As China embraces AI, only 24% of US pharma execs bet on it for drug-making
Pharmaceutical companies have embraced artificial intelligence in drug research almost universally, yet few company executives expect AI to actually make drugs succeed, according to a Citi survey released on Tuesday. “The biggest risk to the AI-powered drug discovery thesis is not that AI fails to accelerate discovery,” said John Yung, head of Asia healthcare research at the US investment bank.…
A recent Citi survey reveals that while many US pharmaceutical executives are optimistic about AI's role in drug discovery, only a quarter expect it to significantly improve the likelihood of developing successful drugs. The biggest risk to AI-powered drug discovery is not its acceleration of discovery, but rather whether that speed translates into better drugs and higher success probabilities.
Currently, 72% of surveyed executives have either "scaled" or "fully scaled" AI across research and development. However, only 24% anticipate AI delivering a meaningful boost in drug success probability, with 56% predicting only a moderate improvement. Human biology, clinical judgment, and execution are seen as persistent bottlenecks regardless of AI deployment.
Early-stage discovery, particularly targeting identification and validation, is seen as the area where AI can yield the most success rate improvements, followed by lead optimization and hit identification/screening. Executives anticipate a double-digit rise in AI-related R&D spending over the next year. Chinese companies like HitGen and Xtalpi are already profitable and could see earnings accelerate as demand for their AI-powered solutions grows.
However, Chinese AI drug discovery firms trade at a significantly lower price-to-sales ratio compared to their US counterparts, indicating a potential undervaluation.
Written by urgent.news from Reuters Business via SCMP's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
