• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Healthmedicine

How Big Pharma Is Using AI to Make Better Drugs

By
Sy Mukherjee
Sy Mukherjee
Down Arrow Button Icon
By
Sy Mukherjee
Sy Mukherjee
Down Arrow Button Icon
March 19, 2018, 6:30 AM ET

Creating innovative, lifesaving medicines, say pharmaceutical company bosses, requires a sufficient return on investment. But lately, that ROI stinks. In 2017, according to Deloitte, the 12 largest bio- pharma companies got a mere 3.2% return out of their drug-research arms. In 2010, that number was 10.1%.

How can pharma break out of this rut? One avenue might be the use of artificial intelligence to improve drug discovery at the earliest stages (when the risk of failure is also the highest). “[A.I.] can help analyze large data sets from sources such as clinical trials, health records, genetic profiles, and preclinical studies; within this data, it can recognize patterns and trends and develop hypotheses at a much faster rate than researchers alone,” says Deloitte.

Read more on this topic on our feature Tech’s Next Big Wave: Big Data Meets Biology.

And Big Pharma names like Merck, Sanofi, and Astra- Zeneca, are already taking it to the lab. In 2017, AstraZeneca struck a partnership with BERG, a Massachusetts startup, to use the latter’s A.I. platform to home in on promising biological targets and possible agents against neurological diseases such as Parkinson’s.

So how does it work? For starters, says BERG CEO Niven R. Narain, by going “back to biology.” Tissue samples are taken from both healthy and sick

patients, analyzed on multiple molecular levels, combined with clinical data, and then fed through BERG’s A.I. platform to suss out targets.

For analyzing that data, BERG eschews “the publicly available databases,” says Narain. “We use a Bayesian approach rather than a neural network,” he says. “It’s not just taking a bunch of data, putting it through a model, and coming up with some correlation. You don’t start out with a predetermined hypothesis—you feed the system all this data and allow the data to generate the hypotheses.”

So, in short, A.I. sounds like good old-fashioned science. Go figure.

About the Author
By Sy Mukherjee
See full bioRight Arrow Button Icon

Latest in Health

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Health

SuccessOlympics
U.S. Olympians earn just 5% of what Singapore pays—many are forced to juggle jobs as baristas, brokers, and dentists just to get by
By Sydney LakeFebruary 10, 2026
3 hours ago
oz
PoliticsVaccines
Dr. Oz pleads with America: ‘take the vaccine, please’ as measles soar on RFK-led revival
By Matt Brown and The Associated PressFebruary 10, 2026
3 hours ago
AIOpenAI
Panicked about losing GPT-4o, some ChatGPT users are building DIY versions. A psychologist explains why ‘feel-good hormones’ make it hard to let go
By Marco Quiroz-GutierrezFebruary 10, 2026
8 hours ago
tara comonte
CommentaryAdvertising
Weight Watchers CEO: what the GLP-1 Super Bowl ads are missing
By Tara ComonteFebruary 9, 2026
1 day ago
CommentaryHealth
Patient private capital is needed to help Asia plug its healthcare gaps
By Abrar MirFebruary 8, 2026
2 days ago
Arts & EntertainmentAdvertising
Super Bowl ads go for silliness, tears and nostalgia as Americans reel from ‘collective trauma’ of recent upheaval — ‘Everybody is stressed out’
By Dee-Ann Durbin, Mae Anderson, Wyatte Grantham-Philips and The Associated PressFebruary 8, 2026
2 days ago

Most Popular

placeholder alt text
C-Suite
Meet Jody Allen, the billionaire owner of the Seattle Seahawks, who plans to sell the team and donate the proceeds to charity
By Jake AngeloFebruary 9, 2026
22 hours ago
placeholder alt text
AI
As billionaires bail, Mark Zuckerberg doubles down on California with $50 million donation
By Sydney LakeFebruary 9, 2026
1 day ago
placeholder alt text
Economy
China might be beginning to back away from U.S. debt as investors get nervous about overexposure to American assets
By Eleanor PringleFebruary 9, 2026
1 day ago
placeholder alt text
Economy
Elon Musk warns the U.S. is '1,000% going to go bankrupt' unless AI and robotics save the economy from crushing debt
By Jason MaFebruary 7, 2026
3 days ago
placeholder alt text
Personal Finance
Current price of silver as of Monday, February 9, 2026
By Joseph HostetlerFebruary 9, 2026
1 day ago
placeholder alt text
Personal Finance
Current price of gold as of February 9, 2026
By Danny BakstFebruary 9, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.