As the complexity of drug development accelerates and therapeutic modalities diversify, outsourcing has become a strategic imperative. Now comprising ~50% of global pharma R&D spend, outsourced services—spanning early discovery through commercialization—are on a sharp growth trajectory. The broader Pharma Services & Software market, currently estimated at $300B, is projected to grow at an 8.4% CAGR to over $450B by 2030, driven by strong tailwinds including AI adoption, decentralized trials, biologics and gene therapies, and increased regulatory scrutiny.
With headwinds in the broader tech ecosystem, the sector remains resilient. M&A volume decreased 8% in 2024, yet private equity and strategic buyers increasingly target differentiated platforms. Funding volumes also rose in 2024, climbing to $42B, as late-stage investments buoyed headline numbers despite ongoing difficulties for early-stage ventures. Meanwhile, public company performance is bifurcated, with preclinical and drug discovery players trading at a healthy 6.7x revenue, outpacing clinical CROs and commercialization firms.
Key trends shaping the sector include: AI-first discovery platforms streamlining preclinical workflows and accelerating molecule development timelines; eClinical and trial technologies enabling decentralized trials, faster recruitment, and real-time data visibility; Specialized CDMOs and digital manufacturing platforms reshaping supply chains amid rising biologics demand; Patient-centric commercialization tools improving launch execution and omnichannel engagement; Regulatory, market access, and pharmacovigilance software increasingly vital for global compliance and pricing optimization.
With over 190 drugs facing patent expiry by 2030 and biopharma increasingly turning to digital infrastructure to navigate complexity and reduce time to market, the convergence of technology and pharma services is only accelerating.
AGC Partners has built deep expertise across this evolving landscape, with multiple HCIT and life sciences software transactions closed in the past 18 months. We remain deeply engaged with the most active buyers, investors, and innovators in the space.
© In the U.S., America’s Growth Capital, LLC dba AGC Partners, member FINRA/SIPC. In Europe, America’s Growth Capital Europe, LLP (Appointed Representative Alternatives St. James, LLP which is authorized and regulated by the Financial Conduct Authority). America’s Growth Capital Europe, LLP is a Limited Liability Partnership incorporated in England and Wales (OC368580). Its registered address is 6th Floor, 9 Appold Street, London EC2A 2AP. The testimonials contained herein may not be representative of the experience of other customers or clients. Testimonials are no guarantee of future performance or success. Deals marked with an “*” are non-AGC deals.
