Drug Repurposing Market Size, Share & Trends Analysis Report By Method (Drug Centric, Disease Centric, Target Centric), By Application (Oncology, Autoimmune Diseases, Rare Diseases, Others), By End-User (Pharmaceutical & Biotechnology Companies, Contract Research Organizations, Academic and Research Institutions) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2025-2033

Drug Repurposing Market Size

The global drug repurposing market size was valued at USD 0.44 billion in 2024 and is projected to grow from USD 0.51 billion in 2025 to reach USD 1.07 billion by 2033, exhibiting a CAGR of 9.7% during the forecast period (2025-2033).

Drug repurposing, also known as drug repositioning, is the process of identifying new therapeutic applications for existing drugs. Instead of developing new drugs from scratch, a costly and time-consuming process, researchers explore already approved or experimental drugs that may be effective for other diseases. This approach accelerates drug development, as these drugs often have well-established safety profiles, reducing risks and regulatory hurdles.

The market is experiencing significant growth, driven by rising investments in research and development, the increasing prevalence of chronic diseases, and advancements in AI-driven drug discovery. Its cost-effectiveness, shorter development timelines, and higher success rates compared to traditional drug discovery make it an attractive approach. Regulatory incentives, such as the FDA’s 505(b)(2) approval pathway and the EMA’s adaptive licensing framework, further expedite market expansion.

Emerging technologies like computational modeling and big data analytics are also enhancing drug repurposing efficiency while growing collaborations between pharmaceutical companies, academic institutions, and AI-driven biotech firms are fostering innovation.

• For instance, in January 2025, Every Cure expanded its collaboration with Google Cloud to enhance AI-driven drug repurposing. By integrating Google Cloud's AI tools, including Gemini 2.0 large language models, into its MATRIX platform, Every Cure aims to accelerate the discovery, validation, and global distribution of treatments for diseases with limited or no therapies.

This advancement highlights the growing role of AI in drug repurposing, helping to speed up treatment discovery and expand therapeutic options for unmet medical needs. Moreover, the expansion of contract research organizations (CROs) and strategic partnerships for clinical trials is further propelling market growth. With a growing focus on rare diseases and unmet medical needs, repurposed drugs are emerging as key solutions, particularly in oncology and neurology, where new treatment options are urgently needed.

Drug Repurposing Market Trends

AI & big data integration in drug repurposing

The integration of AI and big data analytics in drug repurposing is boosting drug discovery, improving accuracy, and reducing costs. AI-driven platforms analyze vast biomedical datasets, including genomics, proteomics, and clinical trial records, to identify new therapeutic applications for existing drugs.

• For instance, in August 2024, Rejuvenate Biomed partnered with SAS to develop an AI-driven drug repurposing discovery tool on SAS Viya, a cloud-native platform. This tool will help researchers uncover hidden biological patterns, accelerating drug-disease insights and innovation.

Such growing adoption of AI and big data is transforming drug repurposing, enhancing efficiency, and boosting the global market.

Rising focus on rare & orphan diseases

The increasing focus on rare and orphan diseases is propelling the global market, as traditional drug development for these conditions is often costly and time-consuming. Regulatory incentives such as orphan drug designations, tax credits, and market exclusivity further boost pharmaceutical companies to explore repurposed drugs, accelerating treatment availability for rare diseases.

• For instance, in August 2024, Harvard Medical School researchers introduced TxGNN, the first AI model specifically developed to identify drug candidates for rare diseases. TxGNN, a graph foundation model, leverages medical knowledge graphs and neural networks to predict drug indications and contraindications across 17,080 diseases, including rare conditions.

The combination of AI-driven innovations and a rising focus on rare diseases is expanding treatment options and significantly boosting market growth.

Drug Repurposing Market Growth Factors

Growing prevalence of chronic & neurodegenerative diseases

The rising prevalence of chronic and neurodegenerative diseases, such as Alzheimer’s, Parkinson’s, and multiple sclerosis, is a major driver of the market for drug repurposing. With limited treatment options and high failure rates in novel drug development, repurposing existing drugs offers a faster, cost-effective alternative.

• For instance, in May 2024, according to an article published in the National Library of Medicine, an estimated 6.9 million people in the U.S. aged 65 and older are living with Alzheimer’s dementia, with projections reaching 13.8 million by 2060. This rising prevalence boosts the demand for drug repurposing for treatment options and addresses the growing healthcare burden.

The combination of rising patient populations and advancements in drug repurposing technologies is accelerating the development of effective, accessible, and rapidly deployable treatment solutions, fueling market growth.

Regulatory support & fast-track approvals

Regulatory agencies worldwide are increasingly supporting drug repurposing through fast-track approvals, orphan drug designations, and priority review pathways. These initiatives help accelerate the commercialization of repurposed drugs, reducing development time and costs. The FDA’s 505(b)(2) pathway and EMA’s adaptive licensing enable quicker approvals by leveraging existing safety and efficacy data.

• For instance, in April 2023, Biogen Inc. announced that the U.S. FDA granted accelerated approval for QALSODY (100 mg/15mL injection) to treat amyotrophic lateral sclerosis (ALS) in adults with a SOD1 gene mutation. The approval was based on a reduction in plasma neurofilament light chain (NfL), a marker of neurodegeneration, with continued approval contingent on confirmatory trial results.

Such fast-track approvals highlight the crucial role of regulatory support in driving the global market, ensuring faster access to life-saving treatments for patients.

Market Restraining Factors

Regulatory challenges for higher concentrations

The market faces challenges from the availability of generics and low-cost alternatives, which can limit the commercial viability of repurposed drugs. As many repurposed drugs are based on off-patent compounds, generic manufacturers can introduce cheaper alternatives, reducing market exclusivity and profitability for pharmaceutical companies.

The lack of strong intellectual property (IP) protection for repurposed drugs makes it difficult for companies to secure long-term revenue streams, discouraging investment in repurposing efforts. Moreover, pricing pressures from healthcare systems and reimbursement challenges further impact the market adoption of repurposed drugs, limiting their commercial success.

Market Opportunity

Rising government & non-profit funding initiatives

Increasing government grants, research funding, and non-profit collaborations are unlocking new opportunities in the global drug repurposing market. Public health agencies and non-profit organizations are actively supporting drug repurposing efforts to expedite treatment availability, particularly for rare diseases and unmet medical needs.

• For example, in February 2024, Every Cure, a non-profit organization dedicated to drug repurposing, secured $48.3 million in funding from the Advanced Research Projects Agency for Health (ARPA-H). This investment is directed toward the development of MATRIX, an AI-powered platform designed to identify new therapeutic applications for existing drugs, significantly accelerating treatment discovery.

Such funding initiatives are expected to drive innovation, improve drug accessibility, and expand market opportunities, reinforcing drug repurposing as a cost-effective and time-efficient alternative to traditional drug development.

Regional Insights

North America Drug Repurposing Market: Dominant region with 38.7% market share

North America holds a dominant position in the global market, driven by strong pharmaceutical investments in R&D, high healthcare expenditures, and a favorable regulatory framework. The region benefits from the presence of leading pharmaceutical and biotechnology companies, including Pfizer Inc., Bristol-Myers Squibb, and Eli Lilly, which are actively investing in AI-driven drug discovery and precision medicine to accelerate drug repurposing initiatives.

• The U.S. drug repurposing market is driven by the country's increasing prevalence of rare diseases. For instance, in November 2024, over 7,000 rare diseases were reported to affect more than 30 million people in the U.S. as many of these conditions are life-threatening, and the majority still lack effective treatments, highlighting the urgent need for drug repurposing to accelerate therapeutic solutions.
• Canada’s market for drug repurposing is driven by the rising cancer cases in the country. For instance, in 2023, according to the Canadian Cancer Statistics, an estimated 239,100 people in Canada were diagnosed with cancer, emphasizing the growing demand for effective treatment options, including drug repurposing, to enhance patient outcomes.

Asia-Pacific Drug Repurposing Market: Fastest growing region with the highest market CAGR

Asia-Pacific is expected to register the fastest CAGR due to rising healthcare investments, increasing chronic disease prevalence, and expanding pharmaceutical research and developments. Governments in countries such as India, China, and Japan are actively promoting drug repurposing through research grants and regulatory incentives. The expansion of contract research organizations (CROs) and AI-based drug discovery firms are further propelling market growth in the region.

• India’s drug repurposing market is driven by regulatory support for the launch of repurposed drugs. In July 2024, NovaLead Pharma announced that the Central Drugs Standard Control Organization (CDSCO), India, approved its patented repurposed drug for treating Diabetic Foot Ulcer (DFU), addressing a critical global unmet medical need. This novel topical gel, discovered and developed by NovaLead, represents both a new indication and a new formulation, set to be first launched in India.

Europe Drug Repurposing Market: A significant market driven by strong research and development

Europe represents a key market for doxorubicin, driven by high research and development investments, collaborative research frameworks, and a strong regulatory landscape. The European Medicines Agency (EMA) offers incentives such as orphan drug designation and adaptive licensing, encouraging drug repurposing initiatives. Moreover, growing interest in personalized medicine and AI-driven drug discovery is boosting market growth.

• Germany’s drug repurposing industry is driven by public and private initiatives to boost drug repurposing. In September 2022, REMEDi4ALL, an ambitious EU-funded research initiative, was launched to advance drug repurposing in Germany. The initiative aims to streamline the identification and validation of new therapeutic uses for existing drugs, accelerating treatment availability for rare diseases, cancer, and emerging health threats while reducing drug development costs and timelines.
• The UK drug repurposing market is driven by the rising clinical trials for drug repurposing in the country. For instance, in August 2023, DEBRA UK announced the approval of its first drug repurposing clinical trial, made possible through funding from the A Life Free of Pain appeal. This initiative aims to accelerate treatment development for Epidermolysis Bullosa (EB) by identifying new therapeutic uses for existing drugs.

Segmentation Analysis

By Method

Drug-centric dominates the market due to its efficiency in identifying new indications for existing drugs with well-established safety profiles. This method significantly reduces development time and costs, making it attractive for pharmaceutical companies seeking faster market entry. The growing use of computational drug screening and AI-driven modeling further enhances the segment’s growth. Additionally, successful cases like sildenafil (Viagra) and thalidomide drive industry adoption of this approach.

By Application

Oncology dominates the market as drug repurposing is widely explored in cancer treatment to overcome drug resistance and improve therapeutic options. Many existing drugs, such as metformin (originally for diabetes) and thalidomide, have shown promise in cancer treatment. The increasing burden of cancer cases globally, coupled with high R&D investments in oncology-focused repurposing, is driving segment growth. Additionally, regulatory incentives for cancer drug repurposing, such as priority review and breakthrough therapy designations, further boost the market.

By End-User

Pharmaceutical & biotechnology companies lead the market as they actively explore repurposing strategies to maximize the value of existing drug pipelines. The segment benefits from increased collaboration between pharma companies and AI-driven research firms to identify new therapeutic uses for approved drugs. Moreover, financial incentives such as market exclusivity and patent extensions encourage companies to invest in drug repurposing. The success of repurposed drugs in addressing unmet medical needs, especially in oncology and neurology, further drives the market’s expansion.

Company Market Share

Key players in the drug repurposing industry are actively adopting strategic business initiatives, including strategic collaborations, product approvals, acquisitions, and innovative product launches, to strengthen their market presence and gain a competitive edge. Companies are leveraging AI-driven platforms, expanding research partnerships, and securing regulatory fast-track approvals to accelerate drug repurposing efforts.

Rejuvenate Biomed NV: An emerging player in the global drug repurposing market

Rejuvenate Biomed NV is a company specializing in drug repurposing for healthy aging and age-related diseases. The company leverages AI-driven platforms to identify and develop novel therapeutic applications for existing drugs.

Recent Developments at Rejuvenate Biomed NV.:

• In October 2023, Rejuvenate Biomed completed a Phase 1b clinical trial for RJx-01, a repurposed drug combining galantamine and metformin, for disuse-induced muscle atrophy. The trial met all endpoints, showing safety, tolerability, and strong bioavailability. With Phase 2 trials for sarcopenia planned in 2024, this highlights the growing role of drug repurposing in addressing age-related diseases.

Recent Developments

• June 2024 – BioXcel Therapeutics leveraged AI-driven drug repurposing to identify new indications for shelved drugs. The company accelerates therapeutic innovation by combining approved drugs, clinically validated candidates, big data, and proprietary machine learning algorithms, reducing research and development costs, expanding market entry, and driving growth in neurology and immuno-oncology within the drug repurposing market.

Analyst Opinion

As per our analysts, the global drug repurposing market is poised for substantial growth, driven by rising R&D investments, the increasing prevalence of chronic and rare diseases, and advancements in AI-driven drug discovery. The cost-effectiveness and faster approval timelines of repurposed drugs compared to traditional drug development are making this approach highly attractive to pharmaceutical companies.

Despite these growth drivers, the market faces several challenges, including intellectual property (IP) limitations, pricing pressures, and competition from generic alternatives. The lack of strong patent protection for repurposed drugs can reduce profitability, making it difficult for companies to secure long-term revenue streams. Additionally, regulatory complexities related to dosing modifications and proving efficacy for new indications can delay market entry.

However, ongoing advancements in AI, big data analytics, and computational modeling are transforming drug repurposing, enhancing precision and efficiency. The oncology segment remains a key focus, with numerous repurposed drugs showing promising results in cancer treatment, offering new hope for patients with limited options.