Deep Pharma Intelligence AI in Pharma Market Webinar Summary

        - Kate Batz, Managing Partner, Deep Knowledge Group

 

On March 2 and 3, 2021, I had the pleasure of hosting one of two virtual events focused on key market trends, events, and investor takeaways in the AI in Pharma sector alongside my co-host, Franco Cortese (Director of Aging Analytics Agency), where we were joined by a number of industry experts to present and discuss the increasing market maturation of the AI in Pharma space, from both a collaboration and partnership perspective, as well as an investment, deal-flow, M&A and IPO point of view.

 

The events were organized by Deep Pharma Intelligence, a leading provider of open source and proprietary analytics in the Pharmaceutical and AI in Pharma industry, and a new joint venture formed between Deep Knowledge Group’s DeepTech-focused analytical subsidiary, Deep Knowledge Analytics, and Biopharma Trend.

 

Day 1 (Top AI in Pharma Deals, Trends & Partnerships 2020-Q1 2021) featured presentations and a roundtable discussion on the biggest deals, partnerships, collaborations, and industry events in the AI in Pharma sector from 2020 - 2021.

Day 2 (Investment and M&A Deals: AI in Pharma Market 2021) featured talks and a panel discussion on key players, trends in the private equity and venture capital ecosystem, focusing on the increasing market maturation of AI in Pharma, and key take-aways for investors in 2021.

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Key Take-Aways & Conclusions From the Events

 

  • While global pandemics appeared to be a hard blow for the majority of economic sectors, the BioTech market saw industry developments and investments actually rise as a result — not only reaching record-breaking values for the BioTech stock index, but also showing extraordinary deal-making activity in the areas of venture capital investment and initial public offerings (IPOs). 

  • The rising trends was also observed for the sector of pharmaceutical artificial intelligence (AI) — a rapidly expanding sector involving large corporations, AI-driven biotechs, and investment bodies specifically focused on data-driven drug discovery startups. 

  • It is very clear that the AI in Pharma sector is heating up, and is approaching a period of market maturation and consolidation, where a number of AI-startups have achieved substantial leadership and grew in resources and technology, while others have lagged behind, being forced to focus on niche service-oriented segments of drug discovery. Several AI startups also went out of business, and others were acquired.

  • The total amount of VC funding in AI-biotech startups increased in 2020 by around 23%, compared to 2019, approaching a total of $1.9B, which is also more than in 2015, 2016, and 2017 combined. 

  • Meanwhile, we are seeing an increasing number of late-stage mega-rounds (e.g. B, C, Pre-IPO), including hundreds of millions, which reflects the increasing quality of players in this market, with strong business models, outstanding deal-making traction, and cutting-edge research. 

  • The market capitalization growth dynamics in the sector of AI-driven corporations significantly outperforms the global market  (represented as S&P 500 index), as well as aggregate biotech industry indices (IBB and NBI). At the same time, the segment of AI-driven pharma companies is more volatile compared to the industry average. 

  • After a paradoxically bullish year for the biotech industry, the market may see possible correction over the first half of 2021. However, the sector of pharmaceutical AI will likely outperform the general market and will continue its growth trajectory. 

  • This is explained by a systemic nature of value AI is bringing to the table — every large pharma organization is now prioritizing this technology as a strategic component in their model of innovation, driving the overall sector growth, further increase in the number of transactions and R&D collaborations, and an approaching wave of merger & acquisitions. This also stimulates investors to continue being bullish about allocating capital for AI-driven biotechs.

  • However, as the market moves towards consolidation, it is clear that its overall continued positive trajectory and stability require proportionate innovations in terms of AI, data-driven approaches to industry analytics, and InvestTech.

  • Complex and multidimensional markets require equally complex approaches for strategic decision making, and if investors, tech corporations, and pharma corporations seek to establish market dominance in the rising megatrend of AI in Pharma, they need to embrace equally sophisticated and innovative toolsets for strategy formulation and execution. 

  • As Deep Pharma Intelligence has proven, those toolsets are already here, ready to be embraced and on-boarded, and the market players that do so in practice will become the future successors of the Pharma industry as a result.

Day 1: Top AI in Pharma Deals, Trends & Partnerships 2020-Q1 2021 (March 2, 2021)

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Top AI in Pharma Deals, Trends & Partnerships 2020-Q1 2021 featured presentations and a roundtable discussion on the biggest deals, partnerships, collaborations, and industry events in the AI in Pharma sector from 2020 - 2021, as well as key findings and takeaways from Deep Pharma Intelligence's newest special analytical case study:

www.deep-pharma.tech/pharma-ai-deals

 

The event featured presentations and a roundtable discussion with: 

  • Ihor Kendiukhov (Head of Algorithmic Analytics, Deep Knowledge Group)

  • Dr. Andrii Buvailo (Director, Deep Pharma Intelligence)

  • Franco Cortese (Director, Aging Analytics Agency)

  • Special Guest Christopher Trummer (CEO, CelrisTx)

Ihor Kenduvov – Algorithms and Data for DeepTech Investment Analytics

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Ihor’s presentation focused on a showcase of Deep Pharma Intelligence’s prototype Big Data Analytics Investment Dashboard, highlighting key use cases and major functionalities. Some of the main conclusions and take-aways from his presentation included:

 

  • Deep Pharma Intelligence offers a state-of-the-art interactive online AI-based SWOT analysis system covering most of the deals in the AI-Pharma industry.

  • The product allows to conduct initial data-driven due diligence of the deals instantly, automatically, and holistically by comparing multiple parameters for each company combined in the 12 vectors of R&D and business development. The results of the analysis are represented in the easily perceived form of 2-dimensional and 3-dimensional radar charts.

  • Smart competitor matching, calculation of the distance between companies can be applied to estimate the prospects and the relevance of the deals in the industry;

  • The platform enables investors or competitors to evaluate the prospects of the deal by looking at the place of the company in the industrial networks, including collaborations, partnerships, funding rounds, scientific cooperation, connections of R&D teams and higher management, and the level of the similarity of the markets.

  • Both conventional econometric models and advanced artificial intelligence and deep learning tools are applied to extract value from stock market data for the assessment of the deals from the standpoint of publicly traded corporations.

  • Financial analytics is combined with technological evaluation of the companies.

  • Stock market simulations enable us to test various trading strategies and investment principles.

Dr. Andrii Buvailo – Biggest Deals, Partnerships & Collaborations 2021

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During his talk, Dr. Buvailo shared highlights from Deep Pharma Intelligence’s industry report

“Pharmaceutical Artificial Intelligence: Deals and Market 2020-2021”:

https://www.deep-pharma.tech/pharma-ai-deals

 

Key takeaways and conclusions from his presentation included:

 

  • 7 AI in Pharma IPOs in 2020 (including Lantern Pharma, Relay Therapeutics, Abcellera, Schrodinger, and Berkeley Lights).

    • Nanna Therapeutics acquired by Astellas to leverage AI and unique screening platform has great potential to create novel programs, leading to maximization of mitochondria-related research

    • Haystack Sciences acquired by Insitro to add AI in DNA-encoded libraries (DELs) screening and analysis capabilities

    • Roivant Sciences to absor Silicon Therapeutics with $450M-plus deal

  • Over $2.1 billion of venture capital raised in 2020-2021. Major deals included:

    • Insitro with their $143 million (Series B);

    • XtalPi with $319 million (Series C);

    • Atomwise with $123 million (Series B);

    • Recursion Pharmaceuticals with $239 million (series D);

    • AbCellera with the sum of $105 million (Series B). Completed IPO in December with $555.5 million in proceeds

    • (2021) Cellarity with $123 million (Series A)

    • (2021) Valo Health $190 million (Series B)

  • 2020-2021 also saw several major R&D partnerships and collaborations established, including:

    • October 2019: Insilico Medicine has inked a dual-program drug discovery deal with Jiangsu Chia Tai Fenghai Pharmaceutical (CTFH) worth up to $200 million.

    • January 2020: Bayer and British biotech firm Exscientia have announced a three-year partnership focused on the use of Artificial Intelligence in cardiovascular and oncology drug discovery.

    • March 2020: Atomwise and Bridge Biotherapeutics Sign $1 billion deal to unlock blockbuster potential in Inflammation

    • September 2020: Recursion Pharmaceuticals entered drug discovery R&D partnership with Bayer up to $100 million.

    • October 2020: Insitro signs five-year discovery collaboration with Bristol Myers Squibb to develop novel treatments for ALS and Frontotemporal Dementia, $50 million in upfront cash with total potential deal value over $2.1 billion. 

Franco Cortese – How COVID-19 is Fueling BioTech Industry Growth

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Franco Cortese’s presentation focused on the ways in which the current COVID-19 pandemic is actually serving to fuel accelerated BioTech industry activity and growth. Some of the key takeaways from his talk included:

  • It’s clear that the COVID-19 pandemic is at least in part fueling this overall growth in Healthcare and BioTech focused funding and industry activity, as it continues to accelerate government and industry cooperation and the speed of drug and diagnostic development, and as it continues to push the importance of health to the forefront of the public’s mind.

  • This is clearly true both for BioTech generally, and for the Longevity Industry, which in 2020 saw its total volume investments exceed the $156 billion mark, of which $60B were raised during the last year alone.