Fragment-based drug discovery (FBDD) has emerged as a powerful and efficient approach in modern pharmaceutical research, enabling scientists to identify high-quality lead compounds with improved precision and success rates. By screening low-molecular-weight chemical fragments that bind to biological targets, FBDD allows for the rational design of potent and selective drug candidates.

Driven by advances in structural biology, biophysical screening technologies, and rising demand for innovative therapeutics, the global fragment-based drug discovery industry was valued at US$ 1.1 billion in 2024. The market is expected to expand at a CAGR of 10.6% from 2025 to 2035, crossing US$ 3.2 billion by the end of 2035.

Market Overview

Fragment-based drug discovery is a structure-guided approach that involves screening small chemical fragments (typically <300 Da) against biological targets such as proteins or enzymes. These fragments bind weakly but efficiently, providing a strong foundation for optimization into high-affinity drug candidates.

Unlike traditional high-throughput screening (HTS), FBDD requires smaller compound libraries and offers higher hit rates with improved chemical diversity. As a result, it has become an increasingly preferred method in early-stage drug discovery.

FBDD is widely applied in:

• Oncology drug development
• Neurology and CNS disorders
• Infectious diseases
• Rare and orphan diseases
• Protein-protein interaction (PPI) targeting

Key Market Growth Drivers

Rising Demand for Novel and Targeted Therapies

The growing prevalence of cancer, neurological disorders, and rare diseases has intensified the need for innovative drug discovery approaches. FBDD enables the design of highly selective and potent molecules, making it particularly valuable for challenging biological targets.

Technological Advancements in Structural Biology

Breakthroughs in X-ray crystallography, nuclear magnetic resonance (NMR), cryo-electron microscopy (cryo-EM), and surface plasmon resonance (SPR) have significantly enhanced fragment screening accuracy. These tools allow researchers to visualize fragment binding at the atomic level, accelerating lead optimization.

Higher Efficiency Compared to Traditional Methods

Fragment-based approaches require fewer compounds, reduce screening costs, and improve hit-to-lead success rates. Pharmaceutical companies increasingly adopt FBDD to streamline early discovery pipelines and improve R&D productivity.

Growing Collaboration Between Pharma and Biotech

Strategic partnerships between large pharmaceutical companies, biotech firms, and academic institutions are accelerating the adoption of FBDD platforms. These collaborations combine chemical expertise, computational modeling, and disease biology knowledge.

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Market Segmentation

Product Type

• Fragment Libraries
• Screening Technologies
• Software Tools

Techniques

• Biophysical Techniques
  • NMR Spectroscopy
  • X-ray Crystallography
  • Mass Spectrometry
  • Capillary Electrophoresis
  • Others (Fluorescence Polarization, Surface Plasmon Resonance, etc.)
• Non- Biophysical Techniques

Application

• Oncology
• Central Nervous System (CNS) Disorders
• Infectious Diseases
• Cardiovascular Diseases
• Metabolic Disorders
• Others (Inflammation and Autoimmune Diseases, etc.)

Regional Insights

North America dominates the fragment-based drug discovery market due to strong pharmaceutical R&D spending, advanced research infrastructure, and the presence of leading drug developers.

Europe follows closely, supported by robust academic-industry collaborations and government funding for life sciences research.

Asia Pacific is witnessing the fastest growth, driven by expanding biotech ecosystems in China, Japan, South Korea, and India, along with increased investments in drug discovery platforms.

Competitive Landscape

• 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

Emerging Trends Shaping the Market

• AI-Driven Fragment Optimization: Integration of artificial intelligence to accelerate structure-based design
• Expansion into Protein-Protein Interactions: Targeting previously “undruggable” disease pathways
• Outsourcing to CROs: Growing use of contract research services to reduce R&D costs
• Hybrid Discovery Models: Combining FBDD with high-throughput and virtual screening

Market Challenges

Despite its advantages, FBDD faces challenges such as:

• Requirement for high-end instrumentation
• Complexity of fragment optimization
• Need for specialized expertise

However, continuous technological progress and workforce training are steadily addressing these limitations.

Frequently Asked Questions (FAQs)

1. What is fragment-based drug discovery?
Fragment-based drug discovery is a method that identifies small chemical fragments binding to biological targets and optimizes them into potent drug candidates.

2. What is the current market size of fragment-based drug discovery?
The global market was valued at US$ 1.1 billion in 2024.

3. What is the growth outlook for the FBDD market?
The market is projected to grow at a CAGR of 10.6% from 2025 to 2035, exceeding US$ 3.2 billion by 2035.

4. Why is FBDD preferred over traditional screening methods?
FBDD offers higher efficiency, reduced compound libraries, better hit rates, and improved lead quality.

5. Which industries benefit most from FBDD?
Pharmaceutical companies, biotech firms, CROs, and academic research institutions are the primary beneficiaries.