Frost Radar™: Artificial Intelligence-enabled Drug Discovery in the Global Pharmaceutical Industry, 2021
Published on: 23-Jun-2021 | SKU: HC03422-GL-MR_25520

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Pharmaceutical drug discovery and development suffers from declining success rates with new molecules, and the rate of return has shrunk from 16% in 2011 to almost 11% in 2018. Frost & Sullivan finds that traditional solutions focused primarily on data from limited sources and rule-based computational techniques used to address the understanding of targets and leads are inefficient.

Artificial intelligence (AI) is set to transform the landscape of drug discovery. The application of AI-based products and solutions is enabling the pharmaceutical industry to shorten discovery timelines, enhance process agility, increase prediction accuracy on the efficacy and safety of drugs, and improve the opportunity to diversify drug pipelines using a cost-effective model.

Most vendors are focused on collecting, creating, and augmenting data from across laboratories, clinical trials, real-world evidence, biobanks, and repositories. The increasing volume and veracity of clinical and research data compels traditional providers to leverage enabling tools and technologies such as cloud computing, artificial intelligence (AI), machine learning (ML), natural language processing (NLP), and advanced analytics to make a shift from the slow, traditional approach to a relatively fast, rational data-driven drug discovery and development approach.

To remain competitive it is critical for players to establish the right balance of data, AI, and computational capability and to match it with the wet-lab capability. There remains inadequate understanding of the biological networks and drug-target interactions; here, AI has been able to support the identification and prioritization of disease-specific therapeutic targets based on gene-disease associations. Such results must be replicated and validated through in-vitro experiments and in-vivo models.

Frost & Sullivan finds that the impact of AI on the complete pharma value chain can more than double what is achievable using traditional analytics and capture between 2 and 3% of industry revenue, amounting to more than $50 billion in potential annual impact.

This Frost Radar™ recognizes industry participants that are at the forefront of developing and successfully employing advanced tools. This industry-first benchmarking study provides an introduction to the ecosystem and recognizes pioneering companies. The Radar™ reveals the market positioning of each company using its Growth and Innovation scores as highlighted in the Frost Radar™ methodology. The document presents competitive profiles on each company based on its strengths, opportunities, and market positioning. We discuss strategic market imperatives and the competitive environment that vendors operate in as well as make recommendations for each provider to spur growth.

Author: Amol Dilip Jadhav

Strategic Imperative

Strategic Imperative (continued)

Growth Environment

Frost Radar™: Artificial Intelligence-enabled Drug Discovery in the Global Pharmaceutical Industry

Frost Radar™: Competitive Environment

Frost Radar™: Competitive Environment (continued)

Frost Radar™: Competitive Environment (continued)

Frost Radar™: Competitive Environment (continued)

AbCellera Biologics, Inc.

AI Therapeutics, Inc.

Atomwise

BenevolentAI

BERG Health

Black Diamond Therapeutics

Cellarity

EQRx

Evaxion Biotech

Exscientia Ltd.

Healx

Insilico Medicine

Insitro

Recursion

Relay Therapeutics

Schrödinger

twoXAR

Valo Health

Strategic Insights

Significance of Being on the Frost Radar™

Frost Radar™ Empowers the CEO’s Growth Team

Frost Radar™ Empowers Investors

Frost Radar™ Empowers Customers

Frost Radar™ Empowers the Board of Directors

Frost Radar™: Benchmarking Future Growth Potential

Frost Radar™: Benchmarking Future Growth Potential

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Frost Radar™: Benchmarking Future Growth Potential 2 Major Indices, 10 Analytical Ingredients, 1 Platform

Growth Index

Growth Index (GI) is a measure of a company’s growth performance and track record, along with its ability to develop and execute a fully aligned growth strategy and vision; a robust growth pipeline system; and effective market, competitor, and end-user focused sales and marketing strategies.

  • Market Share (previous 3 years)
    This is a comparison of a company’s market share relative to its competitors in a given market space for the previous 3 years.
  • Revenue Growth (previous 3 years)
    This is a look at a company’s revenue growth rate for the previous 3 years in the market/industry/category that forms the context for the given Frost Radar™.
  • Growth Pipeline
    This is an evaluation of the strength and leverage of a company’s growth pipeline system to continuously capture, analyze, and prioritize its universe of growth opportunities.
  • Vision and Strategy
    This is an assessment of how well a company’s growth strategy is aligned with its vision. Are the investments that a company is making in new products and markets consistent with the stated vision?
  • Sales and Marketing
    This is a measure of the effectiveness of a company’s sales and marketing efforts in helping it drive demand and achieve its growth objectives.

Innovation Index

Innovation Index (II) is a measure of a company’s ability to develop products/ services/ solutions (with a clear understanding of disruptive Mega Trends) that are globally applicable, are able to evolve and expand to serve multiple markets and are aligned to customers’ changing needs.

  • INNOVATION SCALABILITY
    This determines whether an organization’s innovations are globally scalable and applicable in both developing and mature markets, and also in adjacent and non-adjacent industry verticals.
  • RESEARCH AND DEVELOPMENT
    This is a measure of the efficacy of a company’s R&D strategy, as determined by the size of its R&D investment and how it feeds the innovation pipeline.
  • PRODUCT PORTFOLIO
    This is a measure of a company’s product portfolio, focusing on the relative contribution of new products to its annual revenue.
  • MEGATRENDS LEVERAGE
    This is an assessment of a company’s proactive leverage of evolving, long-term opportunities and new business models, as the foundation of its innovation pipeline.
  • CUSTOMER ALIGNMENT
    This evaluates the applicability of a company’s products/services/solutions to current and potential customers, as well as how its innovation strategy is influenced by evolving customer needs.

Significance of Being on the Frost Radar™

Companies plotted on the Frost RadarTM are the leaders in the industry for growth, innovation, or both. They are instrumental in advancing the industry into the future.

  • GROWTH POTENTIAL
    Your organization has significant future growth potential, which makes it a Company to Action.
  • BEST PRACTICES
    Your organization is well positioned to shape Growth Pipeline™ best practices in your industry.
  • COMPETITIVE INTENSITY
    Your organization is one of the key drivers of competitive intensity in the growth environment.
  • CUSTOMER VALUE
    Your organization has demonstrated the ability to significantly enhance its customer value proposition.
  • PARTNER POTENTIAL
    Your organization is top of mind for customers, investors, value chain partners, and future talent as a significant value provider.

Have questions about this research or need deeper insights?
Speak directly with our analytics experts for tailored recommendations.
Purchase includes:
  • Report download
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Growth Dialog™

A tailored session with you where we identify the:
  • Strategic Imperatives
  • Growth Opportunities
  • Best Practices
  • Companies to Action

Impacting your company's future growth potential.

Pharmaceutical drug discovery and development suffers from declining success rates with new molecules, and the rate of return has shrunk from 16% in 2011 to almost 11% in 2018. Frost & Sullivan finds that traditional solutions focused primarily on data from limited sources and rule-based computational techniques used to address the understanding of targets and leads are inefficient. Artificial intelligence (AI) is set to transform the landscape of drug discovery. The application of AI-based products and solutions is enabling the pharmaceutical industry to shorten discovery timelines, enhance process agility, increase prediction accuracy on the efficacy and safety of drugs, and improve the opportunity to diversify drug pipelines using a cost-effective model. Most vendors are focused on collecting, creating, and augmenting data from across laboratories, clinical trials, real-world evidence, biobanks, and repositories. The increasing volume and veracity of clinical and research data compels traditional providers to leverage enabling tools and technologies such as cloud computing, artificial intelligence (AI), machine learning (ML), natural language processing (NLP), and advanced analytics to make a shift from the slow, traditional approach to a relatively fast, rational data-driven drug discovery and development approach. To remain competitive it is critical for players to establish the right balance of data, AI, and computational capability and to match it with the wet-lab capability. There remains inadequate understanding of the biological networks and drug-target interactions; here, AI has been able to support the identification and prioritization of disease-specific therapeutic targets based on gene-disease associations. Such results must be replicated and validated through in-vitro experiments and in-vivo models. Frost & Sullivan finds that the impact of AI on the complete pharma value chain can more than double what is achievable using traditional analytics and capture between 2 and 3% of industry revenue, amounting to more than $50 billion in potential annual impact. This Frost Radar™ recognizes industry participants that are at the forefront of developing and successfully employing advanced tools. This industry-first benchmarking study provides an introduction to the ecosystem and recognizes pioneering companies. The Radar™ reveals the market positioning of each company using its Growth and Innovation scores as highlighted in the Frost Radar™ methodology. The document presents competitive profiles on each company based on its strengths, opportunities, and market positioning. We discuss strategic market imperatives and the competitive environment that vendors operate in as well as make recommendations for each provider to spur growth. Author: Amol Dilip Jadhav
More Information
Deliverable Type Frost Radar
No Index No
Podcast No
Author Amol Dilip Jadhav
Industries Healthcare
WIP Number K616-01-00-00-00
Is Prebook No
GPS Codes 9600-B1,9611-B1

Frost Radar™: Artificial Intelligence-enabled Drug Discovery in the Global Pharmaceutical Industry, 2021

HealthcareFrost Radar™: Artificial Intelligence-enabled Drug Discovery in the Global Pharmaceutical Industry, 2021

A Benchmarking System to Spark Companies to Action—Innovation that Fuels New Deal Flow and Growth Pipelines

RELEASE DATE
23-Jun-2021
REGION
Global
Deliverable Type
Frost Radar
Research Code: K616-01-00-00-00
SKU: HC03422-GL-MR_25520
AvailableYesPDF Download
$4,950.00
In stock
SKU
HC03422-GL-MR_25520