Race for AI-developed drugs heats up: Wegovy-maker Novo Nordisk ties up with OpenAI after rival Eli Lilly seals deal
Danish drugmaker Novo Nordisk on Tuesday announced that it is collaborating with ChatGPT’s parent company, OpenAI, to bring “new and better treatment options to patients faster,” CNBC reported.
In a statement, Novo Nordisk said that its partnership with Sam Altman-led OpenAI will help the drugmaker to better use artificial intelligence (AI) to analyse complex datasets, help identify promising new drugs, and bring down the time it takes for a medicine to move from the research stage to patient use.
Pilot programmes will be launched across research and development, manufacturing and commercial operations, with full integration by the end of 2026, The Wall Street Journal reported.
Also Read | Will GLP-1 drugs transform the food business?
Novo CEO Mike Doustdar said, “There are millions of people living with obesity and diabetes who need treatment options, and we know there are therapies still waiting to be discovered that could change their lives,” and added, “Integrating AI in our everyday work gives us the ability to analyse datasets at a scale that was previously impossible, identify patterns we could not see, and test hypotheses faster than ever.”
Responding to the collaboration, OpenAI CEO Altman said, “AI is reshaping industries and in life sciences, it can help people live better, longer lives.”
Drugmakers eye AI to improve ops
According to the report, the development comes at a time when drugmakers are turning to AI to improve operations and lengthy processes. While artificial intelligence could discover new treatments, experts suggest that the industry is far from fully realising its capabilities. In the near term, more practical benefits could come from applying AI to other parts of drug development, for instance, streamlining the time-intensive process of finding suitable patients and sites for clinical trials.
Also Read | Why pharma is betting on obesity awareness in the GLP-1 race
According to an expert, clinical trials are still largely designed and conducted using conventional methods, with AI only being applied at certain stages. The expert added that the industry is yet to fully explore AI’s impact and is not yet integrated as an end-to-end solution.
According to a Reuters report, drug makers are increasingly turning to AI to enhance their research and development, and are relying on advanced modelling tools and automated labs to improve efficiency across their pipelines.
Novo Nordisk partners with Nvidia
The Danish drugmaker’s partnership with OpenAI is an extension of the company’s latest AI initiatives, which also include a collaboration with chipmaker Nvidia to use Gefion’s sovereign AI supercomputer to “accelerate drug discovery efforts through innovative AI use cases.” As per the report, the companies in 2025 noted that they plan to create customised AI models and agents that the drugmaker can use for early research and clinical development.
Novo Nordisk vs Eli Lilly
The Danish drugmaker is competing closely with its US rival Eli Lilly for leadership in the highly profitable weight-loss market, where it has already lost its early lead. The company is now working to regain market share with its Wegovy pill, launched in January, as well as by developing next-generation treatments.
Also Read | Eli Lilly, Insilico secure deal worth $2.75 bn to bring AI-developed drugs
Eli Lilly secures deal to bring AI-developed drugs to market
In March, US drugmaker and Nordisk’s rival, Eli Lilly, secured a $2.75 billion deal with Insilico Medicine to introduce AI-developed drugs in the global market. As per the agreement, Insilico Medicine will get $115 million up front, with additional payments tied to regulatory approvals and commercial milestones, as well as royalties on future sales.
