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
Industry Convergence
Innovative Business Models
| 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?
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