MARKET SIZE
The AI drug discovery market reached $3B in 2024 and is projected to grow at 30% CAGR to $50B by 2035—the fastest-growing segment in pharmaceutical R&D. Growth is driven by clinical validation of AI-designed drugs, massive pharma partnerships, and transformer/foundation model advances enabling new approaches to target discovery and molecule design.
TECHNOLOGY SEGMENTS
- Target Discovery: 25% share—multi-omics analysis, knowledge graphs, PandaOmics
- Generative Chemistry: 30% share—de novo molecule design, Chemistry42, Valence
- Phenomics/Imaging: 20% share—high-content screening analysis, Recursion
- Clinical Prediction: 15% share—trial outcome prediction, patient stratification
- ADMET Prediction: 10% share—computational toxicity and metabolism
KEY PLAYERS & DEALS
- Recursion: $150M Roche/Genentech, $1B Bayer, Nvidia partnership
- Insilico Medicine: $2.6B cumulative partnerships, Phase II drugs
- Exscientia: Sanofi $100M, BMS deal, acquired by Recursion
- Isomorphic Labs: Eli Lilly/Novartis $3B combined deal
- Generate Biomedicines: $370M+ funding, protein design
CLINICAL VALIDATION
Insilico Medicine's INS018_055 (Phase II, idiopathic pulmonary fibrosis) represents the first fully AI-discovered and AI-designed drug in advanced clinical trials. Multiple AI-derived candidates from Recursion, Exscientia, and others are in Phase I/II, with the first approvals anticipated by 2027-2028.