Race for AI-developed drugs heats up: Wegovy-maker Novo Nordisk ties up with OpenAI after rival Eli Lilly seals deal
Danish drugmaker Novo Nordisk announced Tuesday that it is collaborating with ChatGPT’s parent company, OpenAI, to bring “new and better treatment options to patients faster.” CNBC reported.
Novo Nordisk said in a statement that its partnership with OpenAI, led by Sam Altman, will enable the drugmaker to better use artificial intelligence (AI) to analyze complex data sets, help identify promising new drugs and shorten the time it takes for a drug to move from research to patient use.
Pilot programs in research and development, production and commercial operations will be launched with full integration by the end of 2026, Wall StreetJournal reported.
“There are millions of people living with obesity and diabetes who need treatment options, and we know there are treatments still waiting to be discovered that could change their lives,” said Mike Doustdar, CEO of Novo. “Integrating AI into our daily work gives us the ability to analyze datasets at a previously impossible scale, identify patterns we can’t see, and test hypotheses faster than ever before.”
Responding to the collaboration, OpenAI CEO Altman said, “AI is reshaping industries and life sciences and can help people live better and longer.”
Pharmaceutical manufacturers look to AI to improve operations
According to the report, this development comes at a time when pharmaceutical manufacturers are turning to artificial intelligence to improve their operations and long processes. While artificial intelligence can discover new treatments, experts argue that the industry is far from fully realizing its capabilities. In the near term, more practical benefits may arise from applying AI to other parts of drug development; for example, speeding up the time-consuming process of finding suitable patients and sites for clinical trials.
Clinical trials are still largely designed and conducted using traditional methods, according to one expert; AI is being implemented only at certain stages. The expert added that the industry has not yet fully explored the impact of artificial intelligence and has not yet been integrated as an end-to-end solution.
According to a Reuters According to the report, pharmaceutical manufacturers are increasingly turning to artificial intelligence to improve their research and development, relying on advanced modeling tools and automated laboratories to increase efficiency across production lines.
Novo Nordisk partners with Nvidia
The Danish drugmaker’s partnership with OpenAI is an extension of the company’s latest AI initiatives; These initiatives also include a collaboration with chipmaker Nvidia to use Gefion’s standalone AI supercomputer to “accelerate drug discovery efforts through innovative AI use cases.” According to the report, the companies said they plan to create customized AI models and agents in 2025 that the drugmaker can use for early research and clinical development.
Novo Nordisk vs Eli Lilly
The Danish drugmaker is in close competition with US rival Eli Lilly for leadership in the highly profitable weight-loss market, where it has already lost the lead. The company is now trying to regain market share with the Wegovy pill, which it launched in January, and by developing next-generation treatments.
Eli Lilly signs deal to bring AI-developed drugs to market
In March, US drugmaker and Nordisk rival Eli Lilly signed a $2.75 billion deal with Insilico Medicine to bring AI-developed drugs to the global market. Under the agreement, Insilico Medicine will receive $115 million up front, with additional payments contingent on regulatory approvals and commercial milestones, as well as royalties on future sales.
