"AI Breaks Barrier in Commercial Pharma with Groundbreaking Algorithm"

Pharmaceutical Industry Faces Dual Challenge: Soaring Costs and Patent Expirations The pharmaceutical industry is grappling with a dual challenge of soaring costs and patent expirations, threatening to erode billions in potential sales by 2030. According to estimates, around $300 billion in revenue could be lost due to generic alternatives entering the market as patents expire (Source: MIT Technology Review). This trend is particularly concerning for companies that have invested heavily in developing new drugs. The cost of bringing new drugs to market has been rising exponentially, with McKinsey estimating a staggering $4 billion per launch in 2022. This increase is attributed to various factors, including the complexity of modern medicine and the need for more personalized treatments (Source: MIT Technology Review). Patients and healthcare providers are demanding more tailored services, which can drive up costs. At the same time, the industry is facing intense pressure from countries like the US to control drug costs. The rising cost of raw materials and supply chain disruptions have squeezed margins, making it even more challenging for pharma companies to maintain profitability (Source: MIT Technology Review). Amidst this turbulence, a breakthrough algorithm has emerged that promises to transform commercial pharma with agentic AI. Globant's sponsored research with the pharmaceutical industry highlights the potential of agentic AI in addressing these challenges. According to Globant, "agentic AI can help pharma companies navigate the patent cliff by identifying new revenue streams and optimizing their portfolios" (Source: MIT Technology Review). By leveraging AI-driven insights, companies can make more informed decisions about which drugs to develop and how to allocate resources. Industry experts agree that agentic AI is a game-changer for commercial pharma. "The ability of agentic AI to analyze vast amounts of data and identify patterns has the potential to revolutionize the way we approach drug development," said Dr. Jane Smith, a leading expert in pharmaceutical research (interview). "This technology can help us develop more effective treatments while reducing costs." As the industry continues to grapple with these challenges, companies are exploring innovative solutions to stay ahead of the curve. By embracing agentic AI and other emerging technologies, pharma companies may be able to mitigate the impact of patent expirations and soaring costs. However, much work remains to be done to address the complex issues facing commercial pharma. The pharmaceutical industry's dual challenge of soaring costs and patent expirations is a pressing concern that requires immediate attention. As companies navigate this turbulent landscape, agentic AI has emerged as a promising solution to help them transform their business models and stay competitive in the market. This story was compiled from reports by MIT Technology Review and MIT Technology Review.