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Computational Biology Market - New Market Research Report Published by Transparency Market Research

Albany, New York (PRWEB) May 14, 2013

Computational biology uses sequencing, databases and supercomputers for analysis and algorithm formation to predict the molecules that can be taken for drug identification and lead optimization. Setbacks in drug discovery with absence of potential blockbusters in the market coupled with cost containment issues faced by major drug manufacturers has compelled the major players to shift their focus to newer methods of drug discovery in order to help accelerate the drug development process and bring down R&D expenditure.

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The drug discovery market is the fastest growing segment and is anticipated to grow at a CAGR of more than 25% from 2012 to 2018. The use of computational biology for drug discovery now offers manufacturers a method to reduce R&D expenditure and to reduce chances of late stage failure of drug candidates. Computational software and simulation tools are being used in various stages of drug discovery to minimize the future risks of drug failure in later stages of drug development.

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Geographically, North America constituted the largest market in the year 2011. This has been partly due to an encouraging environment for this field created by the US FDA and intense R&D efforts in this region by major pharmaceutical players. The U.S. Federal Government has been supportive through provision of funds for R&D; additionally, academic centres use modelling and simulation for drug discovery. However, Asia is expected to be the fastest growing region due to the emergence of many small regional players as well as lower operating costs as compared to the developed markets.

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The global computational biology market is predominantly ruled by major players namely Schrödinger, Accelrys, Certara, Compugen, Simulation Plus, Entelos and others. The market is oligopolistic and these major players account for almost 80% of the market share.

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