Biopharma R&D faces challenges like low productivity and long timelines. To address these, companies are turning to digital health innovations like AI, particularly generative AI, which shows promise in enhancing R&D efficiency.
Biopharma R&D has historically grappled with low productivity, high failure rates, and protracted development timelines. With patent cliffs looming and the need to replenish drug pipelines pressing, biopharma companies are intensifying efforts to enhance the efficiency and efficacy of their R&D operations.
The maturation of digital health innovations offers a glimmer of hope. Artificial intelligence (AI) solutions, notably generative AI, are showcasing considerable promise in bolstering R&D productivity. In this context, Pharma AI Partnership Growth between 2018 and 2023 has surged by 3.9 times, with a notable shift towards Research Solutions and a significant adoption rate of AI and Generative AI, contributing to enhanced productivity in Pharma collaborations.
Between 2018 and 2023, partnerships surged by 3.9 times, shifting focus towards Research Solutions. With 76% adoption, AI and Generative AI enhance productivity.
Initially, partnerships predominantly centred around Patient Solutions and Medical Diagnostics (accounting for 45% in 2018). However, by 2023, the focus shifted significantly toward Research Solutions, constituting 32% of partnerships. This strategic shift has led to enhanced clinical development productivity.
To further boost productivity, ventures are increasingly adopting Artificial Intelligence (AI) and Generative AI solutions. In Research Solutions, 76% of ventures utilize AI and GenAI.
The top 20 Biopharma companies (based on 2022 sales) account for 40% of all partnerships in this sector. The remaining 60% of partnerships are distributed among over 350 other Biopharma companies.
Ventures have progressed beyond prototypes and proof-of-concept (POC) stages. In the Research Solutions domain, 44% of ventures exhibit Clinical Strength (Evidence Signal > 40). Clinical Strength underscores the tangible impact of a venture’s Digital Health solution on patient outcomes.
Financial pressure remains high in the Digital Health ecosystem. Globally, among Research Solutions ventures, only a third or fewer of Growth-Stage ventures in North America and Asia Pacific have secured funding in the past 18 months, indicating relatively weak funding strength. In contrast, 75% of European-founded ventures have successfully raised funding.
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