Small Molecule Drug Discovery Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

Small Molecule Drug Discovery Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The small molecule drug discovery market is expected to register a CAGR of 8.05% during the forecast period, 2022-2027.

Amid the COVID-19 pandemic, the health systems of countries have been heavily investing in research and development to combat the virus. Research groups across the world have started identifying small molecule drugs for the treatment of COVID-19 by screening both novel and existing drugs for their ability to alleviate symptoms and stem viral replication. For instance, the article titled "Recent Developments on Therapeutic and Diagnostic Approaches for COVID-19" published in January 2021, reported that by exploiting computational tools, researchers attempted to predict and design small-molecule and peptide-based antiviral agents against various targets of SARS-CoV-2 viral disease. It also reported that amid the pandemic, research was done on the repurposing of small molecules to develop a therapy for the treatment of COVID-19. Thus, given the ongoing pandemic, the small molecule drug discovery market is expected to be positively impacted by the urge to find a cure for COVID-19.

Factors such as the rise in demand for small-molecule drugs; an increasing number of contract organizations for research and development; and increasing usage of small molecules in the treatment of chronic diseases are expected to drive the growth of the market.

The increasing number of chronic diseases propels the market's growth. According to the British Heart Foundation's August 2022 statistics, there were around 7.6 million people in the United Kingdom living with some form of heart or cardiovascular disease in 2021. As per the GLOBOCAN 2020 statistics, globally, there were 19.3 million new cases of cancer in 2020 and this number is expected to reach 30.2 million by 2040. Such an increase in chronic diseases is expected to increase the demand for treatments, and ultimately the demand for small molecules. Thus, it is expected to drive the growth of the market.

Additionally, the launch of technologically advanced products by the market players is expected to propel the growth of the market. For instance, in July 2022, Dotmatics, one of the leaders in the research and development of scientific software connecting science, data, and decision-making, released a small-molecule drug discovery solution. It is an integrated scientific research and development platform with pre-configured workflows and expanded data management capabilities. Such launches are expected to propel the growth of the market.

Furthermore, in April 2022, Iktos and Teijin Pharma Limited signed a strategic collaboration agreement in artificial intelligence for new drug design. As per the agreement, Iktos generative modeling technology will be implemented and applied to several of Teijin Pharma’s small molecule drug discovery projects to expedite the identification of potential pre-clinical candidates. Such partnerships are expected to contribute to the growth of the market.

Thus, owing to the abovementioned factors, the market is expected to project growth over the forecast period. However, high drug development costs and strict regulations for drug development are expected to limit the market's growth over the forecast period.

Key Market TrendsThe Target ID/Validation Segment is Expected to hold a Significant Market Share over the Forecast Period

Target identification is made to identify the direct molecular target, such as protein or nucleic acid, of a small molecule. In the case of clinical pharmacology, target identification is aimed at finding out the efficacy of the target of the drug molecule. The main objective of target validation is to identify and access the chances of a molecular target in achieving the development of pharmaceuticals for therapeutic application.

Three key distinct and complementary approaches are used for target identification and validation, which include genetic interaction methods, direct biochemical methods, and computational interference methods. In many cases, combinations of multiple approaches may be required for the full characterization of the target.

Technology plays a crucial role in every aspect of small molecule drug discovery, starting from target identification and validation to lead optimization. Hence, technological advancements have been acting as a driving factor for the industry. For instance, in October 2020, Standigm Inc. and SK Holdings C&C, Co., Ltd. opened their artificial intelligence-based target identification platform, iCLUE&ASK, on a trial basis to the public. The platform offers to prioritize protein targets for a query disease and provides the results with evidence through an interactive user interface. Furthermore, in April 2021, Shionogi & Co., Ltd. entered into a research collaboration agreement with InveniAI LLC. The agreement includes artificial intelligence-powered multi-target drug discovery in the area of the psycho-neurological system using AlphaMeld. It is an AI drug discovery platform that enables the identification of multiple targets related to a specific disease and the mechanisms for treating those diseases.​

Additionally, in August 2021, Insilico Medicine, one of the industry leaders in end-to-end artificial intelligence for target discovery, small molecule chemistry, and clinical development, and Usynova signed a strategic cooperation to advance the development of small molecule innovative therapies.

Thus, owing to the abovementioned factors, the market segment is expected to project growth over the forecast period.

North America Expected to Dominate the Market Over the Forecast Period

North America currently dominates the overall market for small molecule drug discovery and is anticipated to continue to garner its largest share over the coming years. The major factors driving the growth of the market include rising cases of various chronic diseases, such as cardiovascular disease, cancer, etc., and increasing approval of new small molecules in the region.

According to the American Cancer Society's 2022 statistics, it is estimated that in 2022, there will be 1,918,030 new cases of cancer in the United States, of which 983,160 will be among males and 934,870 will be among females. Such a high burden of cancer is expected to drive the growth of the market as small molecules are largely employed in the treatment of cancer.

Strategic initiatives such as partnerships and collaborations undertaken by the market players are expected to drive the growth of the segment in the region. For instance, in January 2022, Amgen and Arrakis Therapeutics signed a research collaboration focused on the discovery and development of RNA degrader therapeutics against a range of difficult-to-drug targets in multiple therapeutic areas. This new class of targeted RNA degraders consists of small-molecule drugs that selectively destroy RNAs encoding disease-causing proteins by inducing their proximity to nucleases. Such research collaborations are expected to boost the growth of the market in the region.

Thus, owing to the abovementioned factors, the studied market in the North American region is expected to project growth over the forecast period.

Competitive Landscape

The small molecule drug discovery market is moderately competitive and consists of several major players. In terms of market share, a few of the major players currently dominate the market. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by introducing new ingredients at lower prices. Companies like Pfizer Inc., Bristol-Myers Squibb Company, Merck KGaA, Boehringer Ingelheim GmbH, and GlaxoSmithKline hold a substantial share in the market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.