DECEMBER 20239TECH OUTLOOKOrdaos is one such company that is leveraging this continual learning process to de-novo design and validate a new class of mini-proteins, which they call "miniPRO", that are more configurable and can fit a wider range of targets than traditional antibodies. Another startup, Deepcure, combines cutting-edge AI with an in-house automated chemistry platform that can perform complex, multi-step synthesis. This capability allows Deepcure to analyze a much broader range of candidates than traditional companies would have access to. By unifying these capabilities, these startups exemplify how AI can generate more data about a candidate and analyze it at a faster pace than traditional drug discovery companies. In turn, this should lead to a higher rate of success in the clinic and a faster time to market. Market Environment for AI Drug Discovery Startups According to a Pitchbook analysis covering 190 companies, over $17.6 billion of capital has been invested in AI drug discovery startups over the last ten years. Much like the trend in the broader biotech industry, the annual amount of capital invested into AI Drug Discovery startups peaked in 2021 at approximately $4.3bn but has since dropped to ~$1bn so far in 2023. There has also been a slowdown in collaboration agreements between Big Pharma and AI companies, with only 17 through Q3 2023 after seeing 66 agreements in 2022 and 53 agreements in 2021. Despite the worsening fundraising environment, the R&D structure of the pharmaceutical industry remains broken. Thus, there continues to be an opportunity for startups to build fundamental technologies that make it faster and cheaper to bring drugs to the market. Moreover, we've seen early indications of the value that AI can get to the drug discovery process, with Nimbus Therapeutics signing a $4bn upfront agreement with Takeda on a Tyk-2 inhibitor. It's an exciting time to be a part of the innovations that will ultimately improve the lives of patients. According to a Pitchbook analysis covering 190 companies, over $17.6bn of capital has been invested into AI Drug Discovery startups over the last 10 years
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