The Small Molecule Drug Discovery sector is projected to expand from approximately US$ 50.93 billion in 2023 to an estimated US$ 106.77 billion by 2031, reflecting a compound annual growth rate (CAGR) of 9.7% during the period from 2023 to 2031. This growth is largely driven by a thriving pharmaceutical industry characterized by increased research and development (R&D) activities and a rising trend towards outsourcing. However, the high costs associated with drug development pose a significant challenge to market expansion. Additionally, the increasing integration of artificial intelligence in drug discovery processes is anticipated to introduce new trends in the small molecule drug discovery landscape in the near future.
In 2023, North America held a substantial share of the global small molecule drug discovery market. This market is divided into segments including the United States, Canada, and Mexico. Factors such as heightened R&D efforts by pharmaceutical and biotechnology firms aimed at discovering innovative drugs, increased investments in the pharmaceutical sector, and a high incidence of cancer are expected to propel the growth of the small molecule drug discovery market in North America. The United States, being one of the most advanced nations in the region, is particularly influenced by the rising rates of chronic diseases, including cardiovascular conditions and cancer. According to the American Cancer Society, around 2 million new cancer cases are projected for 2024, with approximately 611,000 expected fatalities in the US. This alarming trend has led to significant investments in R&D for new drug molecules within the US healthcare system. Furthermore, a robust pipeline of drugs and approvals in therapeutic areas for small molecule drugs is likely to further stimulate the regional market. The increasing awareness of advanced therapeutic options is also expected to contribute to the growth of the small molecule drug discovery market throughout the forecast period.
The growth of the small molecule drug discovery market in Canada can be attributed to various government initiatives, the rising prevalence of cancer, and strategic actions taken by leading industry players. The availability of innovative treatment options allows Canadians to manage a wide array of medical conditions effectively. The ongoing adoption of small molecule therapies within the Canadian healthcare system is likely to sustain market growth in the years ahead.
According to the Government of Canada, the nation ranks ninth globally in terms of pharmaceutical market sales value. This impressive ranking is supported by innovative pharmaceutical companies, drug manufacturers, contract research organizations (CROs), and numerous small- to medium-sized biopharmaceutical firms. As reported by Statistics Canada in 2020, there were 6,280 companies operating in the country, with the pharmaceutical sector representing 41% and the R&D sector accounting for 31% of the overall healthcare industry. Consequently, the rapidly expanding pharmaceutical and biopharmaceutical sectors are generating substantial demand for small molecule drug discovery in Canada.
Increasing Pipeline of Small Molecule Drugs to Create Future Market Opportunities
The pharmaceutical landscape is in a constant state of evolution, necessitating the development of new and innovative therapeutic strategies for various chronic conditions. Over the past five years, there has been a notable increase in the approval of small molecule drugs due to their efficacy across a broad spectrum of medical indications. The pipeline for small molecule drug candidates is expanding to encompass a variety of therapeutic applications, including oncology, hypertension, diabetes, and inflammatory diseases. Numerous pharmaceutical companies, both large and small, are actively engaged in the development of various small-molecule drugs.
This expanding pipeline of small molecule drugs is consequently driving drug discovery initiatives throughout the industry.
| Compound Name | Compound Type | Company Name | Clinical Phase | Indication |
| PF-06821497 | Small Molecule | Pfizer Inc. | Phase 1 | Cancer |
| PF-06873600 | Small Molecule | Pfizer Inc. | Phase 1 | Breast Cancer Metastatic |
| PF-06939999 | Small Molecule | Pfizer Inc. | Phase 1 | Solid Tumors |
| PF-06952229 | Small Molecule | Pfizer Inc. | Phase 1 | Cancer |
| PF-06826647 | Small Molecule | Pfizer Inc. | Phase 1 | Ulcerative Colitis |
| PF-07038124 | Small Molecule | Pfizer Inc. | Phase 1 | Atopic Dermatitis |
| PF-06842874 | Small Molecule | Pfizer Inc. | Phase 1 | Pulmonary Arterial Hypertension |
| PF-06865571 | Small Molecule | Pfizer Inc. | Phase 1 | Non-alcoholic Steatohepatitis (NASH) with Liver Fibrosis |
| PF-06882961 | Small Molecule | Pfizer Inc. | Phase 1 | Diabetes Mellitus-Type 2, Obesity |
| PF-07081532 | Small Molecule | Pfizer Inc. | Phase 1 | Diabetes Mellitus-Type 2, Obesity |
| R835 | Small Molecule | Rigel Pharmaceuticals, Inc. | Phase 1 | Inflammatory Disorders |
| R552 | Small Molecule | Rigel Pharmaceuticals, Inc. | Phase 1 | Inflammatory Disorders |
| SY-1425 | Small Molecule | Syros Pharmaceuticals, Inc. | Phase 2 | AML |
Source: Company News and The Insight Partner Analysis
Small Molecule Drug Discovery Market: Competitive Landscape and Key Developments
Key players in the small molecule drug discovery market include Bristol-Myers Squibb Co, Merck KGaA, GSK Plc, Boehringer Ingelheim International GmbH, Thermo Fisher Scientific Inc, ICON Plc, Danaher Corp, Charles River Laboratories International Inc, Oncodesign Services, and Revvity Inc.
The report on the small molecule drug discovery market references primary and secondary sources such as the US Food and Drug Administration, the Centers for Disease Control and Prevention (CDC), and the Centre for the Study of Drug Development.