Artificial intelligence (AI) and innovative pharmaceutical treatments in the weight-loss market have brought newfound interest to the technology and healthcare sectors.
One company operating across both AI and weight loss is Novo Nordisk (NVO +1.23%). The Danish pharmaceutical giant is the brains behind popular diabetes and obesity care medications Ozempic, Rybelsus, and Wegovy.
Let's dig into how the company is making waves in both AI technology and drug development.
NYSE: NVO
Key Data Points
The intersection of healthcare and technology
From statistical analysis of data in clinical trials to machines changing and honing the molecular buildup of potential breakthrough medications, technology and healthcare are close allies.
Novo Nordisk was long known for its insulin treatments. But a commitment to patient care and product innovation helped the company develop new medications and broaden its horizons, namely in the weight-loss space.
The company's development of a compound called semaglutide gave rise to Ozempic, Rybelsus, and Wegovy. Ozempic and Rybelsus are used to treat patients with diabetes. By contrast, Wegovy is approved by the Food and Drug Administration (FDA) for chronic weight management. All three of these blockbuster drugs belong to a class of treatments called glucagon-like peptide-1 (GLP-1) agonists.
While these medical discoveries have been met with praise, Novo Nordisk isn't resting on its laurels. The company remains committed to innovation, and management is dropping breadcrumbs on how artificial intelligence (AI) will play a role.
Image source: Getty Images.
Investing for the future
On the surface, use cases surrounding AI in the pharmaceutical industry may seem obvious. Novo Nordisk has outlined that artificial intelligence (AI) is helping the company process larger volumes of data from broader cohorts of patients.
In essence, this can theoretically increase the number of drug candidates brought to clinical trials. But more importantly, AI can play a role in identifying when these target medications are ready to be tested, thereby mitigating the risk of rushing into a new product trial before it's ready.
A few days ago, news broke that the Novo Nordisk Foundation awarded a contract to France-based data company Eviden to help develop AI in Denmark. Per the deal, Eviden will configure and install a supercomputer built on Nvidia's hardware and software system. The supercomputer, called Gefion, will boast over 1,500 Nvidia graphics processing units (GPUs) and leverage the chipmaker's CUDA software service.
The genesis of building the supercomputer is to help spearhead advancements in research and innovation across healthcare, life sciences, and sustainable energy.
While a project like this may seem more aspirational than anything, Novo Nordisk isn't the first healthcare company to get involved with quantum computing. IBM installed its own quantum computer, Quantum System One, at the Cleveland Clinic to bolster research and development.
What could this mean for Novo Nordisk?
Accelerated computing can help process clinical data faster and possibly more accurately. As a result, drug companies may be able to identify expanded indications or move through their pipeline of new candidates more quickly.
Diabetes and obesity care are already massive markets that are expected to grow for years. Research suggests that by 2050, there could be 1 billion diabetics worldwide. Moreover, Novo Nordisk's already-strong pipeline has me optimistic about the company's potential for the next several years.
I am encouraged by Novo Nordisk's foray in AI and optimistic that the technology will help strengthen the company's long-term potential. Plus, Novo Nordisk's involvement with the supercomputer shines a light on something deeper. The company is ultimately helping fund clinical research on a broader level, and this could lead to medical breakthroughs in many different areas.
To me, this showcases that Novo Nordisk places a premium on patient care -- regardless of if future breakthroughs impact the company's core markets. I think Novo Nordisk should be seen as a leader in the healthcare space, and its focus on AI-powered innovation should not go overlooked.
