Drug repurposing market projected to hit $52.8 billion by 2035

Market Research Future expects the global drug repurposing market to grow from $40.4 billion in 2026 to $52.8 billion by 2035, driven by patent expirations, AI-based candidate discovery and regulatory pathways that reward faster development. The report says North America leads the market now, while Asia-Pacific is the fastest-growing region through 2035.

Why it matters: - Drug repurposing is becoming a core pharmaceutical R&D strategy as companies look to extend revenue from existing assets instead of starting from scratch. - The market’s growth matters because patent cliffs, faster regulatory routes and AI tools are lowering the time and cost needed to bring new indications to market. - The shift could help drugmakers preserve revenue, expand access in rare diseases and speed development for areas with high unmet need.

What happened: - Market Research Future said the global drug repurposing market will rise from $40.40 billion in 2026 to $52.80 billion by 2035, implying a 3.1% CAGR. - The firm estimated the market at $39.20 billion in 2025. - The report identified patent-cliff pressure, AI-driven drug repositioning and regulatory support as the main growth drivers. - The report also flagged stronger government and research support from the NIH, FDA and ICH. - A free sample is available here.

The details: - An estimated $197 billion in branded-drug revenue faces generic erosion by 2031, pushing drugmakers toward lifecycle-extension strategies. - The FDA’s 505(b)(2) route and the EMA’s hybrid application procedure can shorten approval timelines for repurposed therapies. - AI-native platforms are reducing candidate identification time from 3-5 years to under 12 months and cutting preclinical costs by an estimated 40%-60%. - The NIH’s NCATS program has committed more than $750 million in cumulative funding for translational science initiatives that support repurposing. - The FDA’s Real-World Evidence Program can use electronic health records and claims data to support supplemental new drug applications for approved drugs. - The ICH is working on data-sharing standards for repurposed drugs that could reduce duplicative regulatory submissions by up to 50% by 2035. - Oncology led the market with a 40.1% revenue share in 2024. - Rare and orphan diseases are the fastest-growing therapeutic area, with a projected 15.9% CAGR from 2026 to 2035. - Small molecules held a 69.4% share in 2024. - Peptides and biologics are the fastest-growing molecule type, at a projected 14.1% CAGR. - Pharmaceutical and biotechnology companies accounted for about 59.1% of revenue in 2024. - Contract research organizations are the fastest-growing end users, with a projected 13.4% CAGR.

Between the lines: - The market is moving away from a purely experimental repurposing model and toward a more industrialized system built on data, regulation and portfolio management. - The report suggests AI will do more than accelerate discovery; it may reshape which companies can compete by favoring firms with proprietary datasets and computational infrastructure. - Rare-disease and orphan-drug incentives make repurposing especially attractive where patient populations are small but exclusivity can be longer. - The competitive landscape remains fragmented, with the top five players holding an estimated 28%-35% of global revenue. - The report describes the market as medium concentration, with a Herfindahl-Hirschman Index below 1,200. - Novartis established a Drug Repurposing Center of Excellence in Basel in January 2025 and committed $350 million over five years. - Pfizer maintained a broad pipeline of repurposed candidates in 2024-2025. - Recursion Pharmaceuticals expanded its AI platform in March 2025 to screen more than 40 billion biological relationships. - BenevolentAI said its knowledge-graph platform identified baricitinib for COVID-19 treatment in under 48 hours. - Teva Pharmaceutical partnered with a South Korean CRO in June 2024 on studies for three CNS compounds in Asia-Pacific markets. - AbbVie is investing in immunology and oncology repurposing for its autoimmune portfolio.

What’s next: - By 2030, the report expects about 60% of repurposing candidates to come from AI-driven platforms integrating genomic, proteomic and clinical data. - Regulatory convergence could speed launches, with ICH standardization and possible FDA-EMA mutual-recognition discussions reducing delays across markets. - Asia-Pacific is expected to keep gaining share as China, India, Japan and South Korea expand expedited review and lower-cost trial infrastructure. - Europe and North America are likely to remain major markets, but the report says growth will increasingly come from regions with faster regulatory pathways and lower development costs.

The bottom line: - Drug repurposing is moving from a niche strategy to a mainstream pharmaceutical growth engine, and the companies that combine data, regulation and lifecycle management are likely to gain the most.