Wall Street's investments in AI - the future of Biotech and Medicine

With huge amounts of capital flowing into AI developments from Wall Street giants like Blackstone and JPMorgan Chase, AI systems and firms developing AI technologies are expected to continue their high rate of growth. While this may spark excitement, fear, or a mix of both, it is absolutely certain that both medicine and biotechnology will be impacted, directly and indirectly.

AI's direct impact already observed

AI developments and evolving technologies have already begun impacting medicine and biotechnology. DeepMind, a subsidiary of Alphabet Inc (Google's parent company), operates AlphaFold, a program that assists scientists and researchers in modeling 3D protein structures and understanding protein folding.

• Proteins are essential workers in the body, performing tasks like building tissues, speeding up chemical reactions, fighting infections, regulating genes, and providing energy when needed.

• Proteins are made up of long chains of amino acids. Although all amino acids share some similarities, their unique atomic structures cause them to attract or repel each other. Imagine playing with magnets: depending on how you orient the magnets, they either stick together or push apart. Similarly, if you have a string of magnets, certain arrangements are more stable and preferred. This concept is similar to how proteins fold, where specific amino acid interactions and external interactions, like with water, lead to stable structures.

AlphaFold 3, the newest model presented by DeepMind, is able to not only predict the structure of a protein, but also model mutated versions of the original protein which can lead to disease. The ability of scientists and researchers to understand the structure of a protein and the mutated versions allows for more efficient study of drug action and therapeutic developments.

Insilico Medicine, a biotechnology firm specializing in AI development of drugs and therapeutic compounds, has developed and launched Chemistry42. Chemistry42 integrates multiple AI models and deep learning algorithms to aid researchers in the design and discovery of new drug molecules. Researchers are also allowed the option of choosing between ligand based and structure based drug design.

• Structure based drug design utilizes a known or predicted 3D structure (like that generated by AlphaFold) of a target protein. Drug - Protein interactions are extremely specific and require both precise orientation and distance to occur effectively. When the structure of the target protein is known, structure based drug design is often preferred as a therapeutic molecule can be more easily designed to fit and bind properly. Think of it like a lock and key: if you have the exact shape of the lock, a key that fits perfectly can easily be crafted. When the key is inserted properly, therapeutics can be delivered to the target.

• Ligand based drug design relies upon molecules known to interact with a target protein. With the knowledge of one molecule, other molecules with similar chemical properties can be generated in order to screen for potential matches. Picture yourself as a chef. If you are a have a recipe that works well, you can create variations of that recipe by tweaking the ingredients slightly. By understanding what made the original recipe successful, you can develop new versions that are likely to turn out just as well or appeal to a different taste. The ligand based drug design method allows researchers to draw upon the successes of previously known interactions, even if the exact structure of the target is unknown.

Chemistry42 has already proven itself as a powerful tool for identifying and virtually screening drug candidates, and it continues to do so. On May 1, 2024, Insilico Medicine published in the Journal of Medicinal Chemistry a new drug developed using Chemistry42 that exhibits properties effective against both blood and solid tumor cancers. Low risk of drug-drug interactions were also observed which is promising as the Chemistry42 developed drug could be used in combination with other drugs, referred to as combination therapy.

• Combination therapy combines multiple methods of treatment, such as multiple medications, to more effectively treat a condition or disease.

Indirect positive effects still yet to be observed

As Wall Street invests heavily in AI systems, the biotechnology and medical fields are poised for substantial growth, both directly and indirectly. These large investments, intended for the creation of more advanced and powerful computing technologies, will significantly enhance research and development capabilities. Improved AI will streamline complex data analysis, accelerate the drug discovery process, and optimize clinical trials, making biotech and medical innovations more efficient and cost-effective. Instead of running thousands of trials to determine potential candidates, AI systems like that of Chemistry42 can be used to identify a smaller number of better candidates, saving both time, money, and researcher brainpower. The journey from discovery to market for a new drug involves a substantial investment, averaging $2.3 billion dollars in 2023. With advancements in AI and computing capabilities, companies can bring new treatments and therapies to market faster, increasing their competitive edge and profitability.

Moreover, the enhanced computational power will enable researchers to tackle previously insurmountable challenges, opening new avenues for scientific exploration and discovery. This will drive innovation in personalized medicine, where treatments can be tailored to individual genetic profiles, leading to better patient outcomes. AI's predictive modeling capabilities will also improve disease prevention and management, reducing healthcare costs and improving public health.

As AI technologies become more integrated into biotech and medical practices, collaboration between these fields will intensify, fostering a multidisciplinary approach to problem-solving. This synergy will result in more comprehensive and effective solutions to complex health issues. Ultimately, Wall Street's focus on AI will naturally propel significant advancements and sustained growth in biotechnology and medicine, transforming the landscape of healthcare and enhancing the quality of life for people worldwide. A win for biotech companies, the general public, and Wall Street.

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