As artificial intelligence (AI) becomes increasingly important for drug development, how should AI firms — many of which are small startups — structure their business relationships with pharmaceutical companies?
Many AI firms are turning to royalties on future drug sales as an alternative to licensing or consulting fees, which are widely seen as favoring drug developers. While no means a new phenomenon in drug development, royalties on sales will play a bigger role and drive new market dynamics throughout the pharmaceutical industry.
In the following article, I will discuss the diversification of revenue streams in the context of the wider pharmaceutical industry and relate this to the development stage of individual AI startups. Read the full article at The Science Advisory Board. Or find the original article from Emersion Insights here.