U.S. Drug Discovery Outsourcing Market Size to Reach USD 3.44 Billion By 2033

According to latest report, the U.S.
drug discovery outsourcing market size was USD 1.85 billion in 2023,
calculated at USD 1.97 billion in 2024 and is expected to reach around USD 3.44
billion by 2033, expanding at a CAGR of 6.39% from 2024 to 2033.

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The increase in public-private partnerships focused on
developing new molecules, increasing prevalence of various diseases and the
growing need for innovative drug options have significantly enhanced
collaborations between service providers and drug developers. These
collaborations have contributed to propel market growth. 

The U.S. drug discovery outsourcing market deals with
practices used by biotechnology
and pharmaceutical companies to reduce the cost of drug development. There are
various outsourcing models that have been created over the years to meet drug
development service demands. The global market is experiencing significant
growth leading to the increase in adoption of outsourcing services and a rise
in focus on drug development across the globe. In addition, public and private
partnerships developed for the use of innovative drug molecules are expected to
drive market growth in the region. A notable factor that attracts pharmaceutical
research and development investments is the relative freedom in drug pricing in
the U.S. This flexibility enables companies to foster increased productivity
and research and development costs further contributing to propel the growth of
the U.S. drug discovery outsourcing market.

To increase their offerings, the industry is experiencing
frequent acquisition and merger activity in the U.S. The industry is
contributed by strict regulations leading to market requirements and the
development of manufacturing facilities to be in adhere to regulatory
standards. In addition, increasing pressure on pharmaceutical companies to
develop within limited budgets and shorter timelines creates significant
opportunities for contract service providers and hence opens up service
expansions in the industry are further anticipated for market growth during the
forecast period.

U.S. Drug Discovery Outsourcing Market
Key Takeaways:

• Lead identification & candidate
  optimization dominated the market in 2023 accounting for nearly 34.0% of
  the revenue share.
• The respiratory system segment led the
  market in 2023 with nearly 14.7% revenue share.
• Anti-infective therapy segment is anticipated
  to register the highest CAGR over the forecast period.
• Small molecules are pivotal in fostering
  innovative treatments, accounting for over 76.0% of the market revenue
  share in 2023.

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U.S. Drug Discovery Outsourcing Market Trends

• The increasing prevalence of various diseases such as
  cancer and diabetes is expected to drive the market growth.
• The increasing implementation of initiatives including the
  Drug Discovery Initiative under which industry, clinicians, and
  researchers contributed to propel the market growth.
• AI-generated drug discovery methods, with the increasing
  research and development activities driving the market growth.
• The rising need for skilled resources with combinational
  knowledge of computer software, analytical chemistry, and metabolism is
  further anticipated to drive market growth.

How can artificial intelligence revolutionize the U.S.
drug discovery market

Artificial intelligence is an advanced technology and
rapidly revolutionizes the world day by day. In drug discovery outsourcing, AI
helps to identify potential drug candidates faster and analyze vast datasets
quickly. AI allows researchers that how new drugs will perform and reduce
errors and costly trials. In addition, AI helps to allocate resources more
efficiently and save money and time. Furthermore, AI also helps to make more
informed decisions with next-generation analytics.

U.S. Drug Discovery Outsourcing Market Segment Insights

By workflow types

The candidate optimization and lead identification segment
dominated the market growth in 2023 accounting for nearly 34.0% of the revenue
share. Based on workflow, the market is divided into preclinical development,
functional informatics, target validation, lead identification & candidate
optimization, target identification and screening, and other related workflows.
The prevalence of considerable equipment for the projection of drug safety with
the use of in silico techniques contributed to propel the segment growth.

Other related workflows in the market such as database
management systems, handling instruments & molecule visualization,
software, and tools are expected to drive the segment during the forecast
period. Factors such as a wide array of services offered by private entities,
increased investment for outsourcing, and intensive research on novel drug
candidates in drug discovery can contribute to the segment growth.

 By therapeutic area types

The respiratory system segment accounted for the market
growth in 2023 with nearly 14.7% revenue share. Other major areas of therapy
using drug discovery outsourcing such as dermatology, hematology, ophthalmology,
oncology,
pain & anesthesia, and more. The increasing prevalence of respiratory
diseases is significant with chronic lower respiratory disorders being a major
concern in the U.S. In addition, increasing cases of drug resistance and high
prevalence of respiratory diseases, such as asthma, COPD, tuberculosis, and
bronchitis have supported the respiratory system segment. 

The anti-infective therapy segment is expected to grow
fastest during the forecast period. Medications such as antivirals,
antiprotozoal substances, antibacterial agents, antibodies, and antifungals are
included in this segment. The significant collaborations, such as British
Columbia cancer agencies partnering with Charles River Laboratories, Pcovery,
and Antabio. The aim behind this partnership is to develop new drug candidates
for cystic fibrosis infections, antifungal diseases, and cancer funded by Wellcome
Trust. These collaborative factors for novel drug discovery are anticipated to
drive the segment growth in the U.S. drug discovery outsourcing market. 

 By drug type insights

The small molecules segment accounted for the largest market
share of 76.0% in 2023 leading to the highly extensive resources and
specialized capabilities required for their development. The financial concern
of balancing such resources internally often leads companies to search for
external expertise. 

In addition, biopharmaceuticals
or large molecule is a protein-based class of drugs that include 1,300 amino
acids significantly improved by versions of innermost human proteins. These
small molecules held great capacity for disease prevention and diagnosis as
illustrated by early phase clinical
trials. In addition, significant investments for drug development
organizations are further expected to drive the growth of the small molecule
segment in the market during the forecast period.

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U.S. Drug Discovery Outsourcing Market Company Insights

Various small to medium-sized market players are present in
the market for U.S. drug discovery outsourcing. Major companies in the U.S.
drug discovery outsourcing industry such as Charles River Laboratories
International, Inc., Pharmaceutical Product Development, LLC, GenScript,
Laboratory Corporation of America Holdings, EVOTEC, and Albany Molecular
Research Inc. 

• These major market players are continuously concentrating
  on diligently putting efforts into increasing their manufacturing
  capabilities and focusing on developing novel drug substances. For
  instance, in July 2024, Exscietia plc announced that they are expanding
  its work with Amazon Web Services to use the cloud provider’s machine
  learning (ML) and artificial intelligence (AI) services to power its
  platform for end-to-end drug automation and discovery. Exscientia’s
  platform uses the scalability and flexibility of AWS and generative AI
  models to efficiently, quickly, and securely design drug candidates that
  aim to better target specific patients and diseases.

Some of the prominent players in the
U.S. drug discovery outsourcing market include:

U.S. Drug Discovery Outsourcing Market
Recent Developments

• In December 2023, Jubilant Biosys Limited, a
  global pharma and biotech industry partner, announced the successful
  achievement of Inipharm’s, a biopharmaceutical company based in Bellevue,
  Washington and San Diego, California, asset, INI-822, an orally-delivered
  small molecule inhibitor of HSD17B13 for fibrotic liver disease,
  progressing to Phase 1 clinical trials.
• In December 2023, MilliporeSigma,the
  U.S. and Canada Life Science business of Merck KGaA, Darmstadt Germany,
  launched AIDDISON™, a groundbreaking drug discovery software integrating
  virtual molecule design and real-world manufacturability.
• In September 2023, Charles River Laboratories International, Inc. and Related Sciences collaborated to utilize Logica, an
  AI-powered drug solution, for drug discovery on previously unexplored
  targets. This partnership exemplified the growing trend in the US drug
  discovery outsourcing market towards leveraging AI technologies like
  Logica to enhance efficiency and innovation.
• In March 2022,Thermo Fisher Scientific and Symphogen extended their collaboration to provide biopharmaceutical
  discovery and development laboratories with innovative tools and
  streamlined workflows for efficient characterization of complex therapeutic
  proteins.
• In August 2021, Eurofins announced a new
  commercial agreement with Fusion Antibodies plc; a company dedicated to
  pre-clinical antibody engineering, discovery, and supply for both
  diagnostic applications and therapeutic drugs, thus boosting its drug
  discovery services.

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Segments Covered in the Report

This report forecasts revenue growth at
country levels and provides an analysis of the latest industry trends in each
of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc.
has segmented the U.S. drug discovery outsourcing market

Workflow

• Target Identification & Screening
• Target Validation & Functional
  Informatics
• Lead Identification & Candidate
  Optimization
• Preclinical Development
• Other Associated Workflows

Therapeutic 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)

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Browse More Insights:

Biologics Market : The global biologics market size was estimated
at USD 511.04 billion in 2023 and is projected to hit around USD 1,374.51
billion by 2033, growing at a CAGR of 10.4% during the forecast period from
2024 to 2033.

Biotechnology Market : The global biotechnology market size was
estimated at USD 1.54 Trillion in 2023 and is projected to hit around USD 5.68
Trillion by 2033, growing at a CAGR of 13.95% during the forecast period from
2024 to 2033.

Drug Screening Market : The global drug screening market size was valued at USD 9.18 billion in 2023 and is anticipated to reach
around USD 43.01 billion by 2033, growing at a CAGR of 16.7% from 2024 to 2033.

Ophthalmic Drugs Market : The global ophthalmic drugs market size was
valued at USD 41.65 billion in 2023 and is projected to surpass around USD
70.07 billion by 2033, registering a CAGR of 5.34% over the forecast period of
2024 to 2033.

Oncology Market : The global oncology market size was
estimated at USD 222.36 billion in 2023 and is projected to hit around USD
521.60 billion by 2033, growing at a CAGR of 8.9% during the forecast period
from 2024 to 2033.

Clinical Trials Market : The global clinical trials market size
was estimated at USD 81.90 billion in 2023 and is projected to hit around USD
153.59 billion by 2033, growing at a CAGR of 6.49% during the forecast period
from 2024 to 2033.

U.S. Clinical Trials Market : The U.S. clinical trials market size was
valued at USD 25.81 billion in 2023 and is projected to surpass around USD
41.57 billion by 2033, registering a CAGR of 4.88% over the forecast period of
2024 to 2033.

U.S. Biotechnology Market : The U.S. biotechnology market size was
estimated at USD 552.49 billion in 2023 and is projected to hit around USD
1,794.11 billion by 2033, growing at a CAGR of 12.5% during the forecast period
from 2024 to 2033.

U.S. Pharmaceutical Market : The U.S. pharmaceutical market size was
valued at USD 602.19 billion in 2023 and is projected to surpass around USD
1,093.79 billion by 2033, registering a CAGR of 6.15% over the forecast period
of 2024 to 2033.

U.S. Small Molecule Innovator API CDMO
Market : The U.S. small molecule innovator API CDMO market size was exhibited at USD 8.50 billion in 2023 and is projected to hit
around USD 15.48 billion by 2033, growing at a CAGR of 6.18% during the
forecast period 2024 to 2033.

Small Molecule Drug Discovery
Market : The global small molecule drug discovery market size was exhibited at USD 75.98 billion in 2022 and is projected to
hit around USD 163.58 billion by 2032, growing at a CAGR of 7.97% during the
forecast period 2023 to 2032.

Artificial Intelligence In Drug
Discovery Market : The global artificial intelligence (AI) In drug discovery market size accounted for USD 1,495.8 million in 2022 and is estimated to
achieve a market size of USD 20,041.44 million by 2032, growing at a CAGR of
29.63% from 2023 to 2032.

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