Growth of the Pharma ADMET Testing Market

The pharmaceutical ADMET testing market is projected to expand significantly, increasing from US$ 6,783.06 million in 2021 to US$ 13,578.62 million by 2028. This growth represents a compound annual growth rate (CAGR) of 10.5% from 2022 to 2028.

Market Trends and Growth Drivers

This report outlines the prevailing trends and factors propelling market growth. A primary driver is the high incidence of late-stage drug failures, coupled with a rising number of product approvals and launches. Furthermore, the emergence of innovative technologies is anticipated to be a significant trend throughout the forecast period. However, the substantial costs associated with ADME testing studies pose a challenge to market expansion.

Importance of ADMET Testing

ADMET, which stands for absorption, distribution, metabolism, excretion, and toxicology, is essential in drug discovery and development. It helps in understanding the pharmacokinetic and pharmacodynamic properties of drugs, thereby reducing the likelihood of failure during the drug discovery phase. By implementing ADMET testing, pharmaceutical companies can decrease the time required for drug discovery, mitigate testing complications, and lower development costs.

The expenses incurred before a drug receives approval can reach as high as US$ 2.56 billion, escalating to US$ 2.87 billion post-approval. A study titled "Why 90% of Clinical Drug Development Fails and How to Improve It" (2022) reveals that a staggering 90% of clinical drug development efforts fail, despite the application of various strategies. Once in clinical trials, 9 out of 10 drug candidates do not succeed through phases I, II, and III, as well as the approval process. Notably, drug candidates that fail in preclinical stages are excluded from this failure rate, indicating that the actual failure rate could exceed 90% when considering preclinical failures.

Analysis of clinical trial data from 2010 to 2017 identifies four primary reasons for trial failures: lack of clinical effectiveness (40-50%), uncontrollable toxicity (30%), poor drug-like characteristics (10-15%), and ineffective strategic planning (10%).

Challenges in Drug Development

The process of developing new drugs is both resource-intensive and time-consuming, particularly in later clinical stages, which incur substantial costs. The journey from discovery to clinical approval typically spans over 10-15 years and costs an average of US$ 1-2 billion. To reduce attrition rates in drug research and development, it is vital to assess and optimize the ADMET properties of drugs early in the process. Recognizing the importance of ADMET characteristics at the earliest stages can significantly lower failure rates during clinical trials.

In vitro and in vivo evaluation techniques have matured in preclinical applications, while in silico technologies are increasingly being adopted to assess drug properties during the preclinical phase. The advancement of software and in silico models is further enhancing the execution of ADMET studies, thereby driving the demand for ADME testing in drug development.

Market Segmentation

The pharma ADMET testing market is categorized based on testing type into in vivo, in vitro, and in silico ADMET testing. In 2021, the in vivo segment commanded the largest market share, although the in vitro segment is projected to exhibit the highest CAGR from 2022 to 2028. Additionally, the market is segmented by technology into cell culture, high throughput, molecular imaging, and OMICS technology, with cell culture holding the largest share in 2021. The high throughput segment is expected to show the most significant growth during the forecast period. Applications of ADMET testing include systemic toxicity, renal toxicity, hepatotoxicity, neurotoxicity, and others, with systemic toxicity leading the market in 2021, while hepatotoxicity is anticipated to grow the fastest from 2022 to 2028.

Impact of COVID-19 on the Market

The COVID-19 pandemic had a positive effect on the pharma ADMET testing market, particularly due to an increase in research activities across the Asia-Pacific region. The demand for in vitro toxicology studies surged as researchers sought to evaluate various drugs and vaccines. The pandemic also accelerated the adoption of technology to minimize human resource utilization, leading to significant growth in the technology segment. Furthermore, governments in APAC organized initiatives and challenges to encourage researchers to develop innovative COVID-19 treatments, resulting in increased funding and research activity.

Strategic Developments in the Market

Companies in the pharma ADMET testing market are employing various organic and inorganic strategies to enhance their market presence. Organic strategies primarily involve product launches and approvals, while inorganic strategies include acquisitions, collaborations, and partnerships. These strategies enable market players to broaden their operations and strengthen their geographic reach, contributing to overall market growth. Notable developments include:

• April 2022: Charles River Laboratories announced a collaboration with NCL to advance drug discovery projects aimed at developing innovative therapeutics.


• March 2022: Promega Corporation partnered with FUJIFILM Cellular Dynamics, Inc. to enhance novel assay development for drug discovery.

Conclusion

Key organizations such as the Canada Foundation for Innovation (CFI), Australian Research Council (ARC), National Institute of Health (NIH), World Health Organization (WHO), Centers for Disease Control (CDC), and the Association of the British Pharmaceutical Industry (ABPI) have been instrumental in providing data and insights for this report on the pharma ADMET testing market.