Drug Repositioning Service Global Market Report 2025

The drug repositioning service market size has grown strongly in recent years. It will grow from $32.34 billion in 2024 to $34.2 billion in 2025 at a compound annual growth rate (CAGR) of 5.7%. The growth during the historic period is driven by high attrition rates in traditional drug development, regulatory incentives such as orphan drug designation and fast-track approvals, advancements in computational biology and AI, rising healthcare costs, and availability of extensive clinical data from existing drugs.

The drug repositioning service market size is expected to see strong growth in the next few years. It will grow to $43.26 billion in 2029 at a compound annual growth rate (CAGR) of 6.1%. The growth in the forecast period can be connected to increasing prevalence of chronic and complex diseases, continued advancements in AI and machine learning, growing focus on personalized medicine, expansion of global healthcare access, strengthening of intellectual property protections for repurposed drugs, collaborations between pharmaceutical companies and research institutions. Major trends in the forecast period include rising demand for cost-effective drug development, expansion of data-driven repurposing platforms, focus on rare and complex diseases, steady market growth across major regions, regulatory support for repositioning strategies, and increasing investment in predictive analytics and real-world data integration.

The rise in healthcare expenditures is expected to contribute to the growth of the drug repositioning service market going forward. Healthcare expenditures refer to the total funds allocated to health services, including prevention, treatment, rehabilitation, and administration. The increase in healthcare expenditures results from rising medical costs caused by technological advancements and the growing demand for healthcare services. Higher healthcare spending supports drug repositioning services by providing greater funding for clinical trials and research, which accelerates the discovery of new therapeutic uses for existing drugs. For instance, in March 2022, according to the 2021-2030 National Health Expenditure report published by the Centers for Medicare and Medicaid Services, a United States-based federal agency, national health spending is projected to increase by an average of 5.1 percent annually between 2021 and 2030, reaching nearly $6.8 trillion. Additionally, during the same period, Medicare spending is expected to rise at an annual rate of 7.2 percent, while Medicaid spending will grow at a rate of 5.6 percent. Therefore, the rise in healthcare expenditures is supporting the growth of the drug repositioning service market.

Leading players in the drug repositioning service market are emphasizing the use of artificial intelligence (AI) in drug repositioning, including computational drug repositioning systems that identify new therapeutic applications for existing drugs through AI-based analysis of scientific literature and biological data. A computational drug repositioning system is a technology-driven platform that applies artificial intelligence, machine learning, and data mining to systematically evaluate existing drugs, compounds, and biological datasets. For example, in November 2024, UBE and FRONTEO, two Japan-based companies, initiated a co-creation project that establishes a collaborative framework combining their expertise to strengthen drug repositioning initiatives. This project facilitates integration between dry research (data analysis) and wet research (biological testing), improving the process from hypothesis formulation to experimental verification. By utilizing FRONTEO’s AI-driven Drug Discovery AI Factory and KIBIT technology, the initiative efficiently uncovers previously unreported links between diseases and molecular structures.

In January 2024, Cosmos Health Inc., a US-based healthcare group, acquired the Cloudscreen platform from Cloudpharm P.C. for an undisclosed amount. Through this acquisition, Cosmos Health Inc. aims to accelerate drug repurposing initiatives by utilizing Cloudscreen’s AI platform to efficiently identify new therapeutic applications for existing drugs. Cloudpharm P.C. is a Greece-based company that provides drug repositioning services.

Major players operating in the drug repositioning service market are Recursion Pharmaceuticals Inc., Excelra, LifeArc, Cosmos Health Inc., Fios Genomics, Insilico Medicine Inc., Melior Discovery, Delta4, Acubiosys, VeriSIM Life, BioXcel Therapeutics Inc., Pharnext S.S., NuMedii, GVK Biosciences, Plex Research, Paradigm Biopharmaceuticals, BenevolentAI Limited.

North America was the largest region in the drug repositioning service market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the drug repositioning service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sudden escalation of U.S. tariffs and the consequent trade frictions in spring 2025 are severely impacting the pharmaceutical companies contend with tariffs on APIs, glass vials, and lab equipment inputs with few alternative sources. Generic drug makers, operating on razor-thin margins, are especially vulnerable, with some reducing production of low-profit medicines. Biotech firms face delays in clinical trials due to tariff-related shortages of specialized reagents. In response, the industry is expanding API production in India and Europe, increasing inventory stockpiles, and pushing for trade exemptions for essential medicines.

The drug repositioning service market research report is one of a series of new reports that provides drug repositioning service market statistics, including drug repositioning service industry global market size, regional shares, competitors with a drug repositioning service market share, detailed drug repositioning service market segments, market trends and opportunities, and any further data you may need to thrive in the drug repositioning service industry. This drug repositioning service market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Drug repositioning service involves the systematic identification of new therapeutic uses for existing drugs, enabling pharmaceutical companies to maximize the value of their current drug portfolios while reducing the risks associated with developing entirely new compounds. By leveraging existing clinical data and research, these services help streamline the drug development process, significantly decreasing the time and cost required to deliver effective treatments to patients.

The primary types of drug repositioning service are generic drugs and clinical trial failed drugs. Generic drugs are medications that contain the same active ingredients, strength, dosage form, and therapeutic effect as brand-name drugs but are generally offered at lower prices. The key therapeutic areas include oncology, neurology, infectious diseases, cardiovascular diseases, and other therapeutic areas. These services are utilized by various end users such as pharmaceutical companies, biotechnology firms, contract research organizations, academic research institutions, hospitals, and ambulatory surgical centers.

The countries covered in the drug repositioning service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The drug repositioning service market consists of revenues earned by entities by providing services such as target validation, pharmacovigilance support, formulation optimization, drug combination analysis, and post-marketing surveillance. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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