Discovery Services Market Intelligence

Report Coverage

  • Key Supply Market Trends
  • Supplier Capability Overview
  • Mergers, Acquisitions, Collaboration and Divestment
  • Discovery Chemistry: Sourcing Alternatives

Market Size

Global Market Size

$26 Bn


5-6 Percent

Table of contents

  1. Discovery Services Executive Summary
  2. Executive Summary
  3. COVID-19 Update


  1. COVID-19 Update
  2. COVID-19 Update


  1. Discovery Services Market Analysis
  2. Category Definition
  3. Global Market SIze
  4. Regional Overview
  5. Porter's Five Forces Analysis
  6. Market Trends


  1. Industry Best Practices
  2. Best Practices-Pricing Model
  3. Sourcing Alternatives


  1. Innovations Framework
  2. Innovations


  1. Sustainability
  2. Sustainability

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Global Market Outlook on Discovery Services

  • The pre-clinical testing market is being impacted by supply shortage of chemicals, slow pace of sample shipments and logistics. Huge investments on artificial intelligence could be one of the significant advancements, given the need to speedup the discovery process

  • Discovery chemistry services are highly fragmented and is a heavily outsourced function for small molecule discovery and with the rising numbers of biologics in pharma pipeline, the demand for discover chemistry is being affected adversely

  • The market dynamics of research chemistry can be understood from the demand-supply perspective

–From the demand side, pharmaceutical companies are facing pipeline issues and outsourcing additional activities. This trend has led to the emergence of integrated chemistry services, with emerging nations like India and China becoming favorable destinations

–From the supply side, service providers have been cognizant of the requirements. Suppliers like India's Syngene, China's Wuxi AppTec, and Poland's Selvita are becoming horizontally integrated to provide services across the pharmaceutical value chain 

  • The discovery chemistry function is highly outsourced to leverage technical expertise and specific therapeutic area skill set at CROs

Regional Market Share 

  • It is easier to offshore more routine services like medicinal chemistry and HTS to emerging regions like India and China.However, services like radiochemistry that require strict regulatory guidelines are mostly near shored to the developed markets
  • This is expected to change in the future with suppliers like WuxiApptec building capabilities in technologies like computer aided drug discovery, improvements in fragment based drug discovery and sponsor's willingness to outsource core function

Key Supply Market Trends

Adoption of Integrated Services

  • One of the major trends in early drug discovery stage is toward adoption of integrated services

–For Example, China's Shangpharma added biologics to its service portfolio, while AMRI having offering from discovery to development

–Wuxi AppTec's core business strength was in synthetic chemistry, however, it expanded into IDD and pre-clinical services to address the growing demand in China

Service Expansion and Consolidation

  • Suppliers are expanding upstream and downstream services, such as biologics and clinical development, to get premium pricing on differentiated business. For examples, AMRI has its offering from API development to regulatory support and clinical trial materials (CTM) manufacturing
  • Consolidation in supplier base is also occurring, wherein two or more suppliers collaborate to take advantage of complementary capabilities. For example, Cyprotex partnered with sygnature discoveries to broaden their services offering (combining medicinal chemistry and ADME Tox)

Movement to Low-cost Destinations

  • With rising costs and added pressure to invest in new services, it is becoming difficult for suppliers in emerging countries to provide cost leverage and also maintain its margins

–To counter such a tricky scenario, these suppliers are moving to low cost cities/Tier II cities such as Wuhan and Jiangsu provinces in China. Example, Wuxi, Pharmaron, etc.

–Onyx Scientific, a UK-based CMO, not only added research services like chemistry and process development, but it also has access to sites in India for technology transfers and other areas

Insourcing Services

  • As a new service opportunity, suppliers hire chemists and place them in the client's facilities. These chemists are on the suppliers payrolls and the supplier is responsible for all the benefits to be given to the chemists
  • For example: Sigma –Aldrich provides insourcing opportunities for computational chemists and AMRI has pledged to drive the concept of insourcing in emerging countries like Singapore and India

Launch of Research Institutes

  • Research institutes are being set up by governments to facilitate innovative drug discovery
  • For example: The UK government has set up Rosalind Franklin Institute (RFI) with integrated cloud and AI features. This would lead to an automated chemistry lab, which would speed up the discovery process

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