The development of small molecules into NCEs continues to be of vital importance in the drug discovery business. Despite the fact that the number of approved NCEs has seen a decline in recent years, small molecules continue to dominate the percentage of overall novel drugs that make it into the market. These two factors are driving the need for innovative new technologies to small molecule drug discovery. Fragment-based drug discovery is one such technology that has been developed in the last decade. This article discusses the major deals made by companies that utilise the technology in their drug discovery efforts, and the prospects of this technology for the industry.