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Sanofi (SNY) Signs Deal for AI-Powered Drug Development

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Sanofi (SNY - Free Report) announced that it has entered into a first-in-class artificial intelligence (AI) collaboration with Formation Bio and OpenAI to build AI-powered software to expedite the development of drugs.

Formation Bio is a tech-driven, AI-native pharma company focused on bringing new treatments to patients with more efficient drug development, while OpenAI is an AI research and deployment company.

Per the press release, the companies are collaborating to bring together data, software and tuned models aimed at developing custom, purpose-built solutions in the drug development lifecycle.

Sanofi’s collaboration with Formation Bio and OpenAI for AI-driven drug development is the first of its kind within the pharma and life sciences industries.

Shares of Sanofi have decreased 2.6% year to date against the industry’s rise of 15.3%.

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With the help of this partnership with Formation Bio and OpenAI, Sanofi is looking to become the first pharmaceutical company substantially powered by AI.

Sanofi is strongly deploying AI, data science and computational expertise to develop first and best-in-class medicines for patients who are looking for innovative treatments.

We note that there is a huge potential for AI to accelerate and shape the future of drug development.

Last month, Moderna (MRNA - Free Report) entered into a collaboration with OpenAI to co-develop and advance mRNA medicines.

With this deal, MRNA is looking to bring a new generation of medicines to patients in need.

Moderna is looking to integrate generative AI to advance its broad and diverse portfolio of mRNA medicines and vaccines.

Zacks Rank & Stocks to Consider

Sanofi currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the healthcare sector are Entera Bio Ltd. (ENTX - Free Report) and ANI Pharmaceuticals, Inc. (ANIP - Free Report) , both carrying a Zacks Rank #2 (Buy) at present.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, estimates for Entera Bio’s 2024 loss per share have narrowed from 75 cents to 25 cents. Year to date, shares of ENTX have surged 283.4%.

ENTX’s earnings beat estimates in three of the trailing four quarters and missed the same once, the average surprise being 6.50%.

In the past 60 days, estimates for ANI Pharmaceuticals’ 2024 earnings per share have improved from $4.43 to $4.44. Year to date, shares of ANIP have jumped 12%.

Earnings of ANIP beat estimates in each of the trailing four quarters, the average surprise being 53.90%.

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