The oncology drug discovery market is rapidly evolving in response to the rising prevalence of cancer and the growing demand for personalized therapies. Advances in genomics, biotechnology, and artificial intelligence are transforming the way cancer treatments are developed, making drug discovery faster, more targeted, and more efficient.

Market Overview

In 2024, North America led the global oncology drug discovery market, supported by robust research infrastructure and strong industry-academia collaborations. However, the Asia-Pacific region is poised to witness the highest compound annual growth rate (CAGR) in the forecast period due to expanding healthcare investments, growing patient populations, and emerging biotech hubs.

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Among therapy types, targeted therapy held the largest revenue share in 2024, as it offers specific molecular targeting and improved outcomes over conventional treatments. Immunotherapy, on the other hand, is expected to experience the fastest growth, fueled by breakthroughs in CAR-T cells, immune checkpoint inhibitors, and cancer vaccines.

Segmental Insights

Targeted Therapy Leads, Immunotherapy Gaining Pace

Targeted therapies have become a central focus for pharmaceutical companies, accounting for nearly 48% of all U.S. FDA approvals in 2023. These treatments offer a precise mechanism of action, reducing side effects and increasing efficacy, which makes them particularly valuable in long-term cancer management.

Immunotherapies are rising quickly due to their ability to activate the body’s immune system to fight cancer more naturally and sustainably. Clinical successes and increasing patient preference for therapies with fewer side effects are driving this segment forward.

Lung and Breast Cancer Segments in Focus

Lung cancer remained the dominant cancer type in 2024 due to its high global incidence, complex subtypes, and unmet therapeutic needs. Environmental factors, such as air pollution and smoking, continue to contribute to rising cases, prompting significant R&D investments.

Breast cancer is projected to grow at the fastest rate, particularly due to increasing diagnosis among younger women and aggressive subtypes like triple-negative breast cancer. The demand for innovative, personalized therapies in this space is intensifying, driven by collaborations between biotech companies and academic institutions.

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Drug Discovery and Clinical Trials

The early-stage drug discovery segment held a dominant position in 2024. With cancer’s increasing diversity and drug resistance, pharmaceutical companies are investing heavily in identifying first-in-class molecules. This segment also benefits from collaboration with universities and research labs to explore novel compounds before transitioning to costly clinical phases.

Clinical trials (Phases I to III) are expected to grow rapidly, especially with the rise of combination therapies and adaptive trial designs that require robust, flexible frameworks for safety and efficacy validation.

Small-Molecule Drugs Dominate

Small-molecule drugs led the market in 2024 due to their ability to effectively target intracellular pathways and their suitability for oral administration. Their ease of development and compatibility with high-throughput screening methods make them a preferred choice for researchers and manufacturers.

Innovation and Its Role in Shaping the Market

Innovation is revolutionizing oncology drug discovery, making the process faster, more precise, and cost-effective. Key enablers include:

• Genomics and Precision Medicine: Advanced genome sequencing helps identify cancer-specific mutations, allowing therapies to be tailored to individual tumor profiles.

• Artificial Intelligence: AI plays a crucial role in target identification, compound optimization, and clinical trial design. It accelerates timelines and enhances predictive accuracy for drug responses.

• High-Throughput Screening: Technologies enabling rapid screening of thousands of compounds have significantly reduced the early-stage bottleneck in drug development.

For example, in June 2025, the FDA approved Datroway, an antibody-drug conjugate targeting TROP2 for EGFR-mutated lung cancer, showcasing how genomics is driving new therapy classes.

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Recent Industry Developments

The market continues to witness significant activity from major industry players:

• AstraZeneca launched a precision therapy in November 2024 targeting advanced prostate cancer, reinforcing its commitment to personalized medicine.

• AbbVie Inc. acquired ImmunoGen in February 2024 to expand its capabilities in antibody-drug conjugates.

• Merck & Co. gained FDA approval in October 2024 for a combination therapy using Keytruda in triple-negative breast cancer.

• Roche reported positive results for tiragolumab in Phase III trials, showing improved survival in non-small-cell lung cancer patients.

These strategic moves underscore the industry’s focus on developing cutting-edge, high-efficacy therapies tailored to specific cancer types.

Regional Highlights

North America: Innovation Hub

North America, particularly the United States, continues to lead the global market due to its:

• High volume of clinical trials

• Advanced healthcare infrastructure

• Strong support from regulatory agencies

• Concentrated collaboration among pharma, biotech, and academic institutions

Regulatory initiatives like Breakthrough Therapy and Accelerated Approval pathways are helping to fast-track promising oncology drugs.

Asia-Pacific: Emerging Growth Engine

Asia-Pacific is projected to register the fastest CAGR during the forecast period. Rising cancer cases, increasing awareness, and rapid development of biotech infrastructure are contributing to regional growth. Governments in countries like China, India, and Japan are also investing heavily in precision medicine and cancer research.

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