Google's AI Spin-Off Isomorphic Labs Strikes Big Pharma Deals, Paving the Way for Future of Drug Discovery
Portfolio Pulse from Anusuya Lahiri
Isomorphic Labs, an Alphabet Inc spin-off, has partnered with Eli Lilly and Novartis AG for AI-driven drug discovery. The deals are valued at around $3 billion, with Isomorphic receiving $45 million upfront from Eli Lilly and potentially $1.7 billion in milestones, and $37.5 million upfront from Novartis with up to $1.2 billion in incentives. Isomorphic uses DeepMind's AlphaFold 2 AI for predicting protein structures, aiding in drug design. Despite a £2.4 million loss in 2021, Isomorphic is expanding, including a new Swiss office. Google Cloud also launched AI tools for healthcare data consolidation.
January 08, 2024 | 12:58 pm
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Alphabet's spin-off Isomorphic Labs has secured deals with Eli Lilly and Novartis AG, potentially boosting Alphabet's revenue and showcasing the commercial application of its AI technology.
The partnerships with major pharmaceutical companies highlight the commercial viability of Alphabet's AI technology, which could lead to increased investor confidence and a positive impact on Alphabet's stock in the short term.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Alphabet's spin-off Isomorphic Labs has secured deals with Eli Lilly and Novartis AG, potentially boosting Alphabet's revenue and showcasing the commercial application of its AI technology.
The partnerships with major pharmaceutical companies highlight the commercial viability of Alphabet's AI technology, which could lead to increased investor confidence and a positive impact on Alphabet's stock in the short term.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Eli Lilly's partnership with Isomorphic Labs to leverage AI for drug discovery could enhance its R&D capabilities and lead to new revenue streams if successful drugs are developed.
The collaboration with Isomorphic Labs may be seen as a strategic move to strengthen Eli Lilly's drug discovery pipeline, which could positively influence its stock price in the short term as investors anticipate potential breakthroughs.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Novartis AG's deal with Isomorphic Labs for AI-driven drug discovery could accelerate its R&D process and lead to future revenue growth upon successful drug development.
The partnership with Isomorphic Labs is expected to enhance Novartis's R&D efficiency, which may be viewed positively by investors, potentially leading to a short-term uptick in Novartis's stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70