Market Place
Artificial intelligence (AI) is changing the world and bringing
efficiencies across all industries. Pharmaceuticals is one of them. AI can
accelerate drug discovery, streamline clinical trials, and personalize
medicine. It holds the potential to revolutionize the pharma industry.It takes anywhere between 10 to 15 years and around US$ 3 billion to take a new drug from its
discovery phase to the market. AI can drastically cut both the timespan and
costs and bring life-saving yet affordable treatments to the market at a faster
pace. The global AI market in healthcare was estimated to be about US$ 21
billion in 2024 and is expected to grow to over US$ 148 billion by 2029, compounding at an annual
growth rate of 48.1 percent.Drugmakers are eager to ride the AI wave. Players like Bayer, Merck KGaA, Moderna, BMS, Roche, Astellas, Amgen, Eli Lilly, Sanofi, Novo Nordisk and Johnson & Johnson have announced
collaborations, signed deals and entered into partnerships in the AI space.
Many others, such as Exscientia, Insilico, Berg, Nimbus, Recursion, and Pharos iBio, are a step ahead and are holding clinical trials on drugs developed using AI.On its part, the US Food and Drug Administration (FDA) has
recognized the increased use of AI and machine learning (ML) and has reiterated its commitment to ensure the safety and efficacy of drugs “while facilitating innovations in their development.” To this end, the US agency
published a paper in March that lists out its
approach towards the use of AI.Novo, Lilly turn to AI for
drug discovery; AI-based firms sign multiple dealsWith increased adoption of wearable devices, e-health services and
other technology-driven offerings in medicine and healthcare, there is valuable data out there that drugmakers can analyze to get more accurate predictions of a drug’s effects on the human body. Such an analysis speeds up drug development and reduces side effects of therapies. Ergo, several large drugmakers have
signed crucial AI deals. For example, Novo Nordisk has inked a potential US$ 2.7 billion deal with Valo Health to discover and develop novel treatments for cardio-metabolic diseases. The collaboration between the two organizations will leverage the capabilities of Valo’s Opal Computational Platform, including access to real-world patient data, AI-enabled small molecule discovery and Biowire human tissue modeling platform designed to speed up the discovery and development process.Similarly, Eli Lilly has entered into a US$ 494 million deal with Fauna Bio to use the latter’s AI platform — Convergence — for preclinical drug discovery efforts in obesity. Convergence analyzes genomic data from 452 mammal species and various tissue types to
create a comprehensive dataset. By integrating human data and information from
animals with natural disease resistance, the platform can identify potential
drug targets.AI-based pharma firms like Isomorphic Labs and Biolojic are also landing multiple deals. Isomorphic is owned by Google’s parent Alphabet. Along with Google DeepMind, it has created a new AI model that can
accurately predict 76 percent of protein interactions with
small molecules. In January, Isomorphic inked deals with Novartis and Lilly for a combined
value of nearly US$ 3 billion.Biolojic Design uses computational biology and AI to transform
antibodies into programmable, intelligent medicines. Earlier this month, it
announced a multi-target drug discovery collaboration
with Merck KGaA, which includes
antibody-drug conjugates. Biolojic has also inked deals with Teva and Nektar recently.Amgen harnesses generative
biology for protein-based drugs; Sanofi ties up with OpenAIFinding a good protein drug candidate is like finding a needle in
a haystack. Drug developers typically start by looking at proteins in nature and then go through the painstaking process of shaping them into safe and effective drugs.Generative biology is a revolutionary approach to drug discovery
and development that leverages ML and AI to design novel protein therapeutics. Amgen is using generative biology to innovate new protein-based drugs that have desired structures and properties based on existing protein data inputs. In fact, the California-based multinational has said it is “integrating AI across all operational levels.” It has collaborated with PostEra to advance up to five small molecule programs.Amgen is building AI models trained to analyze one of the world’s largest human datasets on an NVIDIA full-stack data center platform, known as DGX SuperPOD, that will be installed at Amgen’s deCODE genetics’ headquarters in Reykjavik, Iceland. This system will be used to build a human diversity atlas for drug target and disease-specific biomarker discovery, providing vital diagnostics for monitoring disease progression and regression.AI can analyze individual data like genetic makeup,
lifestyle and medical history to come up with personalized therapies. Amgen is working on
AI-driven precision medicines, and potentially individualized therapies, at its
Iceland facility.Sanofi too has signed multiple deals in recent months. In May,
the French drugmaker signed a collaboration with ChatGPT maker OpenAI and Formation Bio to build AI-powered software to accelerate drug development. Sanofi is also collaborating with BioMap in a deal that could be
worth up to US$ 1 billion. The deal is expected to
enable superior prediction from limited data in a range
of therapeutic areas, including immunology, neurology, oncology, and rare
diseases.AI tools can create control
arms, digital twins and slash failure rate in clinical trialsTraditional ways of drug development are fraught with challenges,
and 90 percent of drug candidates in clinical trials tend to fail. Major reasons behind this are poor patient cohort selection and recruiting mechanisms, and the inability to monitor patients effectively during trials. AI tools like Trial Pathfinder study real data obtained from patients’ electronic health records and simulate clinical trials for the drug with different eligibility criteria. Trial Pathfinder also calculates trial hazard ratios, a scientific term that compares the survival rates of those given and not given the drug.AI and synthetic data can also be used to create control arms in
clinical trials, which can help speed up the process, reduce costs, and improve
the quality of data. For example, FDA has supported the use of a Medidata Synthetic Control
Arm in a
phase 3 trial of Medicenna’s MDNA55 in recurrent
glioblastoma.In addition to observing real-time patient data, researchers can
also create digital twins, virtual replicas of cells,
organs, or people, which they can use to simulate and predict various clinical
outcomes during a trial.Our viewThe
pharmaceutical industry is on the cusp of a revolution. In the coming years, we
hope to see some tangible results of the efforts being put in by drugmakers, AI
developers and regulatory agencies. The CPhI Annual Report 2023 has predicted
that in 2030, over half of FDA-approved drugs will involve AI in their development and/or manufacturing. The winner, in our view, will be the end-user who will have cheaper, safer and more effective treatments, delivered at a faster pace.
Impressions: 586
https://www.pharmacompass.com/radio-compass-blog/big-pharma-bets-big-on-ai-s-us-148-bn-potential-to-revolutionize-healthcare-industry
#PharmaFlow by PHARMACOMPASS
13 Jun 2024
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In 2016, M&A deals
fell drastically in both numbers and value. One key reason was the falling
through of the Pfizer-Allergan mega merger due to America’s crack down on inversion deals.
The year 2015 went down in
history as a record year for mergers and acquisitions (M&As) in the
pharmaceutical and biotech space, when deals worth US $ 300 billion were
announced.
The
highlight of 2015 was the mega-merger announced between US drugmaker Pfizer and
Ireland-based Allergan – the biggest-ever pharma transaction that
was worth more than US$ 160 billion.
2016 saw Pfizer and Allergan walk away from their US$ 160 billion merger when the new US
Treasury rules cracked down on inversion deals that were encouraging US
companies to move overseas to cut taxes.
The merger would have allowed
New York-based Pfizer to cut its tax bill by an estimated US$ 1 billion
annually by domiciling in Ireland, where tax rates are lower.
M&A deals dip by 20
percent in 2016
Although the Pfizer-Allergan
mega-merger did not go through, The Pharma Letter tracked transactions through the year and noted that although “worldwide merger and acquisition activity in the pharmaceutical and biotechnology sector in 2016 was plentiful”, the numbers and values were “well down” on those seen in the previous two years.
The number of transactions announced in 2016 was 130, compared to 166 M&A deals in 2015 – which was a record year – and 137 in 2014, says The Pharma Letter.
Values of the top 10 deals
drop to a third
The other crucial fact about
M&A deals in 2016 was that transactions that exceeded the US$ 1 billion
mark were down to just 23 in 2016, as against 30 in 2015 and 26 in 2014.
The Pharma Letter quotes a
KPMG report published earlier this year which notes that the total value of the
top 10 completed deals in the first half of 2016 amounted to US $ 67.2 billion
as opposed to US $190.4 billion in first-half 2015.
Sanofi-Actelion — the deal that wasn’t
Sanofi made headlines, not for the acquisitions it made, but for the ones it wasn’t able to close.
Late last year, the French
pharma giant was widely identified as the big player that managed to push Johnson & Johnson away from negotiations with Actelion only to lose its US$ 30 billion bid to J&J even though it would have delivered “approximately equivalent value to Actelion’s shareholders”.
The Actelion loss came after Sanofi was out bid by Pfizer for Medivation.
Pfizer agreed to buy the US
cancer drug company for US$ 14 billion in cash, adding its blockbuster prostate
cancer drug Xtandi to
the company's growing oncology roster.
Additionally, Pfizer acquired Anacor for US$ 5.2 billion to add an eczema gel to its portfolio.
Bayer’s US$ 66 billion takeover
The biggest deal announced in
2016 was Bayer’s US$ 66 billion takeover of the US seeds company Monsanto after months of wrangling. It was the German drug and crop-chemical company’s third offer that clinched the deal, which is also known to be the largest all-cash deal on record.
This signature
deal has disrupted the agribusiness sector, which in recent years has been
involved in a consolidation race largely triggered by factors such as shifting
weather patterns, intense competition in grain exports and a souring global
farm economy.
Top pharma companies by sales
Bayer’s acquisition of Monsanto makes the ranking of top pharmaceutical companies consistently complicated since Bayer will generate more sales from its crop
science and high-tech polymer division than from the sale of prescription
drugs.
Should divisions like
diagnostics, animal health, vaccines, consumer health be counted while
determining the size of a pharmaceutical company?
In a volatile global world,
where wild exchange rate fluctuations play their own major role in determining
the size of organizations, this week PharmaCompass
shares the revenues, as presented in the 2016 annual reports of top 15
companies, so that you can draw your own conclusions on the top drug companies
of the world.
Company Name
Currency
Pharma
Consumer Health
Medical Devices/ Diagnostics
Vaccines
Animal Health
Other Revenues
Total Sales
1
Pfizer
USD
41,600
3,407
6,071
1,746
52,824
2
Novartis
USD
48,518
48,518
3
Roche
CHF
41,047
11,589
52,636
4
Merck & Co.
USD
29,360
5,791
3,478
1,178
39,807
5
GlaxoSmithKline
GBP
16,104
7,193
4,592
27,889
6
Johnson & Johnson
USD
33,464
13,307
25,119
71,890
7
Sanofi
EUR
22,932
3,330
4,577
2,708
274
33,821
8
Gilead
USD
29,953
437
30,390
9
Abbvie
USD
25,560
78
25,638
10
Bayer
EUR
16,420
6,037
1,523
22,789
46,769
11
Amgen
USD
21,892
1,099
22,991
12
Astrazeneca
USD
21,319
1,683
23,002
13
Teva
USD
20,664
1,239
21,903
14
Eli Lilly
USD
18,064
3,158
21,222
15
Bristol-Myers Squibb
USD
17,702
1,725
19,427
Sales figures are reported in millions.
Currency exchange rate used CHF: 0.99 USD/ EUR: 1.06 USD / GBP: 1.25 USD
Ranking methodology
When it came to ranking
companies, based on their total sales, we at PharmaCompass did
not face any challenges while including the sales of prescription drugs along
with those of vaccines.
But matters got a little
complicated when we got down to ranking consumer health divisions.
For instance, while we have
included consumer health divisions of companies like Sanofi, GSK and
Bayer, which primarily sell OTC drug products (such as brands like Allegra, Voltaren and Aleve), we have excluded those of companies like Johnson
& Johnson, given their focus on baby and beauty products.
Such a demarcation — based on the focus of the company — will always be a matter of debate.
Similarly, revenue generated
from the sale of medical devices/diagnostics as well as revenues of animal health divisions were not included in our rankings.
In the case of companies like Bayer, whose Covestro’s division has over US$ 10 billion in sales from customer industries such as automotive, construction, electrical and electronics, and furniture, such sales were accounted for in ‘other revenues’.
Our table highlights the sales
revenue of various divisions of companies in order to bring more clarity into the
figures which were included in our rankings.
Impressions: 13606
https://www.pharmacompass.com/radio-compass-blog/top-15-pharmaceutical-companies-by-drug-sales-in-2016
#PharmaFlow by PHARMACOMPASS
02 Mar 2017
