Novo Nordisk announced a partnership with OpenAI on Tuesday to find new treatments faster. The Danish drugmaker wants to use AI to analyze complex datasets, spot promising new drugs, and cut the time it takes to get medicines from the lab to patients.
The company’s stock jumped 2.8% after the news broke. Novo is fighting to regain ground against U.S. rival Eli Lilly in the profitable weight loss drug market.
How does it work?
The partnership will let Novo process datasets at a much larger scale than before. CEO Mike Doustdar says AI can identify patterns humans miss and test ideas much faster.
“There are millions of people living with obesity and diabetes who need treatment options, and we know there are therapies still waiting to be discovered that could change their lives,” Doustdar said.
The collaboration builds on Novo’s existing AI work, which includes a partnership with Nvidia to use the Gefion sovereign AI supercomputer for drug discovery.
Why does it matter?
Drugmakers face huge challenges in bringing new treatments to market. The process typically takes years and costs billions of dollars. AI could help companies:
- Find patients and sites for clinical trials faster
- Analyze research data more efficiently
- Spot patterns in complex biological information
- Test multiple drug candidates simultaneously
“AI is reshaping industries and in life sciences, it can help people live better, longer lives,” said OpenAI CEO Sam Altman.
The context
More drugmakers are turning to AI to improve their operations, but experts say the industry is still far from using the technology’s full potential. The most immediate benefits may come from areas like clinical trial design rather than actual drug discovery.
“We haven’t heard the last of it yet… in terms of how clinical trials get designed and run, a lot of it is still very traditional, with certain points where AI is being used,” Arthur D. Little partner Ben van der Schaaf told CNBC last month. “AI is not an end-to-end component yet.”
Novo lost its early lead in the weight loss market and is now trying to regain market share through its Wegovy pill, launched in January, and next-generation drugs in development.