The future of AI in drug discovery and the pharmaceutical sector is covered in the article. The AI Drug Discovery (AIDD) market will likely continue to consolidate in 2024 with a large number of legacy and first-generation AIDD companies expected to go out of business. Though most of them will probably fail, a new wave of AI drug discovery businesses is anticipated to emerge. The platform partnerships will give way to asset or software licensing, with pharmaceutical corporations becoming more and more interested in licensing AIDD startups’ assets.
It is anticipated that NVIDIA will be a major player in AIDD software, which could prevent the emergence of companies with low differentiation. In 2024, it’s anticipated that Google DeepMind’s Isomorphic Labs would announce many pharmaceutical collaborations. Additionally, the author foresees a widespread Microsoft platform rollout of Large Language Models (LLMs) in the pharmaceutical industry. It is anticipated that the AIDD business would continue to consolidate despite significant advancements in technology.
Important lessons learned:
It is anticipated that the AIDD market will continue to consolidate as a result of numerous businesses falling short of investor expectations and not meeting their commitments.
Anticipate the emergence of a new wave of AI drug discovery businesses, many of which will probably fail but add to a pool of seasoned tech-bio talent.
It is anticipated that when more pharmaceutical businesses become aware of the value of AI-generated assets, platform partnerships will give way to asset or software licensing as the industry’s business models.
It is anticipated that NVIDIA will be a significant player in AIDD software, which would prevent the emergence of firms with minimal unique selling points.
