Wegovy maker partners with OpenAI to speed drug development

Danish drugmaker Novo Nordisk, which has fallen behind Eli Lilly in the immensely lucrative weight-loss drug market, said on Tuesday it is partnering with OpenAI to deploy artificial intelligence across its business, from drug discovery to manufacturing and commercial operations.

The maker of Wegovy and Ozempic said the partnership would use OpenAI’s technology to analyse complex datasets, identify promising drug candidates and improve efficiency in ⁠manufacturing, supply chains, distribution and corporate operations.

Drugmakers are increasingly using AI to streamline the more tedious parts of drug development, from finding clinical trial participants and selecting sites to preparing regulatory filings, though industry executives say the technology has not yet fully delivered on the harder task of discovering major new molecules.

Novo is seeking new ways to regain ground in an intensifying obesity-drug battle with Indianapolis-based Lilly, which this month won US approval for its weight-loss pill Foundayo after Novo launched oral Wegovy in January. Analysts expect annual revenue from weight-loss drugs to exceed $100 billion in the next decade.

Novo did not disclose financial terms of the agreement. It said pilot programmes would begin across ‌research ⁠and development, manufacturing and commercial operations, with full integration planned by the end of 2026.

Novo said OpenAI will also help train its global workforce, increasing AI literacy and boosting productivity across departments.

TRAINING, NOT REPLACING

“The aim here is not replacing our scientists. It’s about supercharging them,” CEO Mike Doustdar said in an interview.

Doustdar said the partnership was not intended to ⁠cut Novo’s current workforce, but to lift productivity and curb the pace of future hiring.

He said AI would help employees work faster and more effectively, reducing the need to grow headcount as much as in the past. Shortly after taking over ⁠as CEO last year, Doustdar announced a restructuring that cut 9,000 jobs.

“AI is reshaping industries and in life sciences, it can help people live better, longer lives,” OpenAI CEO Sam Altman said in a statement. “This collaboration ⁠with Novo Nordisk will help them accelerate scientific discovery, run smarter global operations, and redefine the future of patient care.”

Novo said the partnership included strict data protection, governance and human oversight, and built on its existing AI initiatives with other technology partners and research organisations.