Pharmaceutical giants are turning to artificial intelligence (AI) to combat falling revenues from expiring patents on top drugs. Deals between pharma and AI companies aim to boost R&D and replenish drug pipelines. The patent cliff from 2024 to 2030 will see a global revenue loss of $236bn in the US alone.

AI is viewed as a way to enhance internal R&D productivity in big pharma, shifting towards a more consistent flow of assets. AI-driven tools are sought to accelerate drug development and cut costs. In Silico’s AI-developed drug showed promise in a Phase IIa study for idiopathic pulmonary fibrosis.

Pharma companies like Eli Lilly and AstraZeneca are investing in AI capabilities to replenish portfolios before patent expiries impact revenue. The focus is shifting towards targeted acquisitions of reliable assets rather than desperate M&A. AI’s role is expanding beyond innovation theatre to enhance drug pipelines.

AI-enabled drug developer Valo Health is using AI to uncover complex causes of disease, attracting interest from pharma companies like MSD. AI may be a key component of evolving pipeline strategies, with a focus on smaller asset-specific acquisitions. The landscape of big pharma is changing to adapt to the patent cliff and shifting revenue sources. Major developers in the pharmaceutical industry are looking to diversify and reduce reliance on blockbusters by exploring cardio-metabolism, immunology, and other therapy areas. Big pharma is also utilizing traditional strategies like expanded US labels and secondary patents to combat patent cliffs. AI is seen as a transformative tool to address patent cliff challenges, but its limitations are acknowledged by experts. While some believe AI could render patent cliffs obsolete, others are more cautious, suggesting AI may ease falling revenues into gentler slopes rather than abolishing them completely.

Read more at Yahoo Finance: Pharma eyes AI deals to stem lost revenues from patent expirations