The company’s planned AI scale-up in procurement and R&D will lead to significant cost saving as well as improve drug development timeline and also improve topline in the next 3-4 years, chief technology officer Mandar Ghatnekar told ET.
However, Ghatnekar did not specify the amount of investments planned in the AI deployment and scale up or the exact quantum of top-line as a projected improvement.
Kiran Mazumdar-Shaw, chairperson, Biocon, added the company sees significant gains from AI and over the decades, it has pioneered using advanced technologies. Shaw emphasised that the merger between the two entities-Biocon and Biocon Biologics-opens a plethora of opportunities for the company, counting Biocon among the top five players in the world. While large multinational companies are making big moves in weight-loss drugs, she noted, Biocon has the potential to be a leader in the insulin market in the world.
Analysts and industry experts estimate the AI scale-up could deliver a 3-5% uplift in Biocon’s revenue or cost savings over the next three to four years, in line with industry estimates. The AI integration is aimed at improving efficiency, competitiveness, and speed across the value chain. “We are already past that decade of digitisation for competitive advantage…We are in the process of getting ourselves modernised and ready for the next wave of revolution that is happening… and that is around AI,” said Ghatnekar.
The company has set up a steering committee with the CFO, CTO and the CHRO to spearhead its AI roadmap. “We have set up an office of AI sponsored by our CEO,” he said.Biocon is already seeing measurable gains in procurement, where AI tools are helping teams identify multiple suppliers, widen vendor base and improve price.
“The landscape of the industry today, these two disciplines (technology and biotechnology) are actually converging differently,” said Ghatnekar. “If you look at the competitive landscape within our industry now, companies like Samsung are also getting into pharmaceuticals and more specifically into biosimilars. And Samsung at its own core DNA is an electronics company.”
The increased use of AI to accelerate molecule discovery could significantly compress drug development timelines from roughly six years to around four thus enhancing speed to market, said experts.
