Danish drugmaker Novo Nordisk said on Tuesday it would partner with U.S. artificial intelligence company OpenAI to deploy artificial intelligence in every aspect of its business, from drug discovery to manufacturing and commercial operations.
The maker of weight-loss drugs Wegovy and Ozempic said the collaboration will use OpenAI's technology to analyze complex data sets, identify promising drug candidates and improve the efficiency of manufacturing, supply chain, distribution and company operations.
Drugmakers are increasingly using artificial intelligence to streamline more tedious aspects of drug development, such as finding clinical trial participants, choosing trial sites and preparing regulatory documents. However, industry executives say the technology has not yet fully solved the more challenging task of discovering significant new molecules.
Novo did not disclose the financial terms of the agreement. The company said pilot projects will be launched in departments such as research and development, manufacturing and commercial operations, and it plans to complete full integration by the end of 2026.
Novo also said that OpenAI will also help train its global employees, improve artificial intelligence literacy, and improve the productivity of various departments.
Novo Nordisk is seeking new avenues to regain market share in growing competition with Indianapolis-based Eli Lilly and Company for weight-loss drugs. Eli Lilly and Co.'s weight-loss drug Foundayo won U.S. approval this month, while Novo Nordisk launched its oral weight-loss drug Wegovy in January. Analysts expect annual revenue from weight-loss drugs to exceed $100 billion over the next decade.
"Our goal is not to replace our scientists, but to enhance their capabilities," Novo Nordisk CEO Mike Dostal said in an interview.
Doustal said the partnership was not intended to cut Novo Nordisk's current workforce but to increase productivity and slow future hiring.
He said artificial intelligence will help employees work faster and more efficiently, reducing the need to increase headcount as much as in the past. Shortly after becoming CEO last year, Dostal announced a restructuring plan that would eliminate 9,000 jobs.
OpenAI CEO Sam Altman said in a statement: "Artificial intelligence is reshaping every industry, and in life sciences, it can help people live longer and healthier lives. This partnership with Novo Nordisk will help them accelerate scientific discovery, conduct smarter global operations, and redefine the future of patient care."
Novo Nordisk said the collaboration includes strict data protection, governance and human oversight and builds on its existing AI projects with other technology partners and research institutions.