The drug discovery market is expected to register a CAGR of nearly 8. 3% during the forecast period, with a revenue of approximately USD 53,855 million in 2020, and it is expected to reach 85,785 million by 2026.
New York, March 05, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Drug Discovery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06030454/?utm_source=GNW
Amid the COVID-19 pandemic, the health system of countries is rapidly investing in research and development to combat the virus. Potential compounds were screened from the CHEMBL database, ZINC database, FDA approved drugs, and molecules under clinical trials. Research groups across the world are identifying drugs for the treatment of COVID-19, by screening both novel and existing drugs for their ability to alleviate symptoms and stem viral replication. Thus, in view of the ongoing pandemic, the drug discovery market is expected to be positively impacted by the urge to find a cure for COVID-19.
The propelling factors for the growth of the drug discovery market include the rising burden of a wide range of diseases (such as cardiovascular and CNS-related disorders), rising healthcare expenditure, and upcoming patent expiration of blockbuster drugs.
Cardiovascular diseases, infectious diseases, diabetes, and kidney-related complications have high burden, globally. For instance, according to the estimates of the Heart Disease and Stroke Statistics 2019, approximately 116.4 million, or 46% of adults in the United States were estimated to have hypertension.
Also, according to the American Cancer Society, in 2020, about 1.8 million new cancer cases are expected to be diagnosed, and approximately 606,520 cancer deaths may occur in the United States. Thus, the increasing burden of a diverse range of diseases among all age groups and its burden, globally, drive the demand for drug discovery and its market.
There has been an upsurge in the usage of advanced technologies, such as high throughput, bioinformatics, and combinatorial chemistry for better drug candidate identification. Drug discovery has evolved significantly with emerging technologies, helping the process to become more refined, accurate, and less time consuming. The adoption of artificial intelligence systems in disease diagnostics and treatment design started growing, and this is expected to witness robust growth in the coming years. For instance, on March 31, 2020, Existencia, an AI-based drug discovery company, entered a collaborative agreement with Diamond Light Source and Scripps Research for identifying COVID-19 antiviral therapies. It is anticipated to contribute to the growth of the market over the forecast period.
The gradual rise in the healthcare expenditure regionally helps the new pharmaceutical technology advancement. Although with high expenditure, there is a need for redirecting the resources.
Key Market Trends
Biologics Drug is the Segment that is Expected to Grow Fastest Under Drug Type
Biologics and drugs offer several benefits, such as highly effective and potent action, fewer side effects, and the potential to actually cure the diseases rather than merely treat the symptoms, which significantly increased the demand for these products.?
The efficacy and safety of biopharmaceuticals have led to their rapid adoption by people, driving the global drug discovery market. As per the report of Pharmaceutical Research and Manufacturers of America 2019, biopharmaceutical products have shown positive results for some of the chronic and rare diseases, which led to its sharp rise in the demand.
As per the study of Journal of Family Medicine and Primary care 2020, about 12 out of 46 drugs were anticancer agents in 2017, and in 2018, about 23 out of 55 were anticancer drugs.
As per the same study, the number of New Drug Applications (NDAs)/Biologic License Applications (BLA’s) registered per year has seen a significant increase over the past decade. In 2017, around 46 agents were approved, while in 2018, around 59 novel agents were approved. Therefore, it is expected to further drive the market studied over the forecast period.
In the pandemic, the rising adoption of biologics due to the certain advantages associated with them, especially target specificity, is boding well for the market studied. A significant number of major biotech firms are in the middle of a race to investigate the Sars-Cov-2 genome and prepare therapeutics for the same. For instance, in November 2020, South Korean pharma company Samsung Biologics entered a long-term agreement with Eli Lilly and Company to manufacture its investigational COVID-19 virus-neutralizing antibody, bamlanivimab.?Therefore, it is expected to further drive the market studied over the forecast period.
North America is Expected to Hold the Largest Market Share Over the Forecast Period
North America leads the world in terms of R&D spending on pharmaceuticals. It is also the largest market for bulk drugs and finished dosage formulations. The market operates as a free economy, which is designed to implement transparent trade practices and restrict anti-competitive practices.??
A major push for generic drugs and biosimilars is expected to boost the demand for specialty and complex ingredients, over the forecast period. ?For instance, in 2019, Biocon and Mylan jointly launched a cancer drug called Ogivri, a biosimilar to Herceptin, in the United States. Herceptin is a biologic therapeutic used for the treatment of all types of breast cancers and metastatic stomach cancers (gastric or gastroesophageal junction adenocarcinoma). ?
Also, in November 2019, Genesis Therapeutics announced that it raised USD 4.1 million in seed funding led by Andreessen Horowitz. This company is harnessing breakthrough AI-technology to optimize drug discovery and development.
Furthermore, the country has great opportunities for biosimilars, as biologics carry higher price. By 2020, the US market is estimated to become one of the major competitors of biosimilars. The key products in the US market are Remicade, Enbrel, Rituximab, Adalimumab, Infliximab, Etanercept, Darbepoetin Alpha, etc. Hence, owing to the aforementioned factors, the market is estimated to witness a high growth over the forecast period.
The COVID-19 pandemic highlighted the need for North American companies and research organizations to collaborate with the government to develop new drugs, in order to meet future health crises. Several universities and key players are focusing on developing vaccines for coronavirus. For instance, Eli Lilly partnered with AbCellera for the development of vaccines. Thus, this is expected to further boost the market studied over the forecast period.
The market studied has various pharmaceutical companies that are investing billions of dollars in artificial intelligence (AI), in order to make the drug discovery process significantly faster and cost-efficient. The pharmaceutical and biotech companies are increasing their collaborations with contract development and manufacturing organizations.
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