Upstart Chinese drug innovators are joining their foreign competitors in deploying more artificial intelligence (AI) tools to reduce the costs of discoveries in an effort to shorten the route to clinical trials and commercialization. Genscript Biotech, based in Nanjing, Jiangsu province, is developing in-house AI tools – using its enzyme prediction database and an algorithm for altering the DNA sequence of a gene – to identify and optimize promising candidates based on protein sequences and therapeutic targets, according to analysts at Jefferies. XTalPi, a Shenzhen-based AI-powered new drugs research firm, announced a deal with U.S. firm DoveTree for global commercialization rights to its drug candidates for oncology, autoimmune and neurological diseases. Boston-based Insilico Medicine published the results of its phase two trial of rentosertib in the Nature Medicine journal, claiming the first proof-of-concept clinical validation of AI-driven discovery. Its drug candidate was tested for idiopathic pulmonary fibrosis, a chronic and progressive disease characterized by the scarring of lung tissue.
At stake is a business that is projected to grow exponentially in the next decade. The market for AI-assisted drug discovery could reach USD13 billion by 2032 from USD1.5 billion in 2023, Coherent Solutions said in a report in April. Spending on AI-based clinical research tools could exceed USD7 billion by 2030, the software engineering firm said. AI enables the processing of vast data, such as the genetic and protein content of biological samples, and clinical trials data more accurately and faster, according to Nebius, a Netherlands-based AI infrastructure and software provider.
“Drug innovation was slow, expensive and often bogged down by clunky infrastructure,” said Ilya Burkov, its global head of healthcare and life science. “AI platforms can help identify novel targets and design promising new drug candidates in as quick as 18 months, compared to five to seven years, traditionally.” While AI-assisted efforts are relatively new and none of the candidates have reached commercial status, the potential lies in the predictive power of AI models in accurately translating animal test results into clinical applications on human bodies, according to Goldman Sachs.
“This is where the biggest bottleneck is and where the real disruption can happen,” said Chen Ziyi, head of Asia healthcare research at Goldman. “AI is promising with lots of hopes and unknowns, hopefully it will get smart enough for us to get there.” AI-assisted efforts have gained momentum in China’s healthcare industry over the past five years, aided by technical advancement, policy incentives and capital investment, Jefferies said. The XTalPi deal showed Chinese biotech AI capabilities have also been recognized globally, the South China Morning Post reports.
