Drug Discovery And Development Laboratory Services Market Size, Share & Trends Analysis Report By Drug Type, By Technology, By End-use, By Region, And Segment Forecasts, 2023 To 2030

Drug discovery and development have evolved drastically in the recent past and continue to trend with emerging advancements. Innovative and sophisticated approaches are being incorporated with novel modalities emerging continuously through multifaceted approaches.

Researchers and pharmaceutical giants are working extensively towards devising drug discovery approaches to establish simplified processes. This accelerates the process of finding a potential cure for diseases like cancers, genetic disorders, and rare diseases. For instance, Evotec has signed a multi-year collaboration with Takeda by which Evotec will improve its technology platform to establish at least five drug discovery programs in core therapeutic areas like oncology, neuroscience, gastroenterology, and rare diseases.

Chemical or biological molecules are tested for a specific therapeutic outcome using High-throughput screening (HTS) with regard to a specific biological target. Researchers are working towards the automation of organoid targets to be used for robust drug discovery processes using HTS. For instance, in September 2022, Molecular Devices entered into a collaboration with HeartBeat.bio AG, for automation and scaling of cardiac organoids for utility in the high-throughput screening process. This effectively targets the disease physiology along with as the assessment of cardiac toxicity using 3D cell cultures.

Technologies such as machine learning (ML) and Artificial Intelligence (AI) are increasingly used for the acceleration of laboratory-based drug discovery experiments and are positively impacting the growth of the market. For instance, in September 2022, CytoReason declared the extension of its collaboration with Pfizer to effectively utilize CytoReason’s artificial intelligence technology for drug development with Pfizer’s investment of USD 20 million.

Emergence of AI is revolutionary to gain scientific insights, establishing biomarkers, and development of models that predict an individual’s risk of developing various disease conditions. For instance, in September 2022, Novo Nordisk signed an agreement with Microsoft for the acceleration of its drug discovery and development process. The collaboration is intended to integrate Microsoft’s computational expertise with Novo Nordisk’s drug discovery capabilities.

Small-molecule drugs affect molecular pathways by focusing on specific proteins. Small molecules are either developed by rational drug design strategies or can be isolated from natural resources. Numerous potential small molecule compounds are discovered by pharmaceutical giants by their collaborative efforts. For instance, in October 2022, Eli Lilly and Schrödinger collaborated for the development of novel small molecule compounds. Schrödinger will evaluate and synthesize compounds per year, which will be developed by Lilly.

The demand for novel cancer therapeutics is on the rise in the U.S. due to the rising incidence of cancer cases. Novel therapeutic elements are discovered with consistent and collaborative research efforts to commercialize innovative, high-impact, and cost-effective therapeutics for various types of cancers. For instance, in July 2022, Aurigene Discovery Technologies entered into a collaboration with U.S. based EQRx to integrate Aurigene's small molecules interface with EQRx's business model to develop novel therapeutic candidates for immune-inflammatory diseases and oncology.

Drug Discovery & Development Market: Segmentation

Major companies operating in the market include F Hoffmann-La Roche AG, Agilent Technologies Inc., Eli Lilly and Company, Thermo Fisher Scientific Inc., AstraZeneca, Laboratory Corporation of America Holdings, Merck & Co. Inc., Abbott Laboratories Inc., Bayer AG, Pfizer Inc., GlaxoSmithKline PLC