Fragment-based Drug Discovery Market

Fragment-based Drug Discovery Market Summary

The global fragment-based drug discovery (FBDD) market is gaining strong momentum as pharmaceutical and biotechnology companies intensify efforts to rebuild drug pipelines and address rising incidences of cancer, immunological disorders, metabolic diseases, and CNS conditions.

The global Fragment-based Drug Discovery Market highlights

• Market Value (2024) US$ 1.1 Bn – Solid foundation supported by structural biology advancements.
• Forecast Period 2025–2034 – Growth driven by demand for novel chemical starting points and difficult target classes.
• Expected CAGR 10.6% – Strong expansion supported by AI, cryo-EM, and biophysical innovations.
• Forecast Value (2034) US$ 3.2 Bn – Significant scale-up fueled by adoption of FBDD platforms across global R&D.

Expert Insights and Strategic Perspective

The fragment-based drug discovery market is expanding rapidly as biopharmaceutical companies face pipeline pressure from patent expiries, rising development costs, and a surge in complex therapeutic areas such as oncology, immunology, and CNS diseases. FBDD offers a unique advantage by providing high-quality, novel starting points capable of binding challenging targets, including allosteric pockets and protein–protein interactions.

Advanced structural biology technologies—including high-field NMR, synchrotron X-ray crystallography, cryo-electron microscopy (cryo-EM), and native mass spectrometry—have become widely accessible and cost-effective. Their integration into discovery workflows allows faster hit identification, confirmation, and elaboration, significantly improving the probability of generating clinically viable drug candidates.

The ecosystem around FBDD is also transforming. CROs specializing in biophysics, structural determination, and medicinal chemistry are lowering entry barriers for small and mid-sized biotech firms. Simultaneously, data-driven discovery models leverage AI, machine learning, and enterprise-level data lakes to merge structural, SAR, and biophysical datasets—enhancing decision-making and accelerating design–make–test cycles.

Innovations including covalent fragment libraries, electrophile-optimized warheads, water thermodynamics models, free-energy perturbation (FEP), microcrystal X-ray, serial crystallography, and fragment-based degrader or molecular glue design are expanding the scope of FBDD. Partnerships are shifting toward platform-driven collaborations, co-development models, and risk-sharing agreements.

Overall, fragment-based drug discovery is emerging as a strategic priority for organizations seeking first-in-class and best-in-class therapeutics across diverse diseases.

Market Overview

Fragment-based drug discovery (FBDD) involves screening low-molecular-weight fragments that bind efficiently to biological targets, even with weak affinities, and optimizing them into potent and selective drug candidates. FBDD offers a highly efficient alternative to conventional high-throughput screening by navigating chemical space more effectively.

Fragments, being smaller, allow medicinal chemists to grow, merge, or link them into optimized molecules with improved pharmacokinetic, pharmacodynamic, and ADME profiles. Structural methods such as NMR, crystallography, and cryo-EM play an essential role in visualizing fragment–protein interactions and guiding rational design.

Computational modeling, AI-assisted scoring, biophysical screening, and advanced medicinal chemistry workflows complement FBDD, making it one of the most potent approaches to discovering novel mechanisms, especially for targets once considered undruggable.

Key Market Drivers

High Efficiency and Versatility Expected to Accelerate Market Growth

Fragment-based drug discovery delivers substantial efficiency benefits by relying on smaller, structurally diverse fragment libraries rather than millions of larger compounds. This reduces screening complexity, operational costs, and timelines.

Through biophysical techniques such as NMR, X-ray crystallography, cryo-EM, SPR, MST, and ITC, researchers can detect even weak fragment binders with high sensitivity. These methods offer robust structural insights, enabling rapid optimization into potent lead molecules.

The flexibility of fragments allows expansion in multiple directions, supporting creative medicinal chemistry and enabling novel mechanism drug discovery. This makes FBDD highly attractive to pharmaceutical companies aiming to diversify pipelines and accelerate innovation.

Innovations in Fragment Libraries Fueling Market Expansion

Modern fragment libraries have evolved significantly, shifting from simple chemical collections to highly sophisticated portfolios designed for diversity, solubility, and activity against difficult targets.

Key advancements include

• Covalent and electrophile-focused fragment libraries for high specificity.
• Fragment libraries targeting RNA structures.
• Natural product-inspired and 3D-shaped fragment collections.
• AI-designed virtual libraries predicting binding performance and hit probability.

These libraries enhance hit discovery rates, reduce early-stage attrition, and help generate high-value candidates across emerging therapeutic modalities.

Biophysical Techniques Leading Global Fragment-based Drug Discovery Market

Biophysical techniques dominate the FBDD market due to their unparalleled sensitivity in detecting weak fragment interactions. Tools such as NMR, X-ray crystallography, ITC, SPR, and mass spectrometry facilitate accurate hit identification, structural characterization, and fast optimization cycles.

Their reproducibility, robustness, and ability to handle complex targets—including membrane proteins and multiprotein complexes—solidify their leadership in global FBDD workflows.

Regional Outlook

Global Fragment-based Drug Discovery Market – Regional Analysis

North America led the global market in 2024 and is anticipated to maintain dominance through 2034. The region benefits from a strong biotechnology ecosystem, leading academic institutions, advanced structural biology facilities, and robust funding from public and private sources.

High adoption of cryo-EM, high-field NMR, and computational drug discovery platforms, along with regulatory encouragement for precision medicine, supports continued growth. The presence of world-class CROs and established pharmaceutical giants further reinforces North America’s leadership in fragment-based drug discovery.

Competitive Landscape

Companies operating in the FBDD market are focusing on enhancing fragment libraries, expanding capabilities in structural biology, integrating computational tools, and forming strategic collaborations. End-to-end FBDD platform development, risk-sharing discovery partnerships, and IP generation around screening technologies are common competitive strategies.

Prominent Companies in the Global Market

• Thermo Fisher Scientific Inc.
• Astex Pharmaceuticals
• Domainex
• Beactica Therapeutics AB
• Charles River Laboratories
• Evotec International GmbH
• Sprint Bioscience
• Structure Based Design, Inc.
• Sygnature Discovery Limited
• Malvern Panalytical Ltd.
• Vernalis (R&D) Limited (HitGen Inc.)
• SARomics Biostructures
• WuXi AppTec
• Schrödinger, Inc.
• ZOBIO BV

Key Developments in the Market

• April 2025 Enamine and Pohang Accelerator Laboratory (PAL) signed an MoU to accelerate collaborative fragment-based drug discovery and hit-to-lead optimization using advanced screening technologies and integrated fast-track chemical development capabilities.

Fragment-based Drug Discovery Market Snapshot

Segmentation Overview

By Product Type

• Fragment Libraries
• Screening Technologies
• Software Tools

By Techniques

• Biophysical Techniques
• NMR Spectroscopy
• X-Ray Crystallography
• Mass Spectrometry
• Capillary Electrophoresis
• Others (Fluorescence Polarization, SPR, etc.)
• Non-biophysical Techniques

By Application

• Oncology
• Central Nervous System (CNS) Disorders
• Infectious Diseases
• Cardiovascular Diseases
• Metabolic Disorders
• Others (Autoimmune & Inflammatory Diseases)

By End User

• Contract Research Organizations (CROs)
• Pharmaceutical & Biotechnology Companies
• Academic & Research Institutions

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa