AI Revolutionizing Biopharma: Faster, Better, Cheaper

2026-05-05 08:30:00 ET

Overview

If there is any industry that could benefit most from AI, I think it's biopharma ( XLV ) ( VHT ) ( IYH ). Right now, these companies are spending nearly $1 billion to develop each drug over the course of several years. Once these products pass multiple tests and get the approval from the FDA, they then have to compete with several other drugs. There's no guarantee of success. To make matters worse, it's only several more years before these drugs lose their exclusivity. Then generics/biosimilars reach the market and erode prices and market share. In fact, if you do the math on a risk-adjusted basis, the net present value, particularly in early-stage assets, doesn't add up....

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