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The neurology segment in the small molecule innovators contract development and manufacturing organization (CDMO) market has been experiencing notable growth owing to growing awareness and understanding of neurological disorders, leading to an increased emphasis on the development of drugs targeting conditions like Alzheimer's, Parkinson's, epilepsy, and various other neurodegenerative diseases.

For instance, in July 2023, Biogen announced its small molecules pipeline drug Zuranolone (GABAA PAM) – Major depressive disorder (MDD) in phase III trials and BIIB131 (plasminogen activator) – Acute ischemic stroke in Phase II Trials. Similarly, UCB SA also reported that it has 4 small molecules of innovative drugs in the pipeline for neurology diseases, which include fenfluramine (5-HT agonist), doxecitine and doxribtimine (MT1621, nucleoside therapy), minzasolmin (α-syn-misfolding inhibitor), and STACCATO alprazolam (benzodiazepine) in various phase of development. Such a huge pipeline for small molecule innovator drugs is expected to create a huge demand for CDMO for process development, analytical testing, and manufacturing, which is expected to contribute to segment growth between 2024 and 2029.

An increase in CNS diseases, like Parkinson's disease, amyotrophic lateral sclerosis (ALS), Huntington chorea, and Alzheimer's disease, facilitates the demand for CRO services since the drug development of these diseases requires various clinical trial support, regulatory recommendations, etc. For instance, according to data published by Alzheimer’s Disease Facts and Figures Annual Report 2023, over 6 million Americans suffered from Alzheimer's disease, a figure predicted to climb to almost 13 million within three decades.

Additionally, as per the above source, in 2023, the United States spent USD 345 billion in treating and managing Alzheimer’s and other dementias. By 2050, these costs could rise to nearly USD 1 trillion. Thus, the high burden of the disease is creating demand for innovative and effective therapies, driving the growth of the studied market.

Furthermore, the data updated by the World Health Organization in March 2023 showed that globally, about 55 million people suffer from dementia; every year, there are nearly 10 million new cases of dementia filed. Additionally, Atlas of Multiple Sclerosis data updated in September 2023 showed that 2.9 million people live with multiple sclerosis in 2023 worldwide and 10 million with Parkinson's disease, as per the data published by the Parkinson's Foundation. These increasing burdens of CNS disorders are anticipated to drive the demand for central nervous system therapeutics and significant research activities between 2024 and 2029.

Pharmaceutical and biotechnology corporations are augmenting their focus on service expansion. For instance, in September 2023, Cellectricon expanded its neuroscience contract research portfolio with a new Neuroplasticity Services launched module set to accelerate drug discovery in therapeutic areas such as neuropsychiatry, epilepsy, and neurodegeneration.

Hence, increasing research and development activities, the presence of a strong pipeline, and strategic activities by the market players are expected to contribute to market growth between 2024 and 2029.