AI Pharma 2024 Scorecard: Losses, Layoffs, M&A, and Pivots — Who’s Breaking Through?

4Month7Day, with XtalPi2024The release of the full-year financial report, thus far, both domestically and internationallyAI+Listed drug research and development companies have all submitted their annual report cards.

2024Year isAIA Year of Transformation in the Pharmaceutical Industry,AI+Protein Engineering Wins Nobel Prize, BecomingAIMilestone Events in Life Sciences.

In the industry, the first large-scale M&A has emerged, with some companies returning to losses after turning a profit., some pipelines have gone through twists and turns, while othersConsecutivelyLayoffs, some business focusChangeChemical。

This article reviews several listedAIPharmaceutical Company2024Annual performance,As the first company in China to be listedAI+XtalPi's First Annual Report Post-IPO Adds Significant Highlights to This Review.

And withDeepSeekThe large model wave triggered by geopolitical uncertainty will continue to grow through change in 2025.。

Schrödinger: Fleeting Profit

2023Year，Well-established computational chemistry companySchrödinger Achieves First Profit Since Going Public。

Time has come to2024In the year, the company soon faced losses again, with a loss amount of1.871 Billion US dollars。

Schrödinger'sRevenue mainly consists of three parts:Software, Drug Development and Others，Compared with traditionalbiotechThe sources of income are diverse. However,And 2023 Year's2.167 Billion USD comparison,2024Year SchrödingerTotal annual revenue declined 4.2% To2.075 Billion US dollars。

Among them, the growth rate of software revenue has slowed down,Growth 13.3%`, reaching`1.804 Billion US dollars（The growth was17.4%），The main reason for the revenue growth isFrom Major ClientsIncrease in contract.

2024Year，SchrödingerDrug R&D Revenue is 2720 Million US dollars, and2023YearSame PeriodFor 5750 Million USD，This is partly due to a decrease in customer-confirmed revenue.

The biggest change is in other income.，ChinaOnlyFor 2360 Million USD。And2023In that year, the section was2.204 Billion US Dollars，Mainly originating from Takeda40Billion-dollar acquisitionNimbusTheTYK2Drug, Schrödinger has obtained more than1.472 Billion-dollar cash distribution.

As the author previously mentioned，NimbusBrought byOnlyOne-time income, as well as income from collaborations with multinational pharmaceutical companies, is difficult to sustain. As Schrödinger strengthens its self-developed pipeline, the current profitability may not last.

In terms of expenditure,Operating expenses for the whole year are 3.414 Billion USD, and2023 Year:3.181 Billion dollars, mainly due to the increase in R&D expenses.

As early as2018Year,Schrödinger began to build a team for drug development, whileBMS, Otsuka Pharmaceutical, Sanofi, and Eli Lilly, etc.10Multiple multinational companies have drug research and development collaborations, covering various fields such as oncology, metabolism, and autoimmune diseases.

Currently, the company has3Pipeline enters clinical stageIPeriod，CDC7 InhibitorSGR-2921 Already obtainedFDA Orphan Drug Designation for the Treatment of Acute Myeloid Leukemia，Expected to be announced in the second half of this yearIPeriod data. MALT1 InhibitorSGR-1505 Used for treatmentRecurrence/RefractoryB Patients with malignant tumors，Wee1/Myt1 InhibitorSGR-4174Used for treating patients with solid tumors.

In terms of platform construction, Schrödinger stated that it willAdvance its predictive toxicologyModel，Similarly, AI/ML Integrated into the platform workflow,Expand simultaneouslyBiological Products and Pharmaceutical PreparationsAnd other businesses。

2024In that year, Schrödinger further expanded its multinational pharmaceutical enterprise clients.11Month, SchrödingerAndNovartis（Novartis) Announced AchievementFor a period of3Year'sMulti-Target Research Collaboration。

Novartis willSchrödingerPayment1.5Billion US DollarsThe upfront payment, and may also receive up to approximately23USD milestone payments and product sales royalties.

Fortunately, the company's cash flow is healthy, as of2024 Year12 Month31 As of the date, Schrödinger's cash and cash equivalents were approximately 3.675 Billion US dollars，And this year1Lunanova's1.5USD billion upfront payment has been received。

Recursion：First Earnings Report After Acquisition

2024Year forAIPharmaceutical Listed CompaniesRecursionFor them, it was also a year of change and renewal.

Last year,Recursion CompletedTo competitors Exscientia TheM&A，This is alsoAIThe largest M&A deal in the pharmaceutical field.

This acquisition has strengthened RecursionProficiency in medicinal chemistry, able to collaborate withRecursionComplemented by a biology-focused platform.

Not only that, but the completion of the acquisition also enriches the company's pipeline., Partnership, PlatformThere has been a qualitative leap in both quality and talent.

After the merger and acquisition,Recursion SubsequentlyAnnounced layoffsPlan。Company Layoffs 20% ，Number of Employees in the Newly Merged CompanyAboutFor800Person.

2024 Year，RecursionNet loss is 4.637 Billion US Dollars, and 2023 YearNet loss is 3.281Billion US dollars，A large margin higher than last year. Among which, R&D expenses account for the majority.For 3.144 Billion US dollars，General and Administrative Expenses For1.108 Billion US Dollars。

DespiteRecursionThere is also a research and development pipeline, but unlike Schrödinger,The company mainly invested its R&D funds intoAIPlatform.

For exampleRecursionJointly launched with NVIDIASupercomputerBioHive-2，Also accumulates a large amount of data through automated laboratories, and subsequentlyDeveloped Phenom、MolPhenix AndMolGPS Multi-modalAI Model，Used to predict drug R&D outcomes.

Recursion's Original Intention from the Very BeginningIs Decoding Biology, that is,Truly understand biology at a more granular and interconnected level, and map out the digital landscape of biology.

As the CEO of the companyChris GibsonAccepting interviews stated:”I think in the next few years, there may be room for pure platform companies without assets. Investors may find that the scale of funds required to support both platforms and pipelines is too large.”

The company stated that in the future, it will alsoContinue to expand and upgrade its platforms, including chemical technology, machine learning, and transcriptomics platforms.

Of course, the company has not given up on advancing the pipeline. Currently, the company has6drugs have entered the clinical stage, among whichAI Best-in-Class Platform OptimizationCDK7 InhibitorHighly expected by the company.

As of 2024 Year12Month31Day，RecursionCash and cash equivalents are 6.03 Billion US dollars，ItsCashFlowWill continue to 2027Year.

Relay: Three rounds of layoffs in a year

Just a few days ago,RelayAnnouncementMajor Personnel Adjustments, Layoffs Approximately70Person.

In fact, this isRelayWithin one year3Layoffs again.As early as2024Year in7Month, layoffs about5%; Immediately following,10Month Again30People were laid off, accounting for about10%。

The Trigger for Layoffs IsRoche's SubsidiaryXtalPi TerminatesAndItsSHP2Allosteric InhibitorRLY-1971Cooperation,AndRefund the rights and interests toRelay，SubsequentlyRelayAlso stopped the development of the drug.

2024 Year，RelayNet loss for the year in China 3.377 Billion US dollars, and2023 Net loss for the year was3.420 Billion US dollars,Losses narrowed slightly.

In terms of revenue,2024 YearCompanyAnnual RevenueOnlyFor 1000 Million US dollars, and2023 Throughout the year in China2550 Million USD. MainlyOriginated fromRelayReduced collaboration revenue with Genentech.

At the same time,2024 The R&D expenses for the whole year were3.191 Billion US dollars,Resources are focused on core drugs.Clinical Development，And 2023 Throughout the year in China3.30 Billion US dollars.

In recent years, the company's pipeline has also undergone significant adjustments.

Sold a late-stage drug:WillFGFR2Inhibitorlirafugratinib（RLY-4008)The global rights are licensed toElevar Therapeutics。RelayWill gain in this transaction7500 Million USD upfront payment+ 4.25 Billion-dollar potential commercial milestone+10%Layered Royalties.

Suspension of the Development of Multiple Drugs:IncludingOral Small MoleculesCDK2Inhibitor、Preclinical Pan-Mutation SelectivityPI3KαInhibitor

Currently, the company only hasMutation Selectivity PI3Kα InhibitorRLY-2608This clinical-stage drug treats breast cancer and vascular malformations.

Company'sThe top priority is to continue advancing.RLY-2608, including inLaunch in Mid-Year RLY-2608 + Fulvestrant3 Phase Trial，For the treatment of breast cancer patients.

Fortunately, the company has ample cash and sufficient resources.2024 Year12 Month31 Day,CompanyCashAndCash equivalents are 7.813 Billion US dollars, FootTo support company operations until2027 The second half of the year.

 XtalPi: First Annual Report After Listing

Previously, the performance reviews were all dominated by overseas companies, but this time a Chinese company has finally appeared.

2024Year6Month, XtalPiAs the first18CRule-based listed companies land on the Hong Kong Stock Exchange and recently released their first earnings report after listing.

The report shows,2024YearXtalPi's revenue is2.66Hundred MillionRMB, year-on-year growth52.8%；The company's losses have further narrowed, to4.57Hundred MillionRMB，Year-on-year decrease13%。

XtalPiIncludeTwo Major Business Segments: One is to provide drug discovery solutions, and the other is intelligence.RobotSolutions mainly include solid-state R&D services and automated chemical synthesis services.

From the perspective of revenue structure, intelligent robot solutions have become the most important driver of revenue.2024In that year, this portion of the revenue was1.62100 million yuan, a year-on-year increase of87.8%。The company stated that due toXtalPiR&D solutions (such as TCM and electrolyte robot solutions) have significantly driven growth.

Drug R&D revenue is1.03billion yuan, a year-on-year increase of18.3%，2024Year has passed, connecting with both domestic and international20Multiple companies have reached cooperation, including Johnson & Johnson, Ubithera, etc.

2024In the year, XtalPi's R&D expenditure reached a high of4.18100 million yuan, a decrease compared to last year13%, due to the enhanced capabilities of XtalPi's technology platform and improved efficiency in R&D activities, as well as the reduced cost of sample materials resulting from decreased consumables.

The financial report disclosed that XtalPi's cash and cash-like asset reserves have broken through40100 million RMB,Among which, cash and cash equivalents exceed11Million RMB, with substantial cash reserves.

This Year1Month, XtalPiPer Share4.28Hong Kong DollarPriceSuccessful Placement，Net proceeds of approximately11.25HKD (approximately RMB10.5(Billion Yuan)，Further enhance XtalPi's cash flow.

Apart fromAI+Beyond drug development, XtalPi has been expanding the application of automated robots in multiple fields, especially in the materials sector, striving to shed the label of AI-driven pharmaceuticals.

In 2024,XtalPiWith GCL Group、Fangda CarbonCompanies in fields such as new energy materials and carbon-based materials signed strategic cooperation agreements, among which...GCL Group's total cooperation exceeds 1 billion yuan.

2024Year, XtalPi successively incubatedAI+New Material CompanyDeep PrincipleAndFuchel Biotech。Deep PrincipleThe founding team comes fromMIT Accelerates New Material Development through Generative AI and Quantum Chemistry.

Fucheng BiotechThe team comes fromUCBerkeley，Established with XtalPi AI R&D Strategic Cooperation，Develop New Plastics.

XtalPi stated that AI for Science models in vertical fields centered on "high-quality data-driven" approaches will become a disruptive force in the future.

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