Artificial Intelligence (AI) in Drug Discovery Companies (2024)

By Kimmy Gustafson

By Kimmy Gustafson Reviewed By Jocelyn Blore

Updated June 13, 2024Editorial Values

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“Companies that learn how to convert theoretical and computational predictions into high-quality action following standard regulatory data validation will succeed because they will rapidly develop new products. I am less optimistic about companies solely focusing on their own AI and not transitioning from a tool to the practical utility of that tool.”

Alexander Tropsha, PhD, K.H. Lee Distinguished Professor, Eshelman School of Pharmacy at the University of North Carolina at Chapel Hill

Historically, drug discovery has been characterized by high costs, lengthy timelines, and considerable uncertainty. Traditional methodologies often rely on trial and error, involving extensive laboratory research, animal testing, and multiple phases of human clinical trials. This painstaking process can span over a decade and requires significant financial investment. Yet, the success rate for drugs to make it from discovery to market remains low, with only 10 to 15 percent of drugs actually making it to market.

However, artificial intelligence (AI) is poised to change that. With AI, pharmaceutical companies can accelerate the drug discovery process, enhance the precision of targeting specific diseases, and significantly reduce the time and cost associated with bringing new medications to the market. AI’s ability to analyze vast datasets and uncover patterns invisible to the human eye opens up new opportunities for personalized medicine and novel treatments.

“If you look at the traditional drug discovery pipeline, the biological experiments increase in complexity as we move through higher levels of species up to animals, and then finally, we are allowed to test them on humans,” explains Dr. Alexander Tropsha, K.H. Lee distinguished professor at the UNC Eshelman School of Pharmacy at the University of North Carolina at Chapel Hill. “I think to the point of just having new chemicals and forecasting the probability of getting to a clinical trial, that’s where AI can be helpful. Also, it can help with broad global analysis of all the relevant information and summarization.”

Large language models (LLMs), AI trained with a vast set of data, and statistical modeling, which is what AI is built on, are both areas where AI is proving useful. “LLMs are used to formulate the direction in which chemists should pursue their studies. At the right time, you can tune quantitative and statistical models to answer specific questions that are beyond linguistic capabilities,” says Dr. Tropsha. One such example of this is ChemCrow, which does exactly that—combines an LLM and statistical modeling for more accurate chemical discovery.

Those who can figure out how to leverage AI for drug discovery will have an advantage over the competition. “Companies that learn how to convert theoretical and computational predictions into high-quality action following standard regulatory data validation will succeed because they will rapidly develop new products,” says Dr. Tropsha. “I am less optimistic about companies solely focusing on their own AI and not transitioning from a tool to the practical utility of that tool.”

As with all AI, there are some concerns: “Trust but verify. Science has become closer in the minds of the general public. They understand the process and the results. However, they often get excited about it, leading to a lot of general interest. These tools appear easy to use, which can result in very misleading results. We should move forward with respect and deep understanding,” encourages Dr. Tropsha.

Keep reading to learn about AI drug discovery, recent developments, and ethical concerns.

Meet the Expert: Alexander Tropsha, PhD

Artificial Intelligence (AI) in Drug Discovery Companies (1)

Dr. Alexander Tropsha is the K.H. Lee distinguished professor at the Eshelman School of Pharmacy at the University of North Carolina at Chapel Hill. With expertise in computational chemistry, cheminformatics, and structural bioinformatics, Dr. Tropsha’s research focuses on computational drug discovery, cheminformatics, computational toxicology, and health informatics.

Dr. Tropsha’s contributions to biomolecular informatics and dedication to understanding relationships between molecular structures have made him a respected figure in the academic and scientific communities. He is a prolific author with over 190 peer-reviewed papers and 20 books and chapters.

What Defines AI For Drug Discovery

At its core, AI for drug discovery involves using artificial intelligence and machine learning techniques to analyze vast amounts of data to uncover patterns and make predictions about potential drugs. This includes using large language models (LLMs) and statistical modeling to identify and develop new chemical compounds and utilizing AI algorithms to optimize clinical trial design and identify promising treatment targets.

Currently, AI is a buzzword that can often be misunderstood. “People call it AI, but in reality, it’s something that they’ve been doing for many years. There is a lot of misuse of the term AI as applied to drug discovery,” explains Dr. Tropsha. More traditionally, machine learning has been used in association with AI but there is a key difference, which is that an AI algorithm incorporates procedures that enable it to make independent decisions.”

He continues, “The thing is, machine learning-based models did not have this ability to process data in an ongoing way. You take the existing data, build a model, optimize the model, and then you have a fixed model. And so there’s no dynamic process. That, to me, is a discriminating factor. AI, on the other hand, can draw conclusions as it processes and validate those decisions for accuracy at the same time.”

The Future of AI in Drug Discovery

As technology advances and we gain a greater understanding of how to apply AI techniques to drug discovery, the potential for groundbreaking discoveries and treatments becomes increasingly more likely. “It will become very specific, and that gets less and less exploratory, more and more pragmatic,” says Dr. Tropsha.

One area that shows a lot of promise is generative chemistry, a revolutionary approach within the drug discovery process, harnessing the power of artificial intelligence to generate novel chemical structures with potential therapeutic properties. “Generative chemistry will continue to develop more and more structures in conjunction with a better understanding of chemical design rules and chemical synthetic groups. Bigger datasets will contribute to generating not just new chemical structures but new chemical structures that are increasingly realistic,” explains Dr. Tropsha.

“The biggest change has been in chemical companies that traditionally will synthesize chemical libraries that pharma companies would buy and test in the hopes of finding chemicals to develop into a commercial drug. Those libraries have grown in size dramatically in a very short period of time. We have gone from less than a billion molecules to now close to 50 billion molecules in just one year. In contrast, it took 20 years to reach the initial 1 billion molecules that can be made, enumerated, and used for computational drug discovery.”

“My expectation is that generative models will hallucinate about chemicals that can be made and then test to see if they can be made using structural rules, but not synthetic rules. This means they can be really hard to make,” he adds. “I expect that as these AI models learn enough rules of organic chemistry through the use of large language models, it will allow us to use them to produce more and more realistic and measurable chemical molecules. And not only make them but ensure they have desired properties at the time of synthesis. That’s the holy grail of the pharma industry.”

This process can drastically speed up drug discovery in many ways. “The primary way is that it will reduce the amount of experimental effort needed. AI can narrow results down to a smaller number of chemicals to validate theoretical predictions,” Dr. Tropsha explains. “It’s a shift from exploratory methodologies and drug discovery to more rational design.”

Recent Developments In AI That Will Affect Drug Discovery

Recent developments in artificial intelligence (AI) have significantly impacted the field of drug discovery, particularly in the realm of protein. “The biggest development has been the creation of AlphaFold from Google DeepMind. It didn’t solve the long-standing problem of figuring out how proteins rapidly fold from a primary sequence into a unique three-dimensional structure, but rather improved dramatically the accuracy of prediction of protein structures,” shares Dr. Tropsha.

“People are still exploring whether it’s practical for drug discovery. This theoretical method predicts the three-dimensional structure of the protein and enables the use of special computational tools. The current assessment is that the accuracy of this prediction—while the overarching shape prediction is accurate—is not precise enough at the clinic resolution level to affect drug discovery application. I think, in the next few years, the accuracy of the predictions will increase and will lead to more targeted development of new molecules with less effort faster and will get the compounds that have the desired activity.”

The ramifications of these advancements are profound. “Currently, there it’s still significant experimental effort required to characterize the three dimensional structure of a protein. As methods improve, instead of wading through the fairly substantial experimental effort of trial and error, we could instead rely on theoretical models of the project that will be accurate. That would be a really dramatic breakthrough,” he says.

Other developments include more familiar AI programs like ChatGPT. “Large pharma companies are increasingly using ChatGPT to integrate large scale and different levels of complexity data, to be able to extrapolate what happens in vitro to what we observe in vivo,” explains Dr. Tropha. “The number of molecules that are active in in vitro biological experiments is enormous. However, there is still a lack of understanding on how the initial experimental data in support of the drug discovery pipeline effectively translates through the entire drug discovery pipeline. With AI we can have a better understanding of this and extrapolate better.”

Top Companies Using AI for Drug Discovery

Here are some top companies currently working in the AI drug discovery space:

  • Atomwise – Atomwise utilizes artificial intelligence to pioneer the use of deep learning algorithms for the structure-based discovery of new drugs. Their AI-driven platform, AtomNet, specializes in predicting the binding of small molecules to proteins, which is crucial for identifying novel drug candidates faster and with higher precision.
  • BenevolentAI – BenevolentAI stands out for integrating artificial intelligence with drug discovery and development processes. Their unique AI platform leverages machine learning to understand the complexities of disease biology, identify potential drug targets, and accelerate the path from dynamic research insights to clinical development.
  • DeepMind – A subsidiary of Alphabet Inc., DeepMind excels in leveraging AI for multiple complex challenges, including drug discovery. Their breakthrough in protein folding, demonstrated by AlphaFold, represents a significant leap forward in understanding protein structures, an essential component of developing new and effective drugs.
  • Insilico Medicine – Insilico Medicine is at the forefront of using AI for drug discovery and development, especially focusing on age-related diseases. They employ deep learning techniques for drug target identification, generative chemistry, and predictive analytics to design molecules from scratch, significantly reducing the time needed for early-stage drug discovery.
  • Recursion Pharmaceuticals – Recursion Pharmaceuticals combines artificial intelligence with experimental biology to decode biology and drive drug discovery. Their proprietary platform uses automated, high-throughput screening of cellular phenotypes, applying machine learning models to predict the efficacy of compounds, streamline the drug discovery process, and identify treatments for rare diseases.

Artificial Intelligence (AI) in Drug Discovery Companies (2)

Kimmy Gustafson Writer

With her passion for uncovering the latest innovations and trends, Kimmy Gustafson has provided valuable insights and has interviewed experts to provide readers with the latest information in the rapidly evolving field of medical technology since 2019. Kimmy has been a freelance writer for more than a decade, writing hundreds of articles on a wide variety of topics such as startups, nonprofits, healthcare, kiteboarding, the outdoors, and higher education. She is passionate about seeing the world and has traveled to over 27 countries. She holds a bachelor’s degree in journalism from the University of Oregon. When not working she can be found outdoors, parenting, kiteboarding, or cooking.

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Artificial Intelligence (AI) in Drug Discovery Companies (2024)

FAQs

Artificial Intelligence (AI) in Drug Discovery Companies? ›

Exscientia. Considered a pioneer in the field of AI within the biopharma industry, Exscientia is an AI-driven precision medicine company committed to discovering, designing, and developing the best possible drugs in the fastest and most effective manner using its AI technology.

Which drug discovery company uses AI? ›

Exscientia (NASDAQ: EXAI)

Oxford-based clinical-stage biotech Exscientia focuses on drug discovery of small molecules for various therapeutic indications using its patient-first AI-driven platform, CentaurAI. Founded in 2012, the company went public in October 2021, raising a total of $510.4 million.

How is AI used in drug discovery and development? ›

AI can aid in various stages of drug discovery in various ways, including disease identification, target acquisition, computational screening, predicting drug toxicity, gene editing for developing gene therapies, and AI-based modeling for personalized drug dosing.

How are pharmaceutical companies using AI? ›

AI's most significant impact in pharma is in drug discovery, as it accelerates the identification of potential drug candidates and optimizes molecular design. By analyzing biological data, AI helps in predicting drug efficacy and safety profiles, shortening the time from laboratory to market.

What are the problems with AI in drug discovery? ›

One major hurdle is the need for high-quality, diverse, and properly labeled data to train AI models. Ensuring data privacy and security is also a key concern, particularly when dealing with sensitive patient information.

What is the success rate of AI drug discovery? ›

AI-discovered drugs in Phase I clinical trials have an 80-90 per cent success rate, far outpacing drugs discovered by humans, new research has found. Human-discovered drugs have an average success rate of 40-65 per cent in Phase I. The new BCG research is published in the journal Drug Discovery Today.

What AI drug sold for $4 billion? ›

In 2022, a company called Nimbus sold a promising chemical to a Japanese drug giant for $4 billion. It had used computational approaches to design the compound, though not strictly AI (its software models the physics of how molecules bond together).

Is Pfizer AI in drug discovery? ›

In this regard, Pfizer is also at the forefront of the AI race. The company uses AI in clinical development to generate documents, tables, and reports for drug approval. This happens in conjunction with the drug discovery process, shortening the time to market.

What is the future of AI in pharma? ›

In total, pharma companies could gain an additional $254bn in operating profits worldwide by 2030, assuming a high degree of industrialization of AI use cases. This additional AI value would include $155bn in the US, $52bn in emerging markets, $33bn in Europe and $14bn in remaining countries.

What is Gen AI for drug discovery? ›

Generative AI enables pharmaceutical companies to explore potential new drugs with unprecedented scale, speed, and accuracy, facilitating quicker progression to clinical trials.

What was the first drug discovered by AI? ›

INS018-055. Insilico Medicine, a biotech company headquartered in Hong Kong, has created the world's first AI-designed anti-fibrotic small molecule inhibitor drug to be tested in human patients.

Can AI make new drugs? ›

Stanford Medicine researchers devise a new artificial intelligence model, SyntheMol, which creates recipes for chemists to synthesize the drugs in the lab.

Is AI starting to accelerate drug discovery nature? ›

But advances in AI are reinventing the processes involved and accelerating drug discovery. Chemists must transform alongside this shift, acquiring the skills and knowledge to apply AI in their work while collaborating more closely than ever with computational chemistry and data science teams.

Does Pfizer use AI? ›

Since 2014, Pfizer has used artificial intelligence to help sort through and categorize reports that people file when they experience an “adverse event.”

Is Atomwise and Sanofi partner for drug discovery using AI? ›

Agreement includes upfront payment of $20 million with the potential for $1 billion in milestone-based payments plus tiered royalties SAN FRANCISCO — August 17, 2022 — Atomwise, a leader in using artificial intelligence (AI) for small molecule drug discovery, today announced that it has established a strategic and ...

What healthcare companies are using generative AI? ›

Let's take a look at how three healthcare customers are using Amazon Bedrock.
  • Fujita Health University improves work flows for doctors. ...
  • Genomics England accelerates gene-disease research using Anthropic Claude on AWS. ...
  • AlayaCare equips home care professionals with rapid information when engaging patients.
May 8, 2024

What was the first AI drug discovery? ›

Insilico Medicine, a biotech company headquartered in Hong Kong, has created the world's first AI-designed anti-fibrotic small molecule inhibitor drug to be tested in human patients.

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