Outsourced Drug Discovery Market will Witness Huge Growth till 2027 & Covid-19 Analysis

In 2017, the global outsourced drug discovery market was worth US$ 20.7 billion, and it is predicted to grow at a CAGR of 12.1 percent from 2019 to 2026. To minimize medication development delays and costs, pharmaceutical corporations are gradually outsourcing R&D efforts to academia and private Contract Research Organizations (CROs). In the last two decades, the pharmaceutical sector has seen significant changes, including a shift toward biologics, patent expiration, and the extraordinary shrinking of giant pharmaceuticals' internal development.

The acceptance of the Outsourced Drug Discovery Market has accelerated as a result of all of this. In the biopharmaceutical industry, an estimated 75.0 to 80.0 percent of R&D spending can be outsourced, offering opportunities for CROs, which is likely to increase the market growth. Furthermore, segmenting the various stages of drug discovery, such as hit confirmation, lead generation, lead optimization, and high-speed screening, allows businesses to focus on their core competencies. Due to the availability of a competent, low-cost workforce and high-quality data, pharmaceutical corporations are working with manufacturing facilities in emerging countries.

Cost-cutting, the pursuit of innovation, obtaining access to specialist knowledge and technology, and enhancing speed and agility are all driving pharma businesses to increase their outsourcing levels. As a result, competition among important companies is projected to heat up, resulting in the creation of a slew of new startups across hotspot regions including the Syngene International Ltd., United States, a renowned CRO based in India, China, for example, extended its R&D relationship with Baxter Healthcare Corp. until 2024 in July 2018. GlaxoSmithKline (GSK) and the firm signed a multi-year collaboration in March 2018 to speed up the discovery of new medicine candidates.

Due to the suspension of many clinical trials as a result of the ongoing COVID-19 pandemic, various medication research processes have halted. On a more positive note, Outsourced Drug Discovery Market is expected to receive considerable incentives to invest in developing medications and vaccines to combat infectious diseases. Oncology, heart disease, and a variety of other rare diseases continue to pose public health challenges. Clinical research is required to address these issues. CROs are expected to use their imagination to the fullest extent possible. Companies are increasingly opting for outsourcing to strengthen their clinical trials due to an urgent requirement for an effective vaccine/drug, which is projected to fuel market growth over the next several years.