China Pharma & Biotech: Take-aways from the Bernstein China Conference on AI drug dvelopment

At Bernstein's China Conference (Nov 3-5 themed China Next Winners Conference - From AI to Alpha), a panel with Jeff Zhou (CFO, XtalPi) and Philip Duong (Head of International Business, SBP Group) discussed AI in drug development. AI is accelerating discovery: XtalPi cut target-to-IND timelines to under nine months for some antibody, peptide and siRNA programs, and SBP can generate PCCs on its protein degrader platform in eight to nine months, with AI prediction reducing synthesized molecules from a few hundred to under 100. Around 10-12 AI-assisted drugs are in the clinic, but faster execution has not yet demonstrated better Phase 1-to-2 or Phase 2-to-3 success rates; clinical development accounts for roughly 80% of failures and cost, with Phase 3 potentially exceeding USD 1bn, and evidence of superior success rates may take four to ten years. Proprietary data and lab execution are central advantages, with SBP holding over 150 ongoing trials and CNY700mn-plus digitalization investment