The purpose of drug discovery services is to reduce the expenses and duration of drug discovery. The technique of drug discovery is employed in pharmacology, biotechnology, and medicine to invent and develop new drugs. This procedure involves discovering potential drug candidates, producing and characterizing them, selecting the most promising ones, and conducting assays to assess their therapeutic efficacy. Once a compound has proven its worth in these evaluations, it will proceed to the drug development stage, culminating in clinical trials. The primary components of drug discovery services include identifying drug targets, selecting drug candidates, designing drugs based on fragments, recognizing lead compounds, and optimizing leads. The use of drug discovery services extends beyond pharmacology, biotechnology, and medicine. DNA analysis is a crucial tool in forensics, paternity testing, disaster victim identification, and anthropology, and drug discovery services play a significant role in these fields.
The market for drug discovery services is driven by various factors, including a rise in research and development spending, the preference of major pharmaceutical companies for outsourcing to overcome obstacles, and a surge in demand for outsourcing analytical testing and clinical trial services.
In 2023, the Drug Discovery Services Market is valued at USD 20.6 billion globally. The forecast period, which spans from 2023 to 2030, is expected to witness a CAGR of 14.9%, ultimately resulting in the market reaching a value of USD 54.45 billion by 2030.
The COVID-19 pandemic has had a significant impact on the drug discovery market, with a surge in investments in research and development to combat the virus. Existing drugs and compounds have been screened for their potential efficacy against COVID-19, and new drugs have been developed specifically to treat the disease. This has created opportunities for growth in the drug discovery market, as companies and research organizations seek to develop new and innovative therapies. The development of new and effective drugs is essential to address this burden and improve patient outcomes. However, the drug discovery process is complex and costly, involving extensive preclinical and clinical testing. Clinical trials, in particular, are expensive and time-consuming, often taking years to complete. To streamline the drug discovery process and reduce costs, new strategies such as the use of artificial intelligence and machine learning are being explored. These technologies can help identify promising drug candidates and optimize clinical trial design, potentially reducing the time and cost required for drug development.
Advanced technologies like high-throughput process development, bioinformatics, and combinatorial chemistry have been increasingly utilized to improve the identification of drug candidates. These technologies have contributed to significant advancements in drug discovery, resulting in a more precise, efficient, and timely process. Additionally, the use of artificial intelligence systems for disease diagnosis and treatment design is on the rise and is expected to experience substantial growth in the future.
Proteomics technologies, including mass spectrometry, are increasingly recognized as powerful tools for providing valuable insights into every stage of the oncology drug discovery process. They can help uncover and validate new drug targets, understand drug mechanisms of action, identify novel diagnostic, prognostic, or predictive biomarkers, and more.
3D bioprinting technology has emerged as a powerful tool for drug discovery due to its ability to build tissue and organ structures. Unlike traditional 3D printing, which uses metals, plastics, and polymers, bioprinting involves the precise deposition of cells and biomaterials using a 3D printer to create anatomically correct biological structures. This allows for the creation of more accurate models for testing drugs and understanding disease mechanisms.
Quantum mechanics methods are known to increase the accuracy of predictions and provide more relevant models of chemical and biological objects and their interactions, especially when studying electron-based properties within the drug receptor microenvironment. However, molecular mechanics remains the traditional computational method for modeling in synthetic and organic chemistry, medical chemistry, and drug design despite its limitations. It is worth noting that QM methods are costlier than molecular mechanics.
The biopharmaceutical industry has been investing significantly in research and development, driving demand for outsourcing clinical trials and analytical testing services. The drug discovery services market has been witnessing a remarkable growth trajectory globally, attributed to increased research efforts on orphan pharmaceuticals and uncommon diseases. With the growing demand for biopharmaceutical treatments, the biologics industry has been propelled forward, accounting for about 20% of the pharmaceutical industry. This demand for biologics has led to the development of numerous novel and effective life-saving biologics treatments. Biologics companies are thus encouraged to invest more in research and development to develop new drugs for a wide range of common and uncommon diseases. The global drug discovery services market is further fueled by the patent expiration of existing drugs and the rising demand for biologics in emerging markets. This has led to a surge in demand for outsourcing services that cater to the needs of the biopharmaceutical industry, including clinical trial and analytical testing services.
Verge Genomics, a biotech firm that utilizes AI and human data to revolutionize drug discovery, has initiated a Phase 1 clinical trial of VRG50635 and has already dosed the first participant, according to an announcement. Numerous top biotechnology companies are presently competing to scrutinize the SARS-CoV-2 genome and create treatments, with the ongoing COVID-19 pandemic significantly influencing the expansion of biologics through the emergence of new biologics for SARS-CoV-2.