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Stock impact report

Why OpenAI's drug royalties deal won't work [Yahoo! Finance]

Sanofi - American Depositary Shares (SNY) 
US:NYSE Investor Relations: sanofi.com/en/investors
Company Research Source: Yahoo! Finance
OpenAI's software for free to biotech companies in exchange for royalties on any drugs they might develop. It's not going to work. Biotech companies are doing a lot of innovative things with AI, including drug discovery. You can essentially ask AI to come up with candidates for potential drugs that likely won't be toxic to humans, and AI can generate lots of them. In phase 1 drug trials, which test drugs for safety, these AI-created drugs are generally more successful than traditional, human-generated candidates. But they aren't actually any more likely to reach FDA approval than the old kind of drugs. In other words, drug discovery is not actually the bottleneck in medicine. Trials are. There's a term for this: Eroom's Law (Moore's Law spelled backwards). The cost of drug trials keeps going up, while success rates are going down. The problem is the AI models that help come up with drug candidates are still very inaccurate, largely because the data used to train these models is Show less Read more
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