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

How artificial intelligence AI can be used in drug discoveries? ›

AI can aid in predicting drugs' bioactivity by leveraging machine learning algorithms to analyze vast amounts of data on known compounds and their biological activities. These algorithms can learn from this data to predict the bioactivity of new, untested compounds.

Which drug discovery company uses AI? ›

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.

What are the drawbacks of AI in drug discovery? ›

Over-reliance on data: AI systems are only as good as the data they're trained on; therefore, if the data is flawed or biased, the AI could make incorrect predictions. Additionally, AI may overlook potentially successful drug candidates simply because they may not fit the patterns in the data it has been trained on.

What is the success rate of AI drug discovery? ›

Molecules identified through AI exhibit greater success in early clinical trials than those discovered using traditional techniques. “Phase 1 trials for AI-discovered drugs have shown success rates between 80-90%, significantly higher than the historical industry averages of 40-65%,” Latshaw said.

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 is one potential benefit of generative AI in drug discovery? ›

By accelerating the identification and optimization of drug candidates, generative AI has the potential to significantly reduce the time and financial resources required to bring new drugs to market. This translates to faster development of treatments and potentially lower costs for patients.

What is an example of an AI drug? ›

Examples of AI drugs are anastrozole, letrozole, and exemestane. AI drugs are a type of hormone therapy. Also called aromatase inhibitor.

What pharma stock is powered by AI? ›

Exscientia (NASDAQ: EXAI)

Exscientia is one of the leading AI pharmaceutical companies that uses its proprietary AI platforms to design and develop precision therapies. The company has had remarkable success, with 4 compounds already in early clinical stages and over 30 programs in total.

How much does it cost to discover AI drugs? ›

Case Studies of AI in Drug Development

Traditionally, this process would have taken six years and cost over $400 million. With generative AI, Insilico reduced the cost to one-tenth and the time to two and a half years.

What are 3 disadvantages of AI? ›

Top 5 disadvantages of AI
  • A lack of creativity. Although AI has been tasked with creating everything from computer code to visual art, it lacks original thought. ...
  • The absence of empathy. ...
  • Skill loss in humans. ...
  • Possible overreliance on the technology and increased laziness in humans. ...
  • Job loss and displacement.
Jun 16, 2023

What is the danger of AI in medicine? ›

However, along with the many benefits of AI there are security and privacy risks that must be considered. One of the biggest risks is the potential for data breaches. As health care providers create, receive, store and transmit large quantities of sensitive patient data, they become targets for cybercriminals.

What are the inaccuracies of AI in healthcare? ›

Mistakes can include biased outcomes, “hallucinations” and AI drift, which may seriously harm patients and therefore demand measures and increased awareness to counter these unwanted effects.

Can AI really replace doctors? ›

For now, the need for human interaction in healthcare is likely to keep AI on the sidelines as a complement, rather than a substitute, for doctors, Dranove says. But perhaps in a few decades, patients will be comfortable interacting with computers and even trust them as their main source of medical guidance.

What is the future of AI in drug discovery? ›

Generative AI is the main contributor to the drug discovery process, leveraging machine learning algorithms to generate and optimize potential drug candidates. This field of artificial intelligence generates new molecule structures, or compounds, based on the analysis of the existing datasets.

Which company has launched an AI-driven drug discovery start-up? ›

The pursuit to use AI to discover new life-saving drugs got a big boost this week when a new company, Xaira Therapeutics, emerged from stealth with $1 billion in funding. The San Francisco-based firm aims to create AI models to develop new ways to connect biological targets and engineered molecules to human diseases.

How is artificial intelligence used in medicine? ›

In medical imaging, AI tools are being used to analyze CT scans, x-rays, MRIs and other images for lesions or other findings that a human radiologist might miss.

How is artificial intelligence used in plant based drug discovery? ›

AI-powered programs and technologies can review and analyze natural products for these properties at a faster pace and assimilate data efficiently - thereby predicting biological activity and speeding up the drug discovery process.

How will AI be very useful in medicine? ›

Artificial intelligence (AI) will be highly beneficial in medicine due to its capabilities in analyzing vast amounts of data quickly and accurately. For example, AI-powered machines can identify patterns in medical images like skin problems, aiding in diagnosis and treatment.

What is the role of artificial intelligence in drug safety? ›

AI systems can analyze large datasets to identify potential safety issues with drugs, such as adverse drug reactions, and help pharmaceutical companies develop safer drugs.

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