Fund Insight ODDO BHF Artificial Intelligence

Healthcare is one of the most data-intensive industries, yet also one of the most inefficient. Every year, 8 trillion dollars are spent in this sector, 40% of which is lost in inefficiency; the result of decades of analog (as opposed to digital) operations. In this Fund Insight, we want to show, through a few examples, how artificial intelligence, especially through its generative instance, opens the way to exponential progress for this sector that we all need so much.

DRUG DEVELOPMENT OR THE INDUSTRIALIZATION OF NON-LINEAR CORRELATION

Only 12% of drugs that enter clinical trials result in commercial launches. The average development time of a drug over all its cycles is 8 years. The pharmaceutical industry has therefore always been structured around long cycles and returns on capital employed limited by low success rates in the development phases.

We have been convinced since the launch of our fund in 2018 that artificial intelligence will modernize and revolutionize this approach, leading to shorter development times and discoveries that we are still struggling to envisage on the scourges of humanity. At stake is the passage into the "industrial" phase of nonlinear correlation (the very principle of AI); non-linear correlation has been the source of several discoveries in the history of medicine. Until now, it was the happy exception and will become a more widespread source of discovery tomorrow (due to the strong simulation capabilities offered by artificial intelligence).

THE SHARP REDUCTION IN THE COST OF GENOME SEQUENCING

Genome sequencing gives us all the information about our biology. It is thus the gateway to the most innovative drug development platforms: RNAMessenger, Cell Therapy (CAR-T), SiRNA, CRISPR/Cas 9 to name only the most promising ones on mass scourges like cancer, diabetes or Alzheimer's disease.

In its GTC 2023, the company NVDIA announced that it would, thanks to its technologies, reduce the cost of this sequencing from prohibitive costs until now to only 100 USD. It is releasing a GPU-accelerated computational genomics toolkit (a product called Parabricks) that will provide fast and accurate information to sequencing centers. At the same time, it will transform the business model of players in the sequencing sector (Oxford Nanopore Technologies, Pacific Biosciences and Illumina) as well as those in spatial genomics (NanoString and 10XGenomics).

LIFE SCIENCES AND DIAGNOSTICS WILL BECOME AI POWERED

If there is one sector that is crucial to the development of new therapies and the diagnosis of recent and evolving diseases, it is the life sciences and diagnostics sector. The best-known companies in the world are Thermofisher, Danaher, Avantor in the United States, Roche and Qiagen in Europe and Wuxi Biologics and Samsung Biologics in Asia. They are fully integrated into the research, development and manufacturing chains of all major pharmaceutical companies as well as hundreds of biotechnology companies worldwide.

We believe that this sector will gradually transform itself to become largely AI powered. Nvidia has perfectly understood this secular evolution and is orchestrating it by making its Holoscan computation platform and its associated software library available to the pharmaceutical industry to become the digital ecosystem of this sector. For actors of the health sector, Holoscan will enable digitalized development tools based on videos but also real time among many other applications.

The same will be true of the Medtech sector. One of the world leaders in the sector (Medtronic) has just announced the development of innovative products based onNvidia Holoscan.

Find the full Fund Insight in the document below :

Press contacts:

Gunther De Backer

Partner, Backstage Communication

• gunther@backstagecom.be
• +32477903909

• backstagecom.be
• BackstageCommunicationSPRL

Olivier Duquaine

Managing Director, Backstage Communication

• olivier@backstagecom.be
• +32477504784

• backstagecom.be
• BackstageCommunicationSPRL

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