FROST RADAR™: Artificial Intelligence for Drug Discovery in the Pharmaceutical Industry, 2020

Healthcare FROST RADAR™: Artificial Intelligence for Drug Discovery in the Pharmaceutical Industry, 2020

Benchmarking Future Growth Potential

INDUSTRY
Healthcare
SECTOR
Life Sciences

RELEASE DATE
05-May-2020
REGION
North America
DELIVERABLE TYPE
Frost Radar

RESEARCH CODE
K409-01-00-00-00
SKU
HC03288-GL-MR_24354
Yes
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FROST RADAR™: Artificial Intelligence for Drug Discovery in the Pharmaceutical Industry, 2020
Published on: 05-May-2020 | SKU: HC03288-GL-MR_24354

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Pharmaceutical drug discovery and development suffers from declining success rates with new molecules and the rate of return shrinking from 16% in 2011 to almost 11% in 2018. Frost & Sullivan research indicates that traditional solutions that have focused primarily on data from limited sources and rule-based computational techniques to address the understanding around targets and leads are inefficient. The increasing volume and veracity of clinical and research data compels traditional providers to leverage converging technologies such as artificial intelligence (AI), machine learning, natural language processing, and advanced analytics to shift from static to dynamic and adaptive data management practices. The ecosystem for supporting this growth has matured: several technology start-ups and large commercial vendors have already started delivering the impact through their products and solutions catering to drug discovery. While the benefits over the next 2 to 3 years are expected to be achieved through improved drug pipelines and faster clinical approval of new molecules, beyond that companies that integrate AI solutions will see significant impact on efficiency, cost savings and commercial success depending on their business goals.

Frost & Sullivan analysis shows that the AI impact over the pharma value chain can more than double what is achievable using traditional analytics and capture between 2% and 3% of the industry revenue, amounting to more than $50 billion in potential annual impact. This Frost Radar™ recognizes the participants that are at the forefront of developing and employing the tools. This is an industry-first benchmarking study that provides an introduction to the ecosystem and recognizes the pioneering companies.

The Frost Radar reveals the market positioning of companies in an industry using their Growth and Innovation scores as highlighted in the Frost Radar methodology. The document presents competitive profiles on each of the companies in the Frost Radar based on their strengths, opportunities, and a small discussion on their positioning. Frost & Sullivan analyzes hundreds of companies in the industry and benchmarks them across 10 criteria on the Frost Radar, where the leading companies in the industry are then positioned. Industry leaders on both the Growth and Innovation indices are recognized as best practice recipients.

Author: Amol Dilip Jadhav

Strategic Imperative

Strategic Imperative (continued)

AI for Drug Discovery Market Segmentation

Growth Environment

Growth Environment (continued)

Frost Radar™

Frost Radar™

Frost Radar™

Frost Radar™

ACURASTEM, INC.

ACURASTEM, INC. (continued)

AI THERAPEUTICS

AI THERAPEUTICS (continued)

ATOMWISE

ATOMWISE (continued)

BenevolentAI

BenevolentAI (continued)

BERG

BERG (continued)

BIOVISTA INC.

BIOVISTA INC. (continued)

COTINGA PHARMACEUTICALS INC.

COTINGA PHARMACEUTICALS INC. (continued)

EVAXION BIOTECH

EVAXION BIOTECH (continued)

EXSCIENTIA LTD.

EXSCIENTIA LTD. (continued)

GRITSTONE ONCOLOGY, INC.

GRITSTONE ONCOLOGY, INC. (continued)

HEALX

HEALX (continued)

INSILICO MEDICINE

INSILICO MEDICINE (continued)

LANTERN PHARMA, INC.

LANTERN PHARMA, INC. (continued)

PHARNEXT

PHARNEXT (continued)

RECURSION PHARMACEUTICALS

RECURSION PHARMACEUTICALS (continued)

twoXAR

twoXAR (continued)

Strategic Insights

SIGNIFICANCE OF BEING ON THE FROST Radar™

FROST Radar™ EMPOWERS THE CEO’S GROWTH TEAM

FROST Radar™ EMPOWERS INVESTORS

FROST Radar™ EMPOWERS CUSTOMERS

FROST Radar™ EMPOWERS THE BOARD OF DIRECTORS

FROST Radar™: BENCHMARKING FUTURE GROWTH POTENTIAL

FROST Radar™: BENCHMARKING FUTURE GROWTH POTENTIAL

FROST Radar™: BENCHMARKING FUTURE GROWTH POTENTIAL

Legal Disclaimer

Frost Radar™: Benchmarking Future Growth Potential 2 Major Indices, 10 Analytical Ingredients, 1 Platform

Growth Index

Growth Index (GI) is a measure of a company’s growth performance and track record, along with its ability to develop and execute a fully aligned growth strategy and vision; a robust growth pipeline system; and effective market, competitor, and end-user focused sales and marketing strategies.

  • Market Share (previous 3 years)
    This is a comparison of a company’s market share relative to its competitors in a given market space for the previous 3 years.
  • Revenue Growth (previous 3 years)
    This is a look at a company’s revenue growth rate for the previous 3 years in the market/industry/category that forms the context for the given Frost Radar™.
  • Growth Pipeline
    This is an evaluation of the strength and leverage of a company’s growth pipeline system to continuously capture, analyze, and prioritize its universe of growth opportunities.
  • Vision and Strategy
    This is an assessment of how well a company’s growth strategy is aligned with its vision. Are the investments that a company is making in new products and markets consistent with the stated vision?
  • Sales and Marketing
    This is a measure of the effectiveness of a company’s sales and marketing efforts in helping it drive demand and achieve its growth objectives.

Innovation Index

Innovation Index (II) is a measure of a company’s ability to develop products/ services/ solutions (with a clear understanding of disruptive Mega Trends) that are globally applicable, are able to evolve and expand to serve multiple markets and are aligned to customers’ changing needs.

  • INNOVATION SCALABILITY
    This determines whether an organization’s innovations are globally scalable and applicable in both developing and mature markets, and also in adjacent and non-adjacent industry verticals.
  • RESEARCH AND DEVELOPMENT
    This is a measure of the efficacy of a company’s R&D strategy, as determined by the size of its R&D investment and how it feeds the innovation pipeline.
  • PRODUCT PORTFOLIO
    This is a measure of a company’s product portfolio, focusing on the relative contribution of new products to its annual revenue.
  • MEGATRENDS LEVERAGE
    This is an assessment of a company’s proactive leverage of evolving, long-term opportunities and new business models, as the foundation of its innovation pipeline.
  • CUSTOMER ALIGNMENT
    This evaluates the applicability of a company’s products/services/solutions to current and potential customers, as well as how its innovation strategy is influenced by evolving customer needs.

Significance of Being on the Frost Radar™

Companies plotted on the Frost RadarTM are the leaders in the industry for growth, innovation, or both. They are instrumental in advancing the industry into the future.

  • GROWTH POTENTIAL
    Your organization has significant future growth potential, which makes it a Company to Action.
  • BEST PRACTICES
    Your organization is well positioned to shape Growth Pipeline™ best practices in your industry.
  • COMPETITIVE INTENSITY
    Your organization is one of the key drivers of competitive intensity in the growth environment.
  • CUSTOMER VALUE
    Your organization has demonstrated the ability to significantly enhance its customer value proposition.
  • PARTNER POTENTIAL
    Your organization is top of mind for customers, investors, value chain partners, and future talent as a significant value provider.

Have questions about this research or need deeper insights?
Speak directly with our analytics experts for tailored recommendations.

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Impacting your company's future growth potential.

Pharmaceutical drug discovery and development suffers from declining success rates with new molecules and the rate of return shrinking from 16Percentage in 2011 to almost 11Percentage in 2018. Frost & Sullivan research indicates that traditional solutions that have focused primarily on data from limited sources and rule-based computational techniques to address the understanding around targets and leads are inefficient. The increasing volume and veracity of clinical and research data compels traditional providers to leverage converging technologies such as artificial intelligence (AI), machine learning, natural language processing, and advanced analytics to shift from static to dynamic and adaptive data management practices. The ecosystem for supporting this growth has matured: several technology start-ups and large commercial vendors have already started delivering the impact through their products and solutions catering to drug discovery. While the benefits over the next 2 to 3 years are expected to be achieved through improved drug pipelines and faster clinical approval of new molecules, beyond that companies that integrate AI solutions will see significant impact on efficiency, cost savings and commercial success depending on their business goals. Frost & Sullivan analysis shows that the AI impact over the pharma value chain can more than double what is achievable using traditional analytics and capture between 2Percentage and 3Percentage of the industry revenue, amounting to more than $50 billion in potential annual impact. This Frost Radar™ recognizes the participants that are at the forefront of developing and employing the tools. This is an industry-first benchmarking study that provides an introduction to the ecosystem and recognizes the pioneering companies. The Frost Radar reveals the market positioning of companies in an industry using their Growth and Innovation scores as highlighted in the Frost Radar methodology. The document presents competitive profiles on each of the companies in the Frost Radar based on their strengths, opportunities, and a small discussion on their positioning. Frost & Sullivan analyzes hundreds of companies in the industry and benchmarks them across 10 criteria on the Frost Radar, where the leading companies in the industry are then positioned. Industry leaders on both the Growth and Innovation indices are recognized as best practice recipients. Author: Amol Dilip Jadhav
More Information
Deliverable Type Frost Radar
No Index No
Podcast No
Author Amol Dilip Jadhav
Industries Healthcare
WIP Number K409-01-00-00-00
Is Prebook No
GPS Codes 9564-B1,9575-B1,9600-B1,9612-B1,9562-B1,9571-B1,9573-B1,99BC-B1,99C1-B1,99C6-B1,9568-B1,9611-B1,9627-B1