TD Cowen Survey Says AI Could Cut Drug Development Costs, Timelines By Up To 70%

According to Axios, a TD Cowen survey of 80 biopharma leaders and insiders found that artificial intelligence is compressing preclinical drug development costs and timelines by as much as 70%, helping drive demand for software, sequencing tools and computer models. The survey said new drug development programs could grow by more than 10% in three to five years, with the technology buying spree and additional lab spending potentially adding $1 billion in incremental spending. Axios also reported that demand for advanced software that can simulate biological processes, predict drug interactions and adjust dosages for newborns and pregnant women should see the strongest upside by 2028, while the Trump administration's push to reduce animal testing is likely to shift more work to computational tools, 3D human tissue models and other alternatives.