Preclinical Assets Market is primed for Growth through Strategic Partnerships and Acquisitions
The preclinical assets market involves promising drug candidates that are still in the discovery and preclinical trial stages of development. These assets demonstrate potential therapeutic benefits but have yet to be validated in clinical studies. They offer pharmaceutical companies opportunities to gain access to innovative new drug targets and mechanisms of action. Evaluating and acquiring preclinical assets allows companies to strengthen their pipelines and diversify their portfolios in a cost-effective manner compared to internal research and development activities.
Global preclinical assets market size is valued at US$ 5,250.2 million in 2022 and is expected to witness a CAGR of 7.5% over the forecast period (2022 – 2030).
Key Takeaways
Key players: Key players operating in the preclinical assets market include Pfizer, Johnson & Johnson, Merck & Co., GlaxoSmithKline, and AstraZeneca. They strategically pursue partnerships and collaborations to source promising early-stage programs.
Growing demand: There is growing demand from big pharmaceutical companies to replenish pipelines as many drugs lose patent protection. Preclinical Assets Market Demand provide an attractive solution to access innovation without substantial investment in internal R&D.
Global expansion: Companies are also expanding searches for preclinical assets globally in geographies like China, India, and South Korea where governments actively support drug development. Strategic deals help enhance the geographical reach of pipelines.
Market Key Trends
One of the Preclinical Assets Market Size and Trends is the rising number of partnerships and acquisitions. Large pharmaceutical firms increasingly rely on strategic transactions to boost pipelines rather than focus only on in-house discovery efforts. Deal activity allows companies to selectively acquire the most clinically relevant preclinical programs based on disease priorities and risk-reward assessments. This external innovation sourcing approach is expected to further intensify as drug development grows more complex and costly.
Porter’s Analysis
Threat of new entrants: Low due to heavy R&D cost required and IP protection given to innovators. Bargaining power of buyers: Moderate bargaining power due to purchasing decisions made by large pharma/biotech companies. Bargaining power of suppliers: Suppliers enjoy some power due to specialized products and services required. Threat of new substitutes: Low threat as preclinical assets are unique and targeting certain disease conditions requiring extensive clinical validation. Competitive rivalry: Intense competition between pharma/CRO players to acquire new preclinical assets.
Geographical Regions
North America accounts for the largest share of the global preclinical assets market, primarily due to availability of funding and presence of major players in the US. Significant research is also carried out by biotechnology companies and academic & research institutions in the region.
Asia Pacific is poised to witness the highest growth during the forecast period majorly due to increasing R&D activities by pharma companies to expand their pipelines. Growing pharma industry, favorable regulations, and low-cost operations also attract players to outsource preclinical research to Asia Pacific countries like China and India.
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