The news: Novo Nordisk will integrate OpenAI for a range of functions, including drug R&D, manufacturing, and commercial operations.

• Novo said it will use advanced AI to analyze complex datasets, find potential new drugs, and speed up the process of getting treatments from research to patients.
• OpenAI will help Novo upskill its workforce in AI while applying its capabilities to improve efficiency across drug manufacturing and the supply chain.

Why it matters: More Big Pharma companies are tapping AI giants for their tech expertise and advanced AI models to speed up drug discovery and development and boost internal productivity.

• Moderna has been partnering with OpenAI for a few years to deploy ChatGPT Enterprise across its business, fast-tracking development of mRNA medicines, including cancer vaccines.
• Sanofi has a tie-up with OpenAI and Formation Bio to develop an AI-powered software platform to accelerate drug development.
• Eli Lilly and Roche have partnered with Nvidia to build “AI factories” and supercomputers.
• Last month, Lilly also inked a multi-billion-dollar deal with AI drug developer Insilico.

Some estimates suggest AI tools can cut drug discovery and development timelines—typically 10 to 15 years—by up to half, while shortening the process of finding a candidate molecule from years to months. However, most drugmakers have yet to see AI meaningfully shorten R&D timelines or bring products to market much faster.

Implications for pharma companies: As AI models become more powerful, pharma companies won’t be slowed by earlier stalled projects—they’ll ramp up investment, driving a surge in partnerships and licensing deals.

While large drugmakers are central to many of these early tie-ups, smaller players may also gain access to AI giants’ capabilities—potentially through strategic arrangements where the AI firm earns royalties or shares in revenues from tech-enabled drug discoveries, as recently suggested by OpenAI CEO Sam Altman.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Not a subscriber? Click here to get a demo of our full platform and coverage.