Drug Discovery Outsourcing Market Size, Share & Trends Report

Drug Discovery Outsourcing Market Size, Share & Trends Analysis Report By Drug Type (Small, Large Molecules), By Workflow, By Therapeutics Area, By Service Type, By End-user, By Region, And Segment Forecasts, 2023 - 2030

  • Report ID: GVR-2-68038-392-8
  • Number of Report Pages: 187
  • Format: PDF, Horizon Databook
  • Historical Range: 2018 - 2021
  • Forecast Period: 2023 - 2030 
  • Industry: Healthcare

Research Methodology

A three-pronged approach was followed for deducing the drug discovery outsourcing market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for drug discovery outsourcing market to gather the most reliable and current information possible.

  • We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
  • We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
  • We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
  • We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
  • We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of drug discovery outsourcing market data depending on the type of information we’re trying to uncover in our research.

  • Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

  • Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

  • Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

  • Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

  • Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

  • Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

  • This step also entails the finalization of the report scope and data representation pattern.

  • Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Drug Discovery Outsourcing Market Categorization:

The drug discovery outsourcing market was categorized into six segments, namely workflow (Target Identification & Screening, Target Validation & Functional Informatics, Lead Identification & Candidate Optimization, Preclinical Development, Other Associated Workflow), therapeutics area (Respiratory system, Pain and Anesthesia, Oncology, Ophthalmology, Hematology, Cardiovascular, Endocrine, Gastrointestinal, Immunomodulation, Anti-infective, Central Nervous System, Dermatology, Genitourinary System), drug type (Small Molecules, Large Molecules (Biopharmaceuticals)), service type (Chemistry Services, Biology Services), end-user (Pharmaceutical & Biotechnology companies, Academic Institutes), and region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa).

Segment Market Methodology:

The drug discovery outsourcing market was segmented into workflow, therapeutics area, drug type, service type, end-user, and region. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

  • Demand estimation of each product across countries/regions summed up to from the total market.

  • Variable analysis for demand forecast.

  • Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

  • Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

  • Used extensively for new product forecasting or analyzing penetration levels.

  • Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

  • Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

  • This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The drug discovery outsourcing market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into thirty-three countries, namely, the U.S.; Canada; the UK; Germany; France; Italy; Spain; Netherland; Belgium; Switzerland; Russia; Sweden; China; India; Japan; Thailand; Australia; South Korea; Malaysia; Indonesia; Singapore; Philippines; Colombia; Chile; Brazil; Mexico; Argentina; South Africa; Saudi Arabia; UAE; Kuwait; Egypt; Israel.

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Drug discovery outsourcing market companies & financials:

The drug discovery outsourcing market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

  • EVOTEC - Evotec is a contract research company that offers pharmaceutical and biotechnology firms medication development and discovery services. At the moment, the business has operations in the US, Germany, France, and the UK. It is effective in important therapeutic domains including neurology, immunology & inflammation, metabolic disorders, and cancer. The firm provides research informatics, in silico drug discovery, proteomics, and metabolomics, in vitro and in vivo pharmacology, drug metabolism and pharmacokinetics, and cell and protein synthesis.

  • LABORATORY CORPORATION OF AMERICA HOLDINGS - The business offers complete drug development services as well as clinical laboratory services. For its clients, the business also offers technologically advanced and diagnostic solutions. The business is divided into two main segments: Labcorp Diagnostics (Dx) and Labcorp Drug Development (DD). The company's Dx business sector offers services including Productivity, Testing and Related Services, and Testing Operations, among others. On the other hand, the company's DD sector offers preclinical, central laboratory, clinical development and commercialization, and technological solutions services. To support clinical trial activities in almost 100 countries, the company also operates a central laboratory, preclinical, and clinical development business.

  • GENSCRIPT - GenScript is a publicly traded firm that provides goods and services for basic life sciences research, translational biomedical research, and drug development. Molecular biology, protein expression, bespoke antibodies, antibody & protein engineering, CRISPR, peptide synthesis, and in vitro & in vivo pharmacology are among the biological research services it provides. A biologics CDMO platform, a life-science services and products platform, an industrial synthetic products platform, and an integrated global cell treatment platform comprise the company's four main platforms. The business is present in several nations, including the UK, South Korea, Germany, Italy, and the US.

  • CHARLES RIVER LABORATORIES - Clinical laboratory services and preclinical services are offered by Charles River Laboratory to the biotechnology and pharmaceutical sectors. The three divisions that make up Charles are Manufacturing Support, Research Models and Services (RMS), and Discovery and Safety Assessment (DSA). The DSA section provides services in toxicology, pharmacokinetics, drug metabolism, and bioanalysis. It provides its products and services to hospitals, clinics, academic institutions, biotechnology and pharmaceutical businesses, and manufacturers of medical devices. Canada, Finland, Belgium, France, Hungary, Germany, Italy, China, Italy, Japan, Spain, the Netherlands, and the United Kingdom are among the countries where the corporation is present.

  • WUXI APPTEC - WuXi AppTec offers pharmaceutical, biotechnology, and medical device firms contract research and development outsourcing services. Safety pharmacology, pharmacokinetics, drug metabolism, bioanalysis, and medicinal and analytical chemistry are among its pharmaceutical services. In addition, WAI provides genetic toxicology, pre-clinical services, packaging & validation testing, toxicological testing, biocompatibility testing, and material characterization services. It functions as WuXi PharmaTech (Cayman) Inc.'s subsidiary. WAI has a medical device testing facility in China and collaborates strategically with MedImmune, LLC and REGENXBIO Inc. The business is present across the Middle East, Asia, Europe, and the United States.

  • MERCK & CO., INC. - An international corporation that offers healthcare solutions is Merck & Co., Inc. It is divided into two business segments: animal health and pharmaceutical. It operates throughout Africa, Oceania, Latin America, Asia, Europe, and North America. Throughout these territories, the corporation works in over 140 nations. It offers consumer health, allergopharma, biosimilars, performance materials & biopharma, and life sciences goods. In the healthcare industry, diabetes, cancer, vaccines, and infectious illnesses are Merck's main areas of concentration. Through Merck Animal Health, it offers products that promote animal health as well.

  • THERMO FISHER SCIENTIFIC, INC. - Serving science well, Thermo Fisher Scientific Inc. is a well-known leader. More than 4,000,00 clients who work in biotech and pharmaceutical companies, government organizations, academic institutions, research centers, hospitals, clinical diagnostic labs, and environmental, process control, and industrial quality settings are served by the company. Specialty diagnostics, analytical instruments, life sciences solutions, and laboratory goods & biopharma services make up the company's four business segments. Patheon, Unity Lab Services, Fisher Scientific, Invitrogen, Applied Biosystems, PPD Inc., and Thermo Scientific are the company's seven brands. It uses a variety of catalogs, e-commerce, third-party distributors, customer support representatives, and direct sales teams to market its goods. It is present in several nations as well as North America, Europe, and Asia Pacific.

  • DALTON PHARMA SERVICES - Dalton Pharma Services is a private contract research company that offers manufacturing and drug development services to a range of biotechnology and pharmaceutical sectors. The clinical and commercial phases of the regulatory procedure are supported by its contract capabilities. Along with these services, the firm offers cGMP API production, accelerated stability testing, formulation development, sterile filling services, bespoke synthesis, and API process development. It is limited to operating within Canada.

  • ONCODESIGN - A biotechnology company called ONCODESIGN is working on creating novel cancer treatment strategies. The business is working on two projects: programs to find new drugs and biomarkers and research to develop novel cancer treatments. Thanks to this technique, some intriguing compounds with significant cancer therapeutic promise may now be targeted. It has subsidiaries in both the US and Canada and conducts business in both France and the US.

  • JUBILANT BIOSYS - Jubilant Biosys is a biotechnology company that works with businesses in the biotechnology and pharmaceutical sectors to provide drug development services that include target discovery and candidate selection. The business belongs to Jubilant Life Sciences. It focuses on conditions affecting the central nervous system (CNS), oncology, pain and inflammation, and metabolic disorders. The business specializes in computational chemistry, translational sciences, in vivo and in vitro model development, structural biology, medicinal chemistry, and discovery informatics. The business is present in nations including Japan, the United States, and India.

Value chain-based sizing & forecasting

Supply Side Estimates

  • Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

  • Segment revenue determination via variable analysis and penetration modeling.

  • Competitive benchmarking to identify market leaders and their collective revenue shares.

  • Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

  • Identifying parent markets and ancillary markets

  • Segment penetration analysis to obtain pertinent

  • revenue/volume

  • Heuristic forecasting with the help of subject matter experts

  • Forecasting via variable analysis

Drug Discovery Outsourcing Market Report Objectives:

  • Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

  • Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

  • Understanding market estimates and forecasts (with the base year as 2022, historic information from 2018 to 2021, and forecast from 2023 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Drug Discovery Outsourcing Market Report Assumptions:

  • The report provides market value for the base year 2022 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

  • The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

  • We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

  • All market estimates and forecasts have been validated through primary interviews with the key industry participants.

  • Inflation has not been accounted for to estimate and forecast the market.

  • Numbers may not add up due to rounding off.

  • Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

  • Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

  • Latin America includes Central American countries and the South American continent

  • Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

  • Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

  • Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.

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