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Research2Guidance - The Pharmas Rush Into AI - Whitepaper - Feb 2024
Research2Guidance - The Pharmas Rush Into AI - Whitepaper - Feb 2024
Research2Guidance - The Pharmas Rush Into AI - Whitepaper - Feb 2024
❖ DRUG DISCOVERY AND DIAGNOSTICS & MONITORING PARTNERSHIPS ARE THE MOST
TARGETED AREA OF AI COLLABORATIONS AMONG BIG PHARMA: 43% of AI
collaborations closed by 10 pharma companies since 2021 are targeting drug discovery
and development, followed by 32% targeting diagnostics and monitoring.
❖ PREFERRED AI PARTNERS ARE PATH AI, LUNIT, OWKIN, TEMPUS, AND GOOGLE:
Partnerships with these companies have been used to expedite drug development, detect
new molecules, understand disease characteristics, and streamline research functions in
pharma industry.
❖ BIG TECH IS BECOMING MORE RELEVANT WITH THE AI HYPE: IBM, Google, Amazon, and
Microsoft are the big tech companies selected by 4 out of 10 big pharma companies in the
report for AI collaborations in drug development and diagnostics since 2021.
In the current era, AI has transformed healthcare, improving diagnostic accuracy through image
interpretation, streamlining patient assessments while analysing data from wearables and sensors,
and enabling early intervention with timely alerts in remote patient monitoring. AI-powered digital
health solutions now address treatment adherence challenges with personalized reminders,
educational materials, and behavioral nudges.
Adding to this momentum, AI got its recent big boost with the hype surrounding the new GenAI tool
ChatGPT by the end of 2022.
The pharmaceutical sector is also witnessing a surge in the adoption of new AI technologies across
various facets. Reacting to the recent hype around AI and GenAI, major pharma companies have not
only embraced AI with multiple internal projects, but have been actively seeking partnerships for AI,
establishing a trend that reshapes the industry's technological landscape.
In fact, 139 collaboration deals, that have been closed by 10 big pharma companies over the last
three years, are a clear indication of the growing adoption of AI in the industry. Examining the
distribution of these collaborations across various AI use cases reveals that the pharma companies
are actively engaging with AI solution providers to enhance diverse aspects of their operations.
Drug discovery and development has been the primary focus, making up 43% of AI collaborations
among the 10 major pharmaceutical companies since 2021. This is followed by AI collaborations in
diagnostics and monitoring (32%), and clinical trials optimization and insights generation (14%).
Other use cases within AI collaborations, such as knowledge management, supply chain optimization,
or marketing, have not seen significant exploration through partnerships compared to the top 3 use
cases over the last three years.
In this whitepaper, we navigate through the surge in AI adoption in the pharma industry, examining
the AI use cases in the pharma domains, understanding the impact of AI collaborations from 10 big
pharma companies since 2021 in driving innovation, and finally discuss a collaboration strategy
framework for the pharma with the help of R2GConnect global digital health and technology scouting
platform.
demands for therapies, and help with optimization of the marketing strategies based on real-
time insights.
6. Supply Chain & Manufacture Optimization: AI optimizes pharmaceutical supply chains with
predictive maintenance for manufacturing equipment, ensuring uninterrupted production. It
also enables precise demand forecasting, minimizing waste, and responding swiftly to market
fluctuations for efficient inventory management, enhancing operational efficiency.
7. Internal Knowledge Management: AI transforms internal knowledge management with
advanced tools for data analysis, organization, and retrieval. Utilizing NLP and machine learning,
it efficiently categorizes and structures the Pharma’s internal data, facilitating quick and
accurate information retrieval. This streamlined knowledge management enhances
collaboration, decision-making, and innovation within the organization, fostering a more agile
pharmaceutical enterprise.
8. Digital Health & Care Delivery: Digital health solutions, incorporating AI technologies, become
preferred partners for pharmaceutical companies, providing access to extensive real-time
patient data, streamlining clinical trials through patient monitoring apps, collecting data from
wearables, supporting preventive care initiatives, and enhancing treatment adherence through
personalized reminders and materials.
From drug discovery and development to diagnostics, post market studies, generating commercial
insights and better utilizing internal knowledge, AI stands as a catalyst for innovation, efficiency, and
improved therapy development in the pharma industry.
Another significant deal worth billions was sealed with Exscientia in 2021 to leverage AI to speed up
the drug discovery in oncology and immunology, with BMS committing a total of $1.2 billion USD
contingent on milestone achievements.
Examining other AI and ML use cases at BMS, the partnership with Okra.AI, initiated in 2018 and
expanded in 2022, entails the utilization of OKRA.AI's platform to connect and generate insights from
multiple datasets, supporting BMS's commercial teams. Additionally, collaborations with digital
health solution providers like Temedica aim to efficiently launch AI-powered digital companion
solutions.
To increase its capacity in using AI for clinical trial design, execution, and precision, Owkin has
become not only BMS’s but also other big pharma companies first choice. BMS also invested in
Owkin’s equity round and provided over $100 million USD contingent on milestone achievements.
Diagnostics and monitoring are other areas that BMS has invested resources to utilize AI, together
with its partners like Viz.ai and Elekta over the recent years.
Overall, Bristol Myers Squibb strategically pursues multiple partnerships to harness the potential of
artificial intelligence, aiming to expedite drug discovery, support marketing and commercial
activities, enhance clinical trial processes, improve patient care, and advance precision medicine. The
company typically commits upfront financial investments in its strategic partnerships with AI solution
providers and deepen its ties with the AI partners with further expansion of partnerships.
Bayer further strengthened its AI capabilities by acquiring the UK-based medical imaging company,
Blackford Analysis, as a wholly owned subsidiary in 2023, expanding its access to a diverse clinical
application ecosystem centred around imaging and analytics.
In addition to its focus on AI-powered diagnostics and monitoring solutions, Bayer has actively
pursued partnerships and investments in digital health solutions leveraging AI technologies. Through
initiatives of Leaps by Bayer and G4A accelerator programs, the company strategically collaborates
with solution providers like Woebot Health to drive innovation supported by AI technologies.
With the launch of a new Precision Health business unit in Consumer Health division, it is expected
that Bayer will have increasing number of partnerships in the case of digital health alongside its
diagnostics portfolio.
Over the last year, Bayer has also collaborated with Recursion and Google Cloud in 2023 to
accelerate its drug discovery. Leveraging Recursion's AI platform, Bayer focuses on identifying new
treatment targets for various cancer types. Simultaneously, Google Cloud also provides Bayer with
access to advanced AI and ML applications with Google’s high performance computing power to help
identify novel drug targets and utilize Vertex AI and Med-PaLM 2 to analyze large datasets and
generate insights.
Another noteworthy partnership of Bayer is the one with Altis Labs in 2023, focusing on using digital
twins in clinical trials, by automatically analysing imaging data from past and current clinical trials
using prognostic AI models.
Bayer's recent AI strategies demonstrate a heightened focus on diagnostics and monitoring, marked
by various collaborations, and the expansion of its radiology business with the introduction of the
Calantic marketplace. Beyond financial support in partnerships, the pharmaceutical giant contributes
to the development and enhancement of AI solutions through funding and mentorship provided by
Leaps by Bayer and G4A.
Owkin stands out as one of Sanofi's preferred partners in the clinical trials domain as well, utilizing
de-identified patient data to predict treatment responses for different patient profiles.
Another interesting use case of AI at Sanofi came up with integration of company-wide AI solution
called plai, developed in partnerships with Aily Labs. The solution helps with decision-making in
different Sanofi departments, such as by predicting low inventory in supply chain or finding the right
trial sites for targets in the clinical research.
Over the past two years, Sanofi has allocated resources to invest in digital health companies such as
Hillo. The integration of Hillo's digital twin AI solution and monitoring platform with Sanofi's
connected insulin pens contributes to personalized medicine offered by the company. In 2022, Sanofi
US’s also signed a deal with DarioHealth which aims to leverage the Dario platform for developing
enhanced digital health solutions, though not AI-specific.
Furthermore, Sanofi has launched the Open Innovation Portal through its Consumer Healthcare unit,
inviting external solution providers to address challenges in consumer health and collaboratively
develop innovative self-management health solutions.
Sanofi stands as a rare example in the pharma industry, having developed and implemented an AI
solution across all company divisions to generate insights for a range of operations. This strategic
move surpasses the focus on partnerships and acquisitions solely targeting drug discovery and R&D
activities. By integrating AI into supply chain management, clinical research, digital health solutions,
as well as drug discovery, Sanofi is committed to increase the use cases of AI in the company.
Pfizer has also been collaborating with the AI-powered digital health solution providers like Ada
Health and Alex Therapeutics, to develop new digital health offerings, companion solutions and
increase patients’ access to care with the help of AI.
Last but not least, Pfizer is also known by its partnership with Amazon Web Services (AWS), to embed
the latter’s analytics, ML and cloud data warehousing solutions to Pfizer laboratory, clinical
manufacturing and clinical supple chain efforts.
To fuel the innovation with AI further, Pfizer also leverages its Healthcare Hub for partnering,
creating proof-of-concepts and feasibility studies with AI experts in various fields to boost efficiency
in its supply chain, research and development. In 2021, Pfizer, AstraZeneca, Merck and Teva have
also joined forces with Amazon Web Services and Israel Biotech Fund and founded AION Labs to
invest in early-stage startup teams focused on AI and computational biology in drug discovery and
development.
Looking broadly on Pfizer’s AI strategy development over the past few years, it is evident that the
company has strategically prioritized partnerships to propel advancements in drug discovery,
diagnostics, and monitoring. These collaborations, spanning across diverse domains such as clinical
trial matching, respiratory diagnostics, and cardiac condition detection, reflect Pfizer's commitment
to leveraging AI for comprehensive enhancements in different disease areas.
In the diagnostics segment, the company partnered with a range of AI experts in different disease
areas, such as Qureight in respiratory, Idoven in cardiovascular or Sophia Genetics in oncology, for
early diagnosis of patients, understanding disease characteristics in different patient groups, and
driving personalized medicine.
Furthermore, to accelerate clinical trials and data collection from patients, AstraZeneca has firstly
sold its AMAZE platform to HUMA in 2022, made investments in the company, and then rolled its
sleeves to co-develop companion apps with HUMA for the patients to get connected in decentralized
clinical trials.
Recently also to accelerate submissions and navigate through the changing regulatory landscapes,
AstraZeneca collaborated with SAS to enable data re-use and automate statistical analysis for clinical
and post-approval submissions.
Overall, AstraZeneca's emphasis on partnering with AI experts in drug discovery and diagnostics is
evident based on the number of partnerships, acquisitions, and investments it has committed to in
just the last three years. This strategic commitment positions AstraZeneca at the forefront of utilizing
AI to drive innovation across various facets of healthcare, ranging from precision medicine to
decentralized clinical trials.
Furthermore, the collaboration with Yseop in 2022, akin to Sanofi, focuses on enhancing the
generation of regulatory submission-ready reports.
Eli Lilly's commitment to AI-backed drug discovery and development is evident in its substantial
investments, reaching billions, in various solution partners before 2021. The company continues to
navigate the evolving landscape of AI collaborations to drive innovation and efficiency in
pharmaceutical research and development.
For clinical trials and insights generation, Janssen, in late 2023, partnered with Atropos Health for the
analysis of real-world data. This collaboration aims to generate evidence for research, address unmet
needs, and accelerate hypothesis testing.
In a parallel move, Janssen invested in real-world data and AI solutions, collaborating with companies
like Verana Health. These investments aim to expedite insights generation from de-identified and
unstructured data, informing the company's research and development projects. A prior partnership
with Verana Health in 2021 also focused on prostate cancer and ophthalmology areas.
Janssen has embraced collaborations with innovative entities to streamline drug discovery processes,
personalize cancer therapies, and generate real-world insights for clinical research. With initiatives
like JLABS and the QuickFire Challenge, the company actively fosters innovation, find partners and
accelerates transformative healthcare solutions.
BI has further demonstrated its commitment to the diagnostics sector by leading funding rounds for
startups like Brainomix and Aignostics.
Internally, BI has implemented AI solutions for knowledge management, streamlining research and
development. Leveraging AI-backed data analysis, cloud software services, and applications from
Veeva and Cognizant, BI consolidates clinical, regulatory, and quality functions into a unified
platform. Additionally, the collaboration with Cap Gemini resulted in a custom AI and ML-based
analytics platform, enhancing BI's data utilization and insights derivation.
Overall, Boehringer Ingelheim's strategic partnerships and internal AI initiatives underscore its
commitment to leveraging cutting-edge technologies for drug discovery, diagnostics, and knowledge
management.
Similar to Boehringer Ingelheim’s partnership with IBM, Roche has also forged alliances to leverage
GenAI technologies for drug discovery. Roche-Genentech’s partnership with Nvidia in 2023 aims to
design new kinds of molecules for drugs by harnessing Roche’s extensive datasets to train GenAI
algorithms leveraging Nvidia’s DGX Cloud supercomputer and BioNeMo services.
Lastly, Roche’s diagnostics division has chosen Lark Health in 2022 to launch a heart health program
delivering AI-driven virtual care and coaching.
In summary, from diagnostic breakthroughs embedded within the navify platform to pioneering drug
discovery with GenAI technologies, Roche, since 2021, navigates the evolving pharma landscape with
a commitment to innovation fostered by strategic partnerships.
Utilizing the AI, ML and real-world data repositories of Tempus since 2020, GSK has streamlined
clinical trial design, patient enrolment, and identification of new drug targets.
Furthermore, GSK has piloted AI and ML-backed digital twin technology in its manufacturing
capabilities, developed in partnership with ATOS and Siemens in 2021. The technology aids in fine-
tuning production by providing simulated insights based on real-world data generated from a
computerized replica of the manufacturing process for vaccines.
Overall, GSK’s collaborations for AI encompasses use cases in drug development, diagnostics, clinical
trial optimization and manufacturing. From forging alliances with AI leaders like PathAI and Viome to
piloting cutting-edge technologies in manufacturing with ATOS and Siemens, GSK actively embraces
the transformative potential of AI.
IT IS ALL ABOUT SELECTING THE RIGHT USE CASE AND FINDING THE
RIGHT PARTNER
From the analysis on the AI focused partnerships, acquisitions, and investments of the pharma giants
over the last three years, it is evident that collaboration is a relevant approach to build and use AI
solutions in the industry. The pharma companies have already started building their ecosystems for
AI integration for many years, and now they are getting even more active to drive innovation with AI
partnerships.
Not only for drug development processes of the pharma, but also to optimize the operational
processes internally, Pharma is looking out for AI partners.
To find the right AI partner, companies should follow a phased approach.
Phase 1: Defining the AI use case(s)
The aim here is to select the areas in which the greatest benefit from AI solutions can be expected
for the company. The decisive factor is to what extent the technology can already achieve sufficiently
good results today or in the next 1-2 years.
The R2G's AI partner selection framework proceeds in steps. First, the possible use cases are
determined. For this purpose, internal ideation workshops are held. These are supported by
competitor benchmarks (“For which use cases do our direct competitors use AI?”) and then
prioritized for the first time.
In the next step, an initial feasibility check will be carried out. The question is “Is there sufficient
evidence that the AI technology or the AI solutions on the market deliver good results to realize the
expected benefits of the use case?
The order of the use cases is then recorded in the AI roadmap based on the expected benefits and
the feasibility assessment.
Phase 2: The AI partner selection
The selection of the future AI partner(s) typically begins with an extensive scouting of the available
solutions, their evaluation in several steps (shortlisting), the subsequent approach and invitation to
initial partnership discussions and negotiations with 2-3 possible partners.
R2G's approach relies on the world's largest database of digital health companies worldwide,
R2GConnect. AI partnership requests including the selection criteria are formulated directly as
briefings. Digital health companies respond with detailed applications and expressions of their
interest in a partnership. R2Gconnect is growing quickly. As of October 2022, more than 8,000 digital
health companies have registered on the platform. With every briefing, new companies are added.
Projects that use R2GConnect receive a list of detailed applications evaluated based on the selection
criteria.
In order to massively increase the chances for success in AI partnerships right from the start, R2G has
developed a systematic partnership modelling process that starts during partner selection.
Concrete term sheets are created with the last 2-3 candidates, which already reflect all the essential
aspects of the possible partnership. This includes understanding what each partner expects from the
other in the partnership and is willing to contribute, the definition of the roles and responsibilities in
the partnership, the implementation plan as well as the financial and legal aspects of the partnership.
The prepared term sheets can also be used to justify the choice of partner internally. In addition, a
risk/benefit analysis is carried out to support decision-making. The time that it takes to draw a final
contract can be significantly reduced through this process, and the project can start quickly.
Phase 4: Get started, piloting and upscaling
In this phase of the partnership, the first thing is to set up the project teams correctly. The provision
of resources in sufficient capacity is crucial here. Team building measures make the start easier for
more complex and larger projects. Efficient monitoring ensures transparency during the partnership
and enables timely countermeasures if problems arise. The pilot or development phase typically lasts
between 3-6 months. Afterwards, a first AI solution (MVP) should be available.
As the pharmaceutical companies actively cultivate their AI ecosystems, partnerships have become
inevitable and essential for navigating and driving innovation. However, the challenge lies in finding
the right AI partner, and developing an effective collaboration strategy, without being caught up in
its hype. Finding the right strategic partner could take months if not years, and benefiting from global
digital health scouting platforms such as R2GConnect can significantly expedite this process. This
approach ensures a systematic and informed selection of AI partners, fostering successful
collaborations and maximizing the impact of AI solutions across pharmaceutical operations.
R2G has already guided a number of pharmaceutical companies through the process of successful
partnerships. Contact us for an initial exchange about your AI project.
ABOUT RESEARCH2GUIDANCE:
Research2Guidance is a consulting and market research company focusing
exclusively on digital health. We provide strategy advising, competitor evaluations,
and market sizing services to global clients across the spectrum of healthcare
delivery, including MedTech companies, health plans, pharma, and start-ups. We are
convinced that digitization will revolutionize healthcare around the world and
provide the market intelligence and strategic advice to help make this happen.
Berlin, Germany, +49 (0)30 400 42 432
Ralf Jahns
Managing Director
ralf.jahns@research2guidance.com