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A year in review: AI’s evolving role in drug discovery and development in 2023

[Image courtesy of ipopba via iStock Photo]

In the realm drug discovery, AI is making waves, and 2023 could potentially be a pivotal year for this technology. As the technology enters the popular consciousness, pharma employees are wondering “why they can’t have similar AI-driven tools for their professional tasks,” said Diane Wuest, head of digital R&D at Sanofi, in a recent interview.

Still, some executives at pharma companies worry about AI’s potential to generate misleading data, as the Economist notes. Such fears are not entirely unfounded. While most headlines continue to tout AI’s promise in the field, there was a notable failure in 2023: an AI-aided drug failed a pair of phase 3 trials.

This article provides an overview of AI’s increasing traction in drug discovery and development in 2023 from January to early August. We’ll update it as the year progresses.

Janua…

Sanofi, Merck and Novartis top pharma M&A in recent years

Despite a temporary slowdown during the early days of the pandemic, the pharma sector has witnessed a steady rise in M&A activity over the years. The number of deals climbed from 23 in 2018 to 43 in 2022. Major players driving this trend include Sanofi, Merck & Co. and Novartis. Those three players have made significant acquisitions to bolster core assets and capabilities in specialized areas such as immunology, oncology and gene therapy.

For instance, in 2022, Merck acquired Prometheus Biosciences for $11 billion to strengthen its presence in immunology, while Sanofi purchased Provention Bio for roughly $2.9 billion to add a first-in-class therapy for type 1 diabetes. Novartis has also been on the hunt, with approximately $31 billion in deals since 2018 that have strengthened its Innovative Medicines portfolio.

Bar chart showing the top 10 most active pharmaceutical companies in M&A activity fr…

Novartis to spend up to $3.5 billion to acquire Chinook amid pharma M&A upsurge in 2023

Eyeing the booming renal therapeutics market, Swiss pharmaceutical giant Novartis AG plans to spend up to $3.5 billion on Chinook Therapeutics. The deal marks the latest in a string of high-profile mergers and acquisition (M&A) deals in the pharma sector over the past roughly half year.

Chinook’s kidney disease specialization in the Novartis M&A equation

At the heart of the deal is Chinook’s specialization in precision medicines for kidney disease.

The rising prevalence of chronic kidney disease, which affects roughly 10% of the global population, according to the National Kidney Foundation, underscores the urgency of addressing renal disorders.

The growing prevalence of diabetes, a core contributor to the rise of renal disorders, has stimulated the market for therapies for chronic kidney disease.

This bar chart shows Novartis acquisitions over the past three years. The transaction amou…