Finding a potential blockbuster medicine typically takes years of extensive analysis in the laboratory, with teams of researchers methodically sifting through data and test results to unearth a promising candidate. But when Japan’s Takeda Pharmaceutical Co. bought an experimental psoriasis drug for $4 billion from a Boston startup in February, it gained a compound selected in only six months by using artificial intelligence.
In coming months, the drug—picked out of thousands of potential molecules through AI and machine learning algorithms—will progress to the final stages of clinical trials. If successful, it could become one of the first therapies discovered with the help of AI. Analysts at Jefferies estimate it could generate as much as 500 billion yen ($3.7 billion) in annual sales.
The Japanese drugmaker’s push comes at a time when pharma companies globally are embracing AI by striking deals with computer-savvy startups and adding more data scientists of their own. Their hope is to cut costs and speed up time to market. Morgan Stanley estimates that over the next decade, the use of AI in early-stage drug development could translate into an additional 50 novel therapies worth more than $50 billion in sales.
