, By Workflow(Target Identification & Screening, Target Validation & Functional Informatics, Lead Identification & Candidate Optimization, Preclinical Development), By Therapeutics Area(Respiratory system, Pain and Anesthesia, Oncology, Ophthalmology), By Service Type(Chemistry Services, Biology Services), By End User(Pharmaceutical & Biotechnology companies, Academic Institutes, and Others), By Region - Industry Forecast 2024-2031

Drug Discovery Outsourcing Market Drivers

Increasing Investment to Develop Healthcare Infrastructure will Bring Lucrative Opportunities for Global Drug Discovery Outsourcing Market

• The rising R&D expenditure of pharmaceutical and biopharmaceutical companies is prompting them to opt for fully integrated or functional outsourcing services, from the early development stage to the late-stage development phase, for drug discovery and development. As there is enormous pressure on pharma companies to contain fixed costs, outsourcing has evolved as a strategic alternative to overcome the lack of in-house resources required for new product development. Big pharma companies are transitioning to a leaner business model that relies heavily on outsourcing. Most pharmaceutical and biopharmaceutical companies outsource their testing functions during R&D to improve profitability, meet the timelines involved in drug development, and save costs. This is evident from the recent agreements by major pharmaceutical companies with CROs providing drug discovery and development services. Thus, increasing pharmaceutical R&D expenditure supports the growth of the drug discovery services market.

Drug Discovery Outsourcing Market Restraint

Stringent Policies and High Manufacturing Costs to Hinder Drug Delivery Outsourcing Market Growth

• Securing safety and efficacy is the prime focus of regulatory authorities during drug approval hence, it substantially increases the cost of drug development and the final product. In price-sensitive emerging markets, this factor can significantly impact the uptake of a particular drug. Apart from this, various legislations that ensure the quality of the product (such as GMP) often increase manufacturing costs. Stringent guidelines govern animal testing in drug discovery. Mice, rats, fish, amphibians, and reptiles are the most commonly used animals in any research. Concerns regarding the ethical use of animals in research have driven governments to introduce legislation for animal safety and use, which presents several challenges to the smooth functioning of drug discovery research. This has forced companies to implement other techniques to minimize animal use. For example, Novo Nordisk uses bio simulation, which involves using computer models to simulate human biology. However, this has not been fully adopted across the market.