AstraZeneca acquires Modella AI to accelerate oncology drug development with foundation models

AstraZeneca to acquire Modella AI to speed oncology drug research

SAN FRANCISCO, Jan 13 (Reuters) - AstraZeneca (AZN.L), opens new tab has agreed to buy Boston-based Modella AI, the companies said on Tuesday, as the drug industry increases its use of artificial intelligence to accelerate the discovery of new drugs. The companies did not disclose financial terms. In a press release, Modella AI said its "foundation models" and AI agents would be integrated into oncology research and development to support clinical development and biomarker discovery. "Oncology drug development is becoming more complex, more data-rich and more time-sensitive," said Gabi Raia, Modella AI's chief commercial officer, adding that joining AstraZeneca would allow it to deploy its tools in global trials and clinical settings. AstraZeneca said that this was the first acquisition of an AI firm by a big pharmaceutical company. In an interview at the JP Morgan Healthcare Conference, AstraZeneca Chief Financial Officer Aradhana Sarin said the acquisition would "supercharge" the company's quantitative pathology and biomarker discovery efforts by bringing more data and AI capabilities in-house. The deal was one of a number of pacts between major drug firms and AI companies that were unveiled at the healthcare conference, including a $1 billion collaboration between Nvidia (NVDA.O), opens new tab and Eli Lilly (LLY.N), opens new tab. They plan to build a new research lab using Nvidia's latest-generation AI chips. Modella will accelerate AstraZeneca's efforts to make pathology more quantitative - using computers to analyze biopsies for relevant proteins and correlate them with clinical data - so AstraZeneca can develop "highly targeted biomarkers and then highly targeted therapeutics," Sarin said. The deal is an expansion of a multi-year collaboration that the companies unveiled in July. Sarin said that partnership served as a "test drive," adding that AstraZeneca ultimately wanted Modella's data, foundation models and AI talent in-house. She said AI tools could be used to more rapidly select patients for drug trials, which could increase the odds of clinical success and cut related costs. Reporting by Maggie Fick; Editing by Thomas Derpinghaus Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Litigation * Intellectual Property * Health * Mergers & Acquisitions Maggie Fick Thomson Reuters Maggie is a Britain-based reporter covering the European pharmaceuticals industry with a global perspective. In 2023, Maggie's coverage of Danish drugmaker Novo Nordisk and its race to increase production of its new weight-loss drug helped the Health & Pharma team win a Reuters Journalists of the Year award in the Beat Coverage of the Year category. Since November 2023, she has also been participating in Reuters coverage related to the Israel-Hamas war. Previously based in Nairobi and Cairo for Reuters and in Lagos for the Financial Times, Maggie got her start in journalism in 2010 as a freelancer for The Associated Press in South Sudan.

AstraZeneca: acquires Modella AI to strengthen its oncology research

AstraZeneca has announced the acquisition of US start-up Modella AI, which specializes in artificial intelligence models for biomedical research. The financial terms of the deal were not disclosed. It aims to speed up the development of new oncology treatments by integrating Modella's advanced technologies into the drugmaker's global clinical trials. Modella AI, which is based in Boston, designs foundation models and AI agents capable of analysing complex clinical data and identifying relevant biomarkers. According to AstraZeneca, this is the first acquisition of an AI company by a major pharmaceutical laboratory. The move extends a collaboration launched last July and will enable AstraZeneca to bring the start-up's data, technological tools and talent in-house. AstraZeneca Chief Financial Officer Aradhana Sarin said that the acquisition will strengthen internal capabilities in quantitative pathology and in identifying therapeutic targets. Using AI, the company hopes to refine biopsy analysis, improve patient selection for clinical trials and reduce development costs. The announcement comes as a broader shift takes shape across the sector, highlighted by a $1bn partnership between Eli Lilly and Nvidia, unveiled at the same conference.