Outsourcing in Drug Discovery: The Contract Research Organization (CRO) Market, 8th Edition


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Outsourcing in Drug Discovery: The Contract Research Organization (CRO) Market, 8th Edition

In eight editions, Kalorama Information's report, Outsourcing in Drug Discovery, has kept the industry informed, providing answers to these questions and more. The 8th edition contains 2017 market size estimates and 2022 forecasts for 21 different parts of the process that might be outsourced, including:
  • Chemistry Services Market, 2017-2022
  • Building Blocks Outsourcing Market, 2017-2022
  • Compound Synthesis Market, 2017-2022
  • Library Construction Market, 2017-2022
  • Process Research Market, 2017-2022
  • Biology Services Market, 2017-2022
  • Protein Expression Market, 2017-2022
  • Structural Analysis Market, 2017-2022
  • Target Validation Market, 2017-2022
  • Pathways Analysis Market, 2017-2022
  • Screening Services Market, 2017-2022
  • Assay Development Market, 2017-2022
  • Primary Screening Market, 2017-2022
  • Secondary Screening Market, 2017-2022
  • Lead Optimization Market, 2017-2022
  • Early ADMET Market, 2017-2022
  • Analogues Creation Market, 2017-2022
  • Computational Support Market, 2017-2022
  • Other Services Market, 2017-2022
The drug discovery process is long, arduous and costly, which has driven outsourcing in this field. The first phase is discovery of a lead compound, a molecule that affects biological function by binding to a target protein or nucleic acid in a way that is useful for treatment of disease. The process by which molecules are identified for their therapeutic value involves synthesis and analysis of many derivatives of the original leads. There are several steps in the drug discovery process including hit confirmation, lead generation, lead optimization, and other studies. Drug discovery is a high-cost, risky business because only a fraction of the therapeutic targets selected for study will actually yield products that achieve regulatory approval by the Food & Drug Administration (FDA).

Since the last edition of Kalorama's report on the outsourcing of discovery of novel compounds in the pharmaceutical industry, the industry has seen dramatic change. Pharmaceutical companies facing cutbacks in R&D budgets and new demands for novel products need to outsource aspects of their operations. Core functions once kept in-house such as the discovery of potential new drugs are now commonly outsourced.


  • Executive Summary
    • Overview
      • Table Drug Discovery Timeline: Research to Viable Product to Commercialization
    • Scope and Methodology
    • Introduction
      • Pharmaceutical Industry Challenges
      • Number of New Molecular Entities (NMEs) and Biologics License Approved (BLAs) Approved
        • Table Number of New Molecular Entities (NMEs) and Biologics License Approved (BLAs) That the US FDA Center for Drug Evaluation and Research (CDER) Approved between 1993-2016
      • R&D Spending
        • Table Domestic R&D and R&D Abroad, PhRMA Member Companies: 1995-2016 ($ billion)
    • The Drug Discovery Process
      • Table The Drug Discovery Process
      • Accelerating the Drug Discovery Process
      • Bottlenecks within the Drug Discovery Process
    • Outsourcing to Increase Efficiency
      • Table Drug Discovery Processes Frequently Outsourced
    • Outsourcing Drug Discovery
      • The Outsourcing Decision
      • Developing an Outsourcing Plan
    • Contract Research Organizations
      • Strategic Versus Tactical Outsourcing Model
      • A New Model Emerging: Insourcing
      • Effective Communication is Essential
      • Mitigating the Challenges of Protecting IP Rights
    • Offshoring Contract Drug Discovery
      • Factors to Consider in Offshore Outsourcing
      • Benefits of Global Outsourcing
      • Concerns about Global Outsourcing
    • Outsourcing to China
      • Chinese Contract Research Organizations
      • FDA Offices in China
    • Outsourcing to India
      • Drug Discovery Services in India
    • Outsourcing to Eastern Europe
    • Drug Discovery Outsourcing Market
      • Current Market and Forecast
        • Table Global Drug Discovery Outsourcing Market, 2012-2022 ($ billion)
      • Market Analysis by Segment
        • Table Market Share Drug Discovery Market Segments, 2018 (%; Lead Optimization, Chemistry Services, Biology Services, HTS)
  • Introduction to Outsourcing Drug Discovery
    • Background
      • Number of New Molecular Entities (NMEs) and Biologics License Approved (BLAs) Approved
        • Table Number of New Molecular Entities (NMEs) and Biologics License Approved (BLAs) That the US FDA Center for Drug Evaluation and Research (CDER) Approved between 1993-2016
      • R&D Spending
        • Table Domestic R&D and R&D Abroad, PhRMA Member Companies: 1995-2016 ($ billion)
      • Ramping up the Pipelines
    • Outsourcing Drug Discovery
    • The Outsourcing Decision
      • Developing an Outsourcing Plan
      • Decision Criteria
    • Factors to Consider in Offshore Outsourcing
      • Benefits of Global Outsourcing
      • Concerns about Global Outsourcing
    • Selecting a Contract Research Organization
      • Introduction
      • Choosing the Right CRO
    • Global Outsourcing
      • Table Selection of Global Drug Discovery Outsourcing Collaborations
  • The Drug Discovery Process
    • Introduction
      • Table The Drug Discovery Process
      • Discovery Stages
    • Accelerating the Drug Discovery Process
      • Technologies Utilized in Drug Discovery
        • Table Drug Discovery Timeline: Research to Viable Product to Commercialization
        • Table Bioinformatics/Pharmacogenomics
        • Table Causes of New Drug Attrition (%; Unsuitable Bioavailability Profile, Toxicity, Commercial Setbacks, Other)
      • Bottlenecks within the Drug Discovery Process
    • Outsourcing to Increase Efficiency
      • Table Drug Discovery Processes Frequently Outsourced
    • Outsourcing to Access Novel Technologies
      • Bioinformatics
      • Lab-on-a-chip: Microfluidics in Drug Discovery
        • Table Bioinformatics as a Central Hub
  • Outsourcing Drug Discovery
    • Overview
      • The Traditional Drug Discovery Model Is Changing
        • Table A Selection of R&D Facilities Closed or Reduced in Size between 2010 and 2017
    • Outsourcing Drug Discovery Useful Core Management Tool
    • Contract Research Organizations
      • Introduction
      • Role of a CRO
      • Outsourcing Models
      • Effective Communication Is Essential for a Successful Partnership
      • Mitigating the Challenges of Protecting IP Rights
    • Outsourcing Contract Drug Discovery Offshore
      • Introduction
      • Robust Growth of Outsourcing Drug Discovery in Asia
      • Evolution of Contract Drug Discovery in Asia
    • Outsourcing to China
      • Introduction
      • Multi-National Pharmaceutical Companies Establish Research and Development Facilities in China
      • Chinese Contract Research Organizations
        • Table A Selection of Chinese Drug Discovery CROs
      • WuXi AppTec, China's Largest CRO
      • First Chinese CRO Alliance
      • FDA Offices in China
      • China's Management of Counterfeit Pharmaceuticals, IP Rights and Laws
    • Outsourcing to India
      • Introduction
      • Drug Discovery Services in India
        • Table A Selection of Indian Drug Discovery CROs
      • India's Handling of IP Rights and Laws
      • FDA Offices in India
    • Outsourcing to Eastern Europe
      • Introduction
      • Eastern European CROs
        • Table A Selection of Major CROs Operating in Eastern Europe
  • Drug Discovery Outsourcing Market
    • Overview
    • Drug Discovery Outsourcing Market
      • Current Market and Forecast
        • Table Global Drug Discovery Outsourcing Market, 2012-2022 ($ billion)
        • Table Contract Drug Discovery Services, by Market Segment, 2012-2022 ($ billion)
    • Market Analysis by Segment
      • Table Market Share Drug Discovery Market Segments, 2018 (%; Lead Optimization, Chemistry Services, Biology Services, HTS)
      • Chemistry Services Market
        • Table Chemistry Services Market: Revenues, Annual Growth, and Share of Outsourced Drug Discovery Market, 2012-2022 ($ billion)
        • Table Chemistry Market Revenue by: Building Blocks, Compound Synthesis, Libraries, Process Research, and Other Services, 2018 ($ billion)
      • Biology Services Market
        • Table Biology Services Market: Revenues, Annual Growth, and Share of Outsourced Drug Discovery Market, 2012-2022 ($ billion)
        • Table Biology Market Revenue by: Protein Expression, Structural Analysis, Target Validation, Pathways Analysis, and Other Service, 2018 ($ billion)
      • High Throughput Screening Services Market
        • Table HTS Services Market: Revenues, Annual Growth, and Share of Outsourced Drug Discovery Market, 2012-2022 ($ billion)
        • Table HTS Screening Services Market: Assay Development, Primary Screening, Secondary Screening, 2018 ($ billion)
      • Lead Optimization Services Market
        • Table Lead Optimization Services Market: Revenues, Annual Growth, and Share of Outsourced Drug Discovery Market, 2012-2022 ($ billion)
        • Table Lead Optimization Services Market: Early ADMET/Tox, Create Analogues, Computational Support, and Other Services, 2018 ($ billion)
    • Contract Drug Discovery Competitors
      • Recent Acquisitions in Drug Discovery Outsourcing, 2014-2016
    • The Evolving Open-Innovation Model Gaining Traction in Drug Discovery
      • Alliances between Academic Organizations and CROs
        • Table A Selection of Collaborations between CROs and Academic Organizations
      • Alliances between the Pharmaceutical/Biotechnology Industries and Academia
        • Table Alliances between Pharma/Biotech and Academia
      • Alliances between CROs
        • Table A Selection of Alliances between CROs
    • Market Growth Expanding Global Reach and Scale of Drug Discovery Services
      • Table Global Expansion of Contract Drug Discovery Services East and West
    • Is Artificial Intelligence (AI) the Future of Drug Discovery?
      • Evotec Buys into AI
      • Pharmaceutical Companies Collaborate with AI Companies
  • Competitor Profiles
    • Albany Molecular Research, Inc.
      • History and Lines of Business
      • Drug Discovery Services
    • Aptuit, a Division of Evotec AG
      • History and Lines of Business
      • Drug Discovery Services
    • Asclepia MedChem Solutions
      • History and Lines of Business
      • Drug Discovery Services
    • Asinex Ltd.
      • History and Lines of Business
      • Drug Discovery Services
    • AsisChem Inc.
      • History and Lines of Business
      • Drug Discovery Services
    • Aurelia Bioscience Ltd
      • History and Lines of Business
      • Drug Discovery Services
    • Axxam SpA
      • History and Lines of Business
      • Drug Discovery Services
    • BioDuro
      • History and Lines of Business
      • Drug Discovery Services
    • Charles River Laboratories, Inc.
      • History and Lines of Business
      • Drug Discovery Services
    • Charnwood Molecular
      • History and Background
      • Drug Discovery Services
    • ChemBridge Corp.
      • History and Background
      • Drug Discovery Services
    • Chemical Diversity Inc. (ChemDiv)
      • History and Lines of Business
      • Drug Discovery Services
    • ChemPartner Co., Ltd., subsidiary of ShangPharma
      • History and Lines of Business
      • Drug Discovery Services
    • Covance Inc. (Laboratory Corporation of America)
      • History and Lines of Business
      • Drug Discovery Services
    • CreaGen Biosciences, Inc.
      • History and Lines of Business
      • Drug Discovery Services
    • Crown Bioscience
      • History and Lines of Business
      • Drug Discovery Services
    • Cyprotex PLC, an Evotec AG Company
      • History and Line of Business
      • Drug Discovery Services
    • Domainex
      • History and Lines of Business
      • Drug Discovery Services
    • Enamine Ltd.
      • History and Lines of Business
      • Drug Discovery Services
    • Evotec AG
      • History and Lines of Business
      • Drug Discovery Services
    • Exelgen Discovery
      • History and Lines of Business
      • Drug Discovery Services
    • GVK Biosciences Private Limited (GVK Bio)
      • History and Lines of Business
      • Drug Discovery Services
    • GenScript USA Inc.
      • History and Lines of Business
      • Drug Discovery Services
    • Graffinity Pharmaceuticals GmbH (subsidiary of NovAliX S.A.S)
      • History and Lines of Business
      • Drug Discovery Services
    • HitGen Ltd.
      • History and Lines of Business
      • Drug Discovery Services
    • Hutchison MediPharma, Ltd.
      • History and Lines of Business
      • Drug Discovery Services
    • Jubilant Biosys Ltd. (JBL), a subsidiary of Jubilant Life Sciences Ltd.
      • History and Lines of Business
      • Drug Discovery Services
    • Nanosyn, Inc.
      • History and Lines of Business
      • Drug Discovery Services
    • Olon Ricerca Biosciences
      • History and Lines of Business
      • Drug Discovery Services
    • Pharmaron, Inc.
      • History and Lines of Business
      • Drug Discovery Services
    • Selcia Limited
      • History and Lines of Business
      • Drug Discovery Services
    • Selvita S.A.
      • History and Lines of Business
      • Drug Discovery Services
    • Shanghai Medicilon, Inc.
      • History and Lines of Business
      • Drug Discovery Services
    • Sundia MediTech Company, Ltd.
      • History and Lines of Business
      • Drug Discovery Services
    • Sygnature Discovery Limited
      • History and Lines of Business
      • Drug Discovery Services
    • TCG Lifesciences Pvt Ltd.
      • History and Lines of Business
      • Drug Discovery Services
    • Viva Biotech, Ltd.
      • History and Lines of Business
      • Drug Discovery Services
    • WuXi AppTec Co. Ltd.
      • History and Lines of Business
      • Drug Discovery Services
  • Appendix: Company Names and Addresses
    • Company Names and Addresses
      • 2-y Chem, Ltd.
      • Abgenix
      • AbMax Biotechnology
      • Absorption Systems
      • Acesys Pharmatech
      • Actimus Biosciences Pvt. Ltd.
      • ActivX Biosciences
      • Advinus Therapeutics Pvt. Ltd.
      • Advinus Therapeutics Ltd.
      • Agios Pharmaceuticals
      • Albany Molecular Research, Inc.
      • Advinus Therapeutics Ltd.
      • Affinium Pharmaceuticals
      • Albermarle Corp.
      • Alphora Research Inc.
      • Ambit Biosciences Corp.
      • Amgen, Inc.
      • Antabio Pharmaceutical
      • Apredica
      • Aptuit, LLC
      • Asclepia
      • Asinex Ltd.
      • Asinex
      • AsisChem, Inc.
      • Astex Therapeutics
      • AstraZeneca
      • Asymchem Laboratories Co., Ltd.
      • Asymchem Laboratories Inc.
      • Aurigene Discovery Technologies Ltd.
      • Aurelia Bioscience Ltd
      • Aurigene Discovery Technologies Limited
      • Axxam SpA
      • Berg Health
      • BioAnaLab Limited
      • BioBlocks Incorporated
      • Biocentrum Cell Laboratories, a division of Selvita S.A.
      • Biocius Life Sciences, Inc.
      • BioDuro, Inc.
      • BioDuro, Inc.
      • Biogen Idec
      • Biolog, Inc.
      • Bioneeds
      • Bionomics Ltd.
      • BioReliance Corporation
      • Biovays SAS
      • BioVisioN AG
      • Boehringer Ingelheim Pharmaceuticals, Inc.
      • British Columbia Cancer Agency
      • Caliper Life Sciences
      • Cambridge Antibody
      • Cambridge Major Laboratories, Inc
      • Cantab Biopharmaceuticals Ltd,
      • CarysBio Holding Ltd.
      • Cayman Chemical
      • Celera Genomics
      • CellCentric Ltd.
      • Cell & Molecular Technologies
      • Cellzome AG
      • Cellzome (UK)
      • Cetek Corp.
      • Eurofins Advinus Limited
      • Charles River Laboratories, Inc.
      • Charnwood Molecular
      • Chemizon, Inc.
      • ChemPartner Co., Ltd.
      • Chiesi Farmaceutici SP
      • Charnwood Molecular
      • Chembiotek
      • ChemBridge Corp.
      • ChemDiv
      • Chemizon, Inc.
      • Chemizon Ltd
      • ChemModeling, LLC
      • Chemotargets SL
      • ChemOvation Ltd.
      • ChemShop BV
      • ComGenex Inc.
      • Compugen
      • Covance, Inc
      • CreaGen Biosciences, Inc.
      • Creative BioStructure
      • Cresset Drug Discovery
      • Crown Bioscience Inc.
      • Crown Bioscience Inc.
      • CuraGen Corp.
      • Cychem, Inc.
      • Cyprotex PLC
      • Dalton Chemical Laboratories Inc.
      • Debiopharm International SA
      • Deltagen
      • DiscoveRx Corporation
      • DiscoveryBioMed, Inc.
      • Domainex
      • DoubleTwist Inc.
      • Dr. Reddy's Laboratories Ltd.
      • Dr. Reddy's Laboratories, Inc.
      • Dynogen Pharmaceuticals, Inc.
      • EM Industries, Inc.
      • Elan Pharmaceuticals
      • ElexoPharm GmbH
      • Ely Lilly and Company
      • Emerald Biostructures
      • Enamine LLC
      • Enamine Ltd.
      • Endo Pharmaceutical
      • Ensemble Discovery Corporation
      • Epiclone, L.A.
      • Evolus Inc.
      • Evotec AG
      • Evotec AG
      • Evotec (Asia) Pte. Ltd.
      • Evotec (India) Private Limited
      • Exelgen Discovery
      • Exscientia
      • ExonHit Therapeutics SA
      • ExSAR
      • Flourous Technologies
      • GPC Biotech AG
      • GVK Biosciences Private Limited
      • GVK Biosciences Private Limited
      • GVK Biosciences Private Limited
      • Galapagos NV
      • GeneFormatics Inc.
      • Gene Logic Inc.
      • GenScript USA Inc.
      • GenScript Biotech Corporation
      • GlaxoSmithKline
      • Genentech, Inc.
      • Geneome Therapeutics
      • GeneProt
      • Genome BioSciences, Inc.
      • Genomics Collaborative Inc.
      • Genops Bioinformatics Inc.
      • GenOway
      • Insilico
      • GenScript USA Inc.
      • GenScript USA Inc.,
      • GenScript
      • Genta, Inc.
      • Genezyme Corporation
      • Gilead Sciences
      • Glaucus Proteomics BV
      • Graffinity Pharmaceuticals GmbH
      • Grünenthal Group
      • HD Biosciences, Inc.
      • HitGen Ltd.
      • Human Genome Sciences
      • Hutchison MediPharma Limited
      • Hybrigen
      • Hybrigenics SA
      • Icagen, Inc.
      • Iconix Pharmaceuticals, Inc.
      • ICOS Corporation
      • ID Business Solutions Ltd.
      • Indus Bioscience
      • Informax Inc.
      • iNovacia
      • Inpharmatica
      • InterChem
      • iThemba Pharma
      • Johnson Matthey Pharma Services
      • J-Star Research
      • Janssen Pharma
      • Johnson & Johnson
      • Jubilant Life Sciences Ltd.
      • Julilant Biosys Ltd.
      • Julilant Discovery Center (Noida)
      • Kalexsyn
      • Kendle International
      • Key Organics Ltd.
      • Laboratory Corporation of America Holdings
      • Lancaster Laboratories
      • Lark Technologies, Inc.
      • Laxai Corporation
      • Laxai Avanti Life Sciences
      • Lexicon Genetics Inc.
      • Life Chemicals Inc.
      • Linden Bioscience
      • Ligand Pharmaceuticals, Inc.
      • Magellan Laboratories
      • Maybridge plc
      • Medarex
      • Medicilon, Inc.
      • Medicilon, Inc.
      • Merck KGaA
      • Merrimack Pharmaceuticals, Inc.
      • Metabometrix Ltd.
      • MerLion Pharmaceuticals Pte Ltd
      • Metabometrix Ltd.
      • Micron Technologies, Inc.
      • Morphochem AG
      • MPI Research
      • Multispan, Inc.
      • Myriad Genetics Inc.
      • Naeja Pharmaceutical Inc.
      • Nanostream, Inc.
      • Nanosyn, Inc.
      • Navigen Pharma
      • NEOMED Institute
      • Neurodegeneration Consortium
      • Nextgen Sciences Ltd.
      • Nicholas Piramal India Limited
      • NiKem Research s.r.l.
      • NitroMed, Inc.
      • Novartis Institute of BioMedical Research
      • Numerate, Inc.
      • Nycomed GmbH
      • OncoDesign SA
      • OpGen
      • Organix Inc.
      • Organomed Corp.
      • Orion Pharmaceuticals
      • Oxford GlycoSciences Plc
      • Pcovery
      • PharmaCore
      • PharmaLink
      • Pharmaron Beijing Co., Ltd.
      • Pharmaron
      • Pharmidex
      • Parexel
      • Peakdale Molecular Ltd.
      • PepTech Corporation
      • Pfizer, Inc.
      • Procter and Gamble Company
      • Pharmaron Beijing Limited Co.
      • Pharmaron, Inc.
      • Pharmaron-Beijing
      • PharmEco
      • Pharmidex
      • Phenomix Corp.
      • Phylos Inc.
      • Polyphor Ltd
      • PD, Inc.
      • PRECOS Ltd.
      • Prestwick Chemical
      • Prestwick Chemical
      • Protein Mechanics, Inc.
      • Proteome Systems Ltd.
      • Proteologics Ltd.
      • ProteoMetrics Inc.
      • Protogene Laboratories Inc.
      • Provid Pharmaceuticals Inc.
      • Purely Proteins
      • Pyxis Discovery
      • Pyxis Discovery
      • Quantum Pharmaceuticals
      • Quintiles Transnational Corp.
      • Regulus Therapeutics
      • Reliance Life Sciences
      • Renovis
      • Rib-X Pharmaceuticals
      • Ricerca, LLC
      • RMC Biosciences, Inc.
      • Roche R&D Center Ltd.
      • Sai Advantium Pharma Ltd.
      • Scottish Biomedical
      • Scynexis, Inc.
      • Selcia Limited
      • SelciaWest
      • Selvita S.A.
      • Sequenom
      • Sequitur, Inc.
      • Shanghai GenMed
      • Shanghai Genomics
      • Shanghai LeadChem, subsidiary of Shanghai LeadDiscovery Pharmaceutical, Ltd.
      • Shanghai LeadDiscovery Pharmaceutical, Ltd.
      • Shanghai Medicilon
      • Shanghai United PharmaTech
      • Shasun Pharmaceuticals Ltd.
      • Shenogen Pharma Group
      • Shionogi & Co., Ltd.
      • Shire plc
      • Signature BioScience Inc.
      • Simulations Plus, Inc.
      • SomaLogic Inc.
      • Southern Research Institute
      • SPECS
      • Spectrum Bioscience
      • SRI Biosciences
      • Structural Bioinformatics, Inc.
      • Structural GenomiX
      • Sun Pharma Advanced Research Company
      • Sundia MediTech Company, Ltd.
      • Sundia MediTech Company, Ltd.
      • Sunesis Pharmaceuticals
      • Suven Life Sciences Ltd
      • Sygnature Discovery Limited
      • Synaptica Ltd.
      • Syngene International Pvt. Ltd.
      • Syngene International Pvt. Ltd.
      • Syrrx
      • TCG Lifesciences Limited
      • Targeted Molecules Corp.
      • Torcan Chemical Ltd.
      • Transform Pharmaceuticals Inc.
      • Venturepharm Group
      • VVertex Pharmaceuticals Inc.
      • Viva Biotech Ltd.
      • Vivo Biosciences Inc.
      • WIL Research U.S.
      • WIL Research Europe - Schaijk
      • WIL Research Europe
      • WIL Research UK
      • WuXI AppTec Co. Ltd.
      • WuXi AppTec, Inc.
      • WuXi AppTec, Inc.
      • WuXi AppTec, Inc.
      • Xencor
      • Yangtze River Pharmacy Group Co
      • Zensun Sci & Tech Co., Ltd
      • ZoBio BV
      • Zygogen, LLC

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