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Outsourcing in Drug Discovery: The Contract Research Organization (CRO) Market, 5th Edition

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. Kalorama Information's Outsourcing in Drug Discovery captures this trend, offering unparalleled coverage of the drug discovery outsourcing market. It presents viewpoints from both customers and suppliers. Segments, size, and growth of the market are presented. The trend toward the increased use of offshore suppliers in China, India, Russia and Eastern Europe is covered in detail. The report also provides profiles of 23 suppliers, representative of those active in this market.

Segments covered in this report with market size estimates include:

  • Chemistry Services
    • Building Blocks
    • Compound Synthesis
    • Libraries
    • Process Research
    • Other Services

  • Biology Services
    • Protein Expression
    • Structural Analysis
    • Target Validation
    • Pathways Analysis
    • Other Services

  • Screening Services
    • Assay Development
    • Primary Screening
    • Secondary Screening

  • Lead Optimization
    • Early ADMET
    • Analogues Creation
    • Computational Support
    • Other services

In addition to market data and forecasts, the report covers issues such as:

  • Current outsourcing in drug discovery market size and future forecast
  • R&D scale-backs at major companies
  • The fastest-growing services for outsourcers
  • Logistics, IP, regulatory and other issues in China, India and Eastern Europe
  • Common discovery outsourcing pitfalls and how companies overcame them
  • What factors should a client consider when deciding whether to do a project in-house or outsource it?
  • The choice of a domestic outsourcing partner, or an overseas supplier?
  • Best practices when working with a CRO 
  • Strategic vs. tactical outsourcing models
This report provides an in depth look into the trends that have shaped the drug discovery outsourcing market today, and details the current and future global market.

The information for this report was gathered using both primary and secondary research including comprehensive research of secondary sources such as company literature, databases, investment reports, science, medical and business journals. Telephone interviews and email correspondence were the primary method of gathering information. For the purpose of this study Kalorama Information conducted interviews with key industry officials, consultants, and government personnel. These sources were the primary basis in gathering information specifically relating to revenue and market share data presented in this report. Specific interviews with pharmaceutical, biotechnology and contract research organizations included marketing directors, division managers, and product representatives.


  • Executive Summary
    • SCOPE AND METHODOLOGY
    • INTRODUCTION
      • Pharmaceutical Industry Challenges
      • Number of NMEs and BLAs Approved between 1993-2011
    • REDUCING R&D SPENDING
    • THE DRUG DISCOVERY PROCESS
      • Accelerating the Drug Discovery Process
      • Bottlenecks Within the Drug Discovery Process
    • OUTSOURCING TO INCREASE EFFICIENCY
    • OUTSOURCING DRUG DISCOVERY
    • THE OUTSOURCING DECISION
      • Developing an Outsourcing Plan
    • CONTRACT RESEARCH ORGANIZATIONS
      • Strategic Versus Tactical Outsourcing Model
      • Effective Communication
      • 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
    • OUTSOURCING TO INDIA
      • Drug Discovery Services in India
    • OUTSOURCING TO EASTERN EUROPE
    • DRUG DISCOVERY OUTSOURCING MARKET
    • CURRENT MARKET AND FORECAST
      • Global Economic Downturn has Minimal Affect on Drug Discovery
        • Table Global Drug Discovery Outsourcing Market, 2006-2016 (US billions)
    • MARKET ANALYSIS BY SEGMENT
  • Introduction To Outsourcing
    • BACKGROUND
    • NUMBER OF NMES AND BLASAPPROVED BETWEEN 1993-2011
    • REDUCING R&D SPENDING
    • RAMPING UPTHE PIPELINES
    • OUTSOURCING DRUG DISCOVERY
    • THE OUTSOURCING DECISION
      • Decision Criteria
    • FACTORS TO CONSIDER IN OFFSHORE OUTSOURCING
    • BENEFITS OF GLOBAL OUTSOURCING
      • Cost Advantage
      • Access to Talent and Technologies
      • Compressed Timelines
      • Increase Production
    • CONCERNS ABOUT GLOBAL OUTSOURCING
      • Intellectual property protection (IP)
      • Confidential Information and Trade Secrets
      • Fraud and Corruption
      • Meeting Regulatory Compliance Demands
      • Long distance
    • SELECTING ACONTRACT RESEARCH ORGANIZATION
      • Introduction
      • Choosing the Right CRO
      • Experience is Paramount
      • Facility Standards
      • Excellent Track Record
    • CONTRACT PHARMA'S OUTSOURCING SURVEY
    • GLOBAL OUTSOURCING
      • Table Selection of Global Drug Discovery Outsourcing Collaborations
  • The Drug Discovery Process
    • INTRODUCTION
    • DRUG DISCOVERY STAGES
      • Target Identification
      • Target Validation
      • High Throughput Screening
      • Lead Optimization
    • ACCELERATING THE DRUG DISCOVERY PROCESS
    • TECHNOLOGIES UTILIZED IN DRUG DISCOVERY
      • Combinatorial Chemistry
      • Bioinformatics/Pharmacogenomics
      • ADME/Tox Screening
      • High Throughput Screening
      • Computational Modeling and Bioinformatics
    • BOTTLENECKS WITHIN THE DRUG DISCOVERY PROCESS
    • OUTSOURCING TO INCREASE EFFICIENCY
    • OUTSOURCING TOACCESS NOVEL TECHNOLOGIES
    • BIOINFORMATICS
    • LAB-ON-A-CHIP:MICROFLUIDICS IN DRUG DISCOVERY
  • Outsourcing Trends
    • OVERVIEW
    • IS THE TRADITIONAL DRUG DISCOVERY MODEL CHANGING?
      • Table A Selection of R&D Facilities Closed or Reduced in Size Between 2010 and 2011
    • OUTSOURCING DRUG DISCOVERY USEFUL CORE MANAGEMENT TOOL
    • CONTRACT RESEARCH ORGANIZATIONS
      • Introduction
    • ROLE OF A CRO
    • STRATEGIC VERSUS TACTICAL OUTSOURCING MODEL
      • The Tactical Model
      • The Strategic Model
    • EFFECTIVE COMMUNICATION IS ESSENTIAL FOR A SUCCESSFUL PARTNERSHIP
    • MITIGATING THE CHALLENGES OF PROTECTING IPRIGHTS
    • OFFSHORING CONTRACT DRUG DISCOVERY
      • Introduction
    • CENTER OF GRAVITY SHIFTING FROM WEST TO EAST
    • EVOLUTION OF CONTRACT DRUG DISCOVERY IN ASIA
    • OUTSOURCING TO CHINA
      • Introduction
      • Multi-National Pharmaceutical Companies Establish Research
    • CHINESE CONTRACT RESEARCH ORGANIZATIONS
      • Table A Selection of Chinese Drug Discovery CROs
      • WuXi AppTec China's Largest CRO
    • FIRST CHINESE CROALLIANCE
    • FDAOFFICES IN CHINA
      • IP Rights Enforcement System
    • OUTSOURCING TO INDIA
      • Introduction
    • DRUG DISCOVERY SERVICES IN INDIA
      • Table A Selection Indian Drug Discovery CROs
    • INDIA'S HANDLING OF IPRIGHTS AND LAWS
      • Patent Filing Considerations
      • Limitations on Patentability
      • Compulsory Licenses
    • FDAOFFICES IN INDIA
    • OUTSOURCING TO EASTERN EUROPE
      • Introduction
    • Russian and Ukraine CROs
      • Table A Selection of Major CROs Operating in Eastern Europe
  • Drug Discovery Outsourcing Market
    • OVERVIEW
    • DRUG DISCOVERY OUTSOURCING MARKET
    • GLOBAL ECONOMIC DOWNTURN HAS MINIMAL AFFECT ON
    • CURRENT MARKET AND FORECAST
      • Table Global Drug Discovery Outsourcing Market, 2006-2016
      • Table Contract Drug Discovery Services, by Market Segment, 2006-2016
    • MARKET ANALYSIS BY SEGMENT
    • CHEMISTRY SERVICES MARKET
      • Current Market and Forecast
        • Table Chemistry Services Market: Revenues, Annual Growth, and Share of Outsourced Drug Discovery Market, 2006-2016
        • Table Chemistry Market Revenue by: Building Blocks, Compound Synthesis, Libraries, Process Research, and Other Services, 2011
    • BIOLOGY SERVICES MARKET
      • Current Market and Forecast
        • Table Biology Services Market: Revenues, Annual Growth, and Share of Outsourced Drug Discovery Market, 2006-2016
        • Table Biology Market Revenue by: Protein Expression, Structural Analysis, Target Validation, Pathways Analysis, and Other Service, 2011
    • HIGH THROUGHPUT SCREENING SERVICES MARKET
      • Current Market and Forecast
        • Table Screening Services Market: Revenues, Annual Growth, and Share of Outsourced Drug Discovery Market, 2006-2016
        • Table Screening Services Market: Assay Development, Primary Screening, Secondary Screening, 2011
    • LEAD OPTIMIZATION SERVICES MARKET
      • Current Market and Forecast
        • Table Lead Optimization Services Market: Revenues, Annual Growth, and Share of Outsourced Drug Discovery Market, 2006-2016
        • Table Lead Optimization Services Market: Early ADMET/Tox, Create Analogues, Computational Support, and Other Services, 2011
    • CONTRACT DRUG DISCOVERY COMPETITORS
      • Table A Selection of Drug Discovery Contractors, By Market Segment
    • EMERGENCE OF INNOVATIVE DRUG DISCOVERY BUSINESS MODELS
      • Alliances between Academic Organizations and CROs
        • Table A Selection of Collaborations between Academic Organizations and CROs
      • Alliances between CROs
        • Table A Selection of Alliances between CROs
    • MARKET GROWTH EXPANDING GLOBAL REACHAND SCALE OFDRUG DISCOVERY SERVICES
      • Table Global Expansion of Drug Discovery Services East and West
  • Competitor Profiles
    • ALBANYMOLECULAR RESEARCH, INC.
      • History and Lines of Business
      • Drug Discovery Services
      • Assay Design and Development Services
      • Key Features of Screening Capabilities
      • Screening Libraries
      • Lead Optimization
      • Natural Product Services
      • Medicinal Chemistry
      • Computer-Aided Drug Discovery (CADD)
      • In vitro ADMET
      • Financial Information
    • APTUIT, LLC
      • History and Lines of Business
      • Drug Discovery Services
      • Medicinal Chemistry
      • Computational Chemistry
      • Discovery Pharmacology
      • Drug Metabolism and Pharmacokinetics
      • Analytical Discovery Support
    • ARGENTA DISCOVERY, LTD. (GALAPAGOS)
      • History and Lines Business
      • Drug Discovery Services
    • ASCLEPIA MEDCHEM SOLUTIONS
      • HISTORY AND LINES OF BUSINESS
      • DRUG DISCOVERY SERVICES
      • Target Development
      • Hit to Lead
      • Lead Optimization
      • Preclinical Development
    • ASINEX LTD.
      • HISTORY AND LINES OF BUSINESS
      • DRUG DISCOVERY SERVICES
      • Computational Services
      • Medicinal Chemistry
      • Bioscreening
      • Library Design
      • Integrated Drug Discovery
    • ASISCHEM, INC.
      • HISTORY AND LINES OF BUSINESS
      • DRUG DISCOVERY SERVICES
    • AXXAM SPA
      • HISTORY AND LINES OF BUSINESS
      • DRUG DISCOVERY SERVICES
      • Assay Development
      • High-Throughput Screening
      • Hit Follow Up
    • BIO DURO
      • HISTORY AND LINES OF BUSINESS
      • DRUG DISCOVERY SERVICES
      • Chemistry Services
      • Biology Services
    • BIOFOCUS DPI
      • HISTORY AND LINES OF BUSINESS
      • DRUG DISCOVERY SERVICES
      • Integrated drug discovery
      • ADME/PK
      • Target discovery
      • Assay development & screening
      • Additional drug discovery services include:
    • CALIPER LIFE SCIENCES (PERKIN ELMER)
      • HISTORY AND LINES OF BUSINESS
      • DRUG DISCOVERY SERVICES
      • FINANCIAL INFORMATION
    • CHARLES RIVER LABORATORIES, INC.
      • HISTORY AND LINES OF BUSINESS
      • DRUG DISCOVERY SERVICES
      • FINANCIAL INFORMATION
    • CHEMBIOTEK
      • HISTORY AND LINES OF BUSINESS
      • DRUG DEVELOPMENT SERVICES
      • Medicinal Chemistry Services
      • Molecular Modeling Services
      • Chemistry Services
      • Molecular Biology Services
    • CHEMBRIDGE CORP.
      • HISTORY AND BACKGROUND
      • DRUG DISCOVERY SERVICES
      • Discovery Chemistry Services
      • Screening Libraries and EXPRESS-Pick Compound Collection
      • Chemical Building Blocks
      • Hit2Lead.com Online Chemical Store
    • CHEMICAL DIVERSITY INC.
      • HISTORY AND LINES OF BUSINESS
      • DRUG DISCOVERY SERVICES
      • Lead Optimization Services
      • High throughput Services
      • Biologically Annotated Libraries
      • Focused Diversity
    • COVANCE, INC.
      • HISTORY AND LINES OF BUSINESS
      • DRUG DISCOVERY SERVICES
      • FINANCIAL INFORMATION
    • CREAGEN BIOSCIENCES, INC.
      • HISTORY AND LINES OF BUSINESS
      • DRUG DISCOVERY SERVICES
      • Medicinal Chemistry
      • Synthetic Chemistry
      • Analytical Chemistry
    • CYPROTEX PLC
      • HISTORY AND LINE OF BUSINESS
      • DRUG DISCOVERY SERVICES
      • Integrated Drug Discovery Services
      • High Throughput ADME screening
      • Customised ADME assays
      • Genomic ADME
      • In silico pharmacokinetics modeling
      • In vitro toxicology
      • FINANCIAL INFORMATION
    • DOMAINEX
      • HISTORY AND LINES OF BUSINESS
      • DRUG DISCOVERY SERVICES
      • Protein expression
      • Structural Biology
      • Computational Chemistry
      • Design and synthesis from hits to candidate drugs
      • Biochemical Assays
    • EMERALD BIOSTRUCTURES
      • HISTORY AND LINES OF BUSINESS
      • DRUG DISCOVERY SERVICES
      • Gene to Structure
      • Fragment Screening
      • Rapid Co-Crystal Structures
      • Antibodies And Epitope Mapping
      • Membrane Proteins
      • Structural Genomics Services
      • Biophysical Characterization
    • ENAMINE LTD.
      • HISTORY AND LINES OF BUSINESS
      • DRUG DISCOVERY SERVICES
    • EVOTEC AG
      • HISTORY AND LINES OF BUSINESS
      • DRUG DISCOVERY SERVICES
      • Assay Development Services
      • High throughput Screening
      • Medicinal Chemistry Services
      • Compound Library Services
      • FINANCIAL INFORMATION
    • EXELGEN DISCOVERY
      • HISTORY AND LINES OF BUSINESS
      • DRUG DISCOVERY SERVICES
      • Collaborative Services
      • Additional Discovery Services
    • GVK BIOSCIENCES PRIVATE LIMITED
      • History and Lines of Business
      • DRUG DISCOVERY SERVICES
      • Bioinformatics
      • Chemoinformatics
      • Structural Biology
      • Biology Services
    • GENSCRIPT USA INC.
      • HISTORY AND LINES OF BUSINESS
      • DRUG DELIVERY SERVICES
      • Bio-Reagent Center
      • Bio-Assay Center
      • Lead Optimization Center
      • Antibody Drug Development
      • hERG testing for drug candidates
      • Bioprocess Services
    • GRIFFINITY PHARMACEUTICALS GMBH
      • HISTORY AND LINES OF BUSINESS
      • DRUG DISCOVERY SERVICES
      • Design and Synthesis
      • Array Production
      • Fingerprinting/Fragment Screening
      • Imaging Data Analysis
      • Hit Evolution
    • HUTCHISON MEDIPHARMA LTD.
      • HISTORY AND LINES OF BUSINESS
      • Drug Discovery Services
      • Drug Metabolism and Pharmacokinetics (DMPK)
    • JUBILANT BIOSYS LTD
      • HISTORY AND LINES OF BUSINESS
      • Drug Discovery Services
      • Discovery Informatics
      • Discovery Research
      • Drug Development
      • IT Services
    • NANOSYN, INC.
      • HISTORY AND LINES OF BUSINESS
      • Drug Delivery Services
      • Medicinal Chemistry
      • Screening and Profiling Service
      • Proprietary Library Development
      • Analytical Services
    • PHARMARON INC.
      • HISTORY AND LINES OF BUSINESS
      • Drug Discovery Services
      • Chemistry
      • Biology
      • DMPK
      • In Vivo Pharmacology
    • RICERCA BIOSCIENCES, LLC
      • HISTORY AND LINES OF BUSINESS
      • Drug Discovery Services
      • Discovery Pharmacology
      • Chemical Development
      • Drug Safety and Metabolism
    • SCYNEXIS, INC.
      • HISTORY AND LINES BUSINESS
      • Drug Discovery Services
      • Medicinal Chemistry
      • Discovery Biology
      • Custom Synthesis
      • High Throughput Purification & Analysis
      • ADMET & Bioanalytical Services
      • Bioanalytical Capabilities
      • Data Management And Collaboration
    • SELCIA LIMITED
      • HISTORY AND LINES OF BUSINESS
      • Drug Delivery Services
      • Hit Identification
      • Lead Optimization
      • Development Candidates
    • SELVITA S.A.
      • HISTORY AND LINES OF BUSINESS
      • Drug Discovery Services
    • SHANGHAI CHEMPARTNER CO.,LTD.
      • HISTORY AND LINES OF BUSINESS
      • Drug Discovery Services
      • Chemistry
      • CMC Development
      • Biology
      • Cell Biology and Pharmacology
      • DMPK & Toxicology
      • Biologics R&D
      • Integrated Drug Discovery Services
    • SHANGHAI Medicilon Inc.
      • HISTORY AND LINES OF BUSINESS
      • Drug Discovery Services
      • Biology
      • Discovery Biology Services
      • Gene-to-Structure
      • Chemistry
      • Preclinical
      • Pharmacokinetics Services
      • Pharmacology Services
      • Toxicology Services
      • Integrated Services
    • SYGNATURE DISCOVERY LIMITED
      • HISTORY AND LINES OF BUSINESS
      • Drug Discovery Services
      • Medicinal Chemistry
      • Computational Chemistry
      • Arrays and libraries
      • Fragment-based drug discovery:fragment Library and NMR
      • Process and scale-up chemistry
      • Bioscience (in vitro biology and screening)
      • ADME/Tox (Cyprotex Discovery)
    • WUXIAPPTEC CO. LTD.
      • HISTORY AND LINES OF BUSINESS
      • Drug Discovery Services
      • Synthetic Chemistry and Library
      • Medicinal Chemistry Services
      • Analytical Chemistry
      • Discovery Biological
      • Pharmacology
      • Safety Pharmacology
      • Drug Metabolism and Pharmacokinetics
      • Bioanalytical
      • Financial Information

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