As of April 2023, the global pharmaceutical R&D pipeline has over 6000 molecules in active clinical development phase, showing a 5.8% increase from 2022. However, the pharma/biopharma industry shows overall stagnant R&D activity. Total R&D expenditure is approximately $276.81 billion, with a modest 2.5% growth from 2023 to 2024.      

What is driving transformation in the pharma industry?

  • Urgent need to streamline drug development with newer technologies.
  • Top 10 pharma companies contribute only 4-5% to R&D pipeline; top 25 contribute less than 10%. Small-to-mid and emerging biopharma players contribute over 16%.
  • Growing demand for outsourcing, with contract research organizations (CROs) and contract development and manufacturing organizations (CDMOs) leading industry growth.
  • Specialized lab testing, bioinformatics, and bioanalytical CROs driving partnerships for early-stage testing services.
  • Techniques like next generation sequencing (NGS) and high throughput screening (HTS) leading to increased collaboration between CROs and diagnostics players and central labs.

What strategic imperatives are shaping the landscape of global drug discovery and early development outsourcing services industry?

Disruptive Technologies

Leveraging artificial intelligence (AI)/machine learning (ML) tools and novel drug platforms to target undruggable pathways, in alignment with the FDA Modernization Act 2.0 guidelines.

Industry Convergence

Strengthening partnerships with specialized central labs as CROs expand into laboratory testing.

Innovative Business Models

Investing in technology-enabled drug discovery (TEDD) for efficient drug repurposing and predictive model development to accelerate drug development lifecycle.
How are drug discovery companies enhancing R&D and accelerating growth through ecosystem partnerships?

Partnership/Collaboration Year Focus Area Partnership Impact
Evotec SE’s partnership with Dewpoint Therapeutics 2023 Oncology The partnership has resulted in a strategic research collaboration that leverages Dewpoint’s advanced oncology pipeline programs, developed through its condensate biology and AI technology platform, along with Evotec’s key capabilities. This collaboration aims to significantly reduce risks and accelerate the progression of preclinical development candidates to clinical development phases (first-in-human [FIH] trials) by utilizing Evotec’s in-house INDIGO platform.
WuXi Biologics partnership with Myricx 2023 Antibody Therapies The partnership between Myricx, a UK-based biotech company, and WuXi Biologics, a global Contract Research and Development Manufacturing Organization (CRDMO), marks a significant step forward in the discovery and development of a novel class of Antibody-Drug Conjugate (ADC) payloads using
N-Myristoyltransferase inhibition (NMTi). Through this collaboration, Myricx aims to leverage WuXi Biologics’ expertise to advance the identified targets into novel antibody therapies, promising to revolutionize the landscape of treatment options in the field.
Sygnature Discovery’s collaboration with Axol Bioscience 2023 Neuro degenerative conditions In a strategic move to broaden its drug discovery service portfolio, Sygnature Discovery has forged a collaboration with Axol Bioscience. This partnership signifies Sygnature’s commitment to embracing cutting-edge methodologies by incorporating human induced pluripotent stem cell (iPSC)-derived microglia into high-content imaging in vitro screening workflows. This innovative approach holds the promise of revolutionizing drug discovery processes, potentially leading to the development of more effective treatments for various diseases.

Are you considering drug discovery ecosystem partnerships to survive and thrive?

About Frost & Sullivan
Frost & Sullivan, the growth pipeline company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation, and leadership. The company’s Growth Pipeline as a Service provides the CEO’s Growth Team with transformational strategies and best-practice models to drive the generation, evaluation, and implementation of powerful growth opportunities. Let us coach you on your transformational journey, while we actively support you in fostering collaborative initiatives within your industry’s ecosystem. Our transformation journey is fueled by four powerful components, ensuring your success in navigating the ever-changing landscape of your industry.

  • Schedule a Growth Dialog with our team to dive deeper into transformational strategies and explore specific needs within your company.
  • Become a Frost Growth Expert in your area of specialization and share your expertise and passion with the community through our think tanks.
  • Join Frost & Sullivan’s Growth Council and become an integral member of a dynamic community focused on identifying growth opportunities and addressing critical challenges that influence industries.
  • Designate your company as a Companies to Action to maximize your exposure to investors, new M&A opportunities, and other growth prospects.
Your Transformational Growth Journey Starts Here

Share This