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From biology-first AI to structured digital twin adoption, 4 shifts coming to biopharma R&D in 2025

By Brian Buntz | December 3, 2024

Digital data background. Luminous dots connected by glowing network. Based on Generative AI

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In 2023, the composite success rate for clinical development in biopharma hit its highest level since 2018 thanks to the adoption of novel trial designs, predictive biomarkers, and digital methodologies, according to IQVIA. But waning R&D productivity is a significant industry concern. A substantial number of life science executives believe their organizations need to rethink their R&D and product-development strategies in the near future. From 2012 to 2022, inflation-adjusted R&D spending increased by 44%, from approximately $170 billion to $247 billion, according to McKinsey. The challenge is especially acute for firms that had sizable pandemic-era revenues. In September 2024, Moderna revealed plans to cut its R&D expenses by $1.1 billion, aiming to reduce annual R&D spending from $4.8 billion in 2024 to under $4 billion by 2027.

Looking ahead to 2025, two execs predict more of an evolutionary advance of digital initiatives in drug development than a revolutionary one.

1. AI pivots to biology-first approaches

Niven Narain

Niven Narain
CEO
BPGbio
“The biopharmaceutical industry will pivot from hype-driven investments in AI to a focus on biology-first AI approaches that prioritize real longitudinal biological data.”

BPGbio CEO Niven Narain predicts a pronounced shift in how the industry applies AI: “The biopharmaceutical industry will pivot from hype-driven investments in AI to a focus on biology-first AI approaches that prioritize real longitudinal biological data.” This transformation will emphasize integrating AI with patient-derived multi-omics datasets, enabling deeper understanding of disease mechanisms and therapeutic responses. The goal? Moving beyond correlation to uncover causation in drug discovery, particularly for complex diseases like glioblastoma and pancreatic cancer. Narain points to the promise of marrying AI with rigorous biological inputs and translational models, which will help the sector address unmet medical needs.

2. Steady growth in digital twin adoption

Gen Li, Ph.D., CEO of Phesi, sees a gradual but transformative adoption curve ahead: “People are going to become more interested in digital twin adoption as education and training efforts continue and as understanding and awareness of the area improves. It will initially be a gradual process, but at some point it’s going to explode as people become fully familiar with the benefits. The industry needs to be ready to embrace that.”

3. A structured digital twin adoption pathway emerges

Phesi’s Li foresees a structured adoption pathway starting with Digital Patient Profiles (DPPs). “DPPs support key decision-making processes, allowing medical teams to assess whether there’s enough data for a digital twin to be part of their core strategy,” Li explained. These profiles enable early FDA engagement and improve trial design even when full digital twin implementation isn’t feasible.

Gen Li

Gen Li, Ph.D.
CEO and Founder
Phesi
“Building digital twins for rare diseases can be challenging due to data volume requirements. However, in areas where placebo groups are ethically challenging—particularly in cancer, hematology, and neurodegenerative conditions—digital twins can be very effective, leveraging rich biomarker databases to replace traditional control groups.”

Digital twins are virtual representations of patients, constructed using significant amounts of historical and current clinical data. They simulate patient responses to treatments, potentially replacing or augmenting control arms in clinical trials. Yet building meaningful digital twins requires substantial volumes of high-quality data.

“Building digital twins for rare diseases can actually be challenging, since with many such indications, there is a lack of data in required volumes to make a digital twin meaningful,” Li noted. “However, in other areas where placebo groups can be ethically challenging, digital twins can be very effective—particularly in cancer, hematology, and neurodegenerative conditions.”

Li cites specific examples where digital twins have already shown promise:

  • G12C KRAS Mutation Case Study: Despite no prior clinical trials investigating the G12C KRAS mutation, Phesi created a digital twin through the use of datasets from biomarker analyses. This approach allowed researchers to simulate patient responses and design more effective trials without starting from scratch.
  • cGvHD Digital Twin for Prednisone Control Arms: In chronic graft versus host disease (cGvHD), Phesi developed a digital twin to replicate patients receiving prednisone, the standard-of-care treatment used in control arms. “This allows researchers to accelerate trials into this challenging condition by automating an external control arm and enabling sponsors to test new therapies faster,” Li explained.
  • Alzheimer’s Trial Duration Reduction: In neurodegenerative diseases like Alzheimer’s, digital twins have demonstrated the potential to significantly reduce trial durations. “The standard duration for Alzheimer’s clinical trials is 18-24 months,” Li said. “By using digital twins, we’ve been able to model a shorter, 12-month observation period, during which we could observe a 20-30% rate of cognitive decline. This approach could lead to much shorter clinical trials with improved outcomes.”

4. Expect more AI partnerships and regulatory wins for biopharma in 2025

While there are yet to be any FDA approved drugs discovered solely with AI approaches, it’s only a matter of time before that milestone becomes a reality. In February 2023, Insilico Medicine’s lead candidate, INS018_055, a small molecule inhibitor for idiopathic pulmonary fibrosis, won the FDA’s first Orphan Drug Designation for an AI-discovered and designed drug. The number of partnerships between pharma heavyweights and AI focused drug discovery and development firms is also increasing. For instance, Schrödinger, known for its physics-based computational platform, entered a multi-year collaboration with Novartis in November 2024. A number of company are already announcing wins. For instance, GSK accelerated its respiratory syncytial virus (RSV) drug trials by two years through real-time tracking of infectious diseases using predictive data modeling, according to its CEO Emma Walmsley, who was quoted in Barron’s. Expect more of this in 2025.


Filed Under: machine learning and AI
Tagged With: biology-first AI, biomarker analysis, clinical trial optimization, digital twin technology, drug discovery automation, multi-omics data, R&D productivity
 

About The Author

Brian Buntz

As the pharma and biotech editor at WTWH Media, Brian has almost two decades of experience in B2B media, with a focus on healthcare and technology. While he has long maintained a keen interest in AI, more recently Brian has made making data analysis a central focus, and is exploring tools ranging from NLP and clustering to predictive analytics.

Throughout his 18-year tenure, Brian has covered an array of life science topics, including clinical trials, medical devices, and drug discovery and development. Prior to WTWH, he held the title of content director at Informa, where he focused on topics such as connected devices, cybersecurity, AI and Industry 4.0. A dedicated decade at UBM saw Brian providing in-depth coverage of the medical device sector. Engage with Brian on LinkedIn or drop him an email at bbuntz@wtwhmedia.com.

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