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The Growth Path For Drug Discovery Partners

Pharma And PE Acquisitions Of Outsourcing Partners Set To Continue

 
• By James West

Drug discovery services is one of the fastest growing areas of outsourcing because of pharma's increasing reliance on the companies operating within the field. This trend is causing increased interest from both pharma and PE-backed companies.  

Steps to growth
• Source: Shutterstock

Historically, drug discovery services such as chemistry and biology have been kept in-house, close to the IP heart of pharmaceuticals and biotechnology. However, in an increasingly competitive market, pharma and biotech have moved to a partnering model with contract research organizations (CROs) or drug discovery specialists to accelerate the successful number of drug candidates to progress and more effectively test across the pre-clinical phase. There is a growing trend toward outsourcing drug discovery and other pre-clinical services.

As pharma outsourcing increases, total outsourced pre-clinical development is expected to grow at a CAGR of 8% from 2021 onwards....

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