Novo Nordisk partners with OpenAI to speed up drug discovery

Novo Nordisk is teaming up with OpenAI to bring new treatments to patients faster. The Danish drugmaker announced the partnership Tuesday, saying it will help the company better use AI to analyze complex datasets and identify promising new drugs.

The collaboration aims to cut the time it takes for a medicine to move from research to patient use. Novo's stock jumped 2.8% shortly after the opening bell following the announcement.

How does it work?

The partnership will allow Novo to process datasets at a scale that was previously impossible. The company says AI will help it:

• Identify patterns in data that humans might miss
• Test hypotheses faster than traditional methods
• Speed up the overall drug discovery process

"There are millions of people living with obesity and diabetes who need treatment options, and we know there are therapies still waiting to be discovered that could change their lives," said Novo CEO Mike Doustdar.

Why does it matter?

Drug development is notoriously slow and expensive. Traditional methods can take years or even decades to bring a single treatment from lab to market. AI could change this by processing vast amounts of data quickly and spotting connections that human researchers might overlook.

"AI is reshaping industries and in life sciences, it can help people live better, longer lives," said OpenAI CEO Sam Altman.

For patients with diabetes and obesity, faster drug discovery could mean access to new treatment options sooner. This is particularly important given the growing global health burden of these conditions.

The context

Drugmakers are increasingly turning to AI to improve their operations. While the technology shows promise for discovering new treatments, experts say the industry is still far from using AI's full potential.

More immediate benefits may come from using AI in other areas of drug development, such as identifying patients and sites for clinical trials. This process is typically time-consuming and could benefit significantly from automation.

"We haven't heard the last of it yet... in terms of how clinical trials get designed and run, a lot of it is still very traditional, with certain points where AI is being used," Arthur D. Little partner Ben van der Schaaf told CNBC last month. "AI is not an end-to-end component yet."

This OpenAI partnership builds on Novo's existing AI initiatives. The company already works with Nvidia to use the Gefion sovereign AI supercomputer for drug discovery. That collaboration aims to create customized AI models that Novo can use for early research and clinical development.

The move comes as Novo faces intense competition from U.S. rival Eli Lilly in the lucrative weight loss market. Novo has lost its first-mover advantage and is now trying to regain market share through its Wegovy pill, launched in January, and next-generation drugs in development.