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Press Release

Outsourced Drug Discovery Market Boosted by Gap in Pipelines: Report

Kalorama Information
Posted on: 22 Mar 18
Outsourced Drug Discovery Market Boosted by Gap in Pipelines: Report

PR Newswire

ROCKVILLE, Md., March 22, 2018

ROCKVILLE, Md., March 22, 2018 /PRNewswire/ -- The rate of new drug development has stagnated despite large annual allocations in R&D spending.  Moreover, profit margins have decreased because the NMEs that do make it to market lack the market size/revenue of their predecessors, which portend the end of the blockbuster era.   In response, outsourcing of discovery activities has increased.  That's a trend that Kalorama Information, a New York City-based developer of pharmaceuticals, has kept track of since 2002.  The firm just released their 8th Edition of Outsourcing in Drug Discovery Market.

"Many companies reduced their workforces, as well as took other money-saving measures, to help stabilize profits in the aftermath of patent losses," said Bruce Carlson, Publisher of Kalorama Information.  "Much of the 'saved' revenue was allocated to R&D."

At the same though Kalorama said that patents on a significant number of blockbuster drugs have expired. Between 2012 and 2016, branded pharmaceuticals with an estimated $117.2 billion in U.S. sales went off patent.  That means there is a gap between product pipeline need and internal resources to handle research activities. 

"How do you fill that gap?" Carlson asked.  "With outsourcing.  So there's been an increased market.  And more than just the pipeline gap, there's also expertise with outsourcers, technologies that aren't in-house at some smaller firms."

The market for outsourced drug discovery services is robust with an optimistic outlook going forward. The global market is estimated to reach $27.8 billion in 2018 up 17% from $24.2 billion in 2017.    

The firm's latest analysis is sourced from a detailed review of company publications and investor calls, as well as interviews with industry.  Kalorama's report profiles scores of companies.  The report can be found at the firm's website:

About Kalorama Information

Kalorama Information, a division of, supplies the latest in independent medical market research in diagnostics, biotech, pharmaceuticals, medical devices and healthcare; as well as a full range of custom research services. Reports can be purchased through Kalorama's website and are also available on and

We routinely assist the media with healthcare topics. Follow us on Twitter, LinkedIn and our blog on our company website:   

Press Contact:
Bruce Carlson
212 807 2262

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SOURCE Kalorama Information

PR Newswire

Last updated on: 22/03/2018

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