SandboxAQ, an AI startup spun off from Alphabet (GOOGL.US) and strategically backed by NVIDIA (NVDA.US), officially released a large-scale synthetic dataset on June 18 local time, aimed at accelerating global new drug development processes by simulating interaction mechanisms between drug molecules and proteins. This tech newcomer, which has raised nearly $1 billion in cumulative funding, is attempting to break the spatial and temporal constraints of traditional laboratory research and reconstruct the underlying logic of drug screening through computational power.

NVIDIA has launched BioNeMo and made extensive investments in AI pharmaceutical companies. Google acquired DeepMind and spun off Isomorphic Labs, which publicly stated in July that clinical trials are "very close."

From an industry chain perspective: Harbour BioMed has launched the DiOrion platform, while Silico Medicine empowers compliant IND (Investigational New Drug) submissions, and Insilico AI provides full integration from hypothesis and molecules to clinical trials and launches. Leading pharmaceutical companies including Merck, Pfizer, Eli Lilly, and BMS have deployed tens of billions of dollars in AI pharmaceutical-related companies.

According to statistics from Pharmcube on the top 20 global AIDD (AI Drug Discovery) related transaction upfront payments and total amounts, major transactions have been concentrated in the past five years, with total amounts exceeding $50 billion.

Shanxi Securities pointed out that the continuous emergence of large-scale order collaborations between AI pharmaceutical companies and multinational corporations has validated the feasibility of AI pharmaceutical companies achieving profitability through technology licensing and revenue-sharing models, and demonstrates the urgent demand from traditional pharmaceutical giants for AI-assisted drug development.

Guojin Securities released a research report stating that AI new drug breakthroughs are imminent, with preference given to those with rich pipelines and strong execution capabilities. As the AI pharmaceutical industry approaches its inflection point, the first important milestone will inevitably be the approval and launch of humanity's first AI-driven drug; in other words, regardless of whether models or data are superior, the first validated blockbuster drug will be the focal point.

Additionally, with numerous pharmaceutical and cross-industry companies entering the field, preference should be given to those whose barriers deepen over time. Since AI pharmaceuticals represent an entirely new track of technology crossover, the future's first breakthrough could come from AI pharmaceutical companies, traditional generic/innovative leaders with forward-looking cultivation in the AI field, or new technology companies from non-pharmaceutical sectors.

AI pharmaceutical-related Hong Kong stocks:

XtalPi (02228): XtalPi recently issued a profit alert, expecting the group's consolidated revenue for the interim period ending 2025 to be no less than RMB 500 million, representing an increase of at least approximately 387% year-on-year; net profit of no less than RMB 50 million; adjusted net profit of no less than RMB 120 million. This marks the group's first achievement of semi-annual profitability. The improved financial outlook is mainly due to the group's collaboration with DoveTree Medicines LLC and its affiliates, where the group provides drug discovery solutions and services to DoveTree based on its end-to-end artificial intelligence drug discovery platform and integrated "AI+robotics" technology, driving significant revenue growth. The group received an upfront payment of $51 million, which has been recognized as revenue for the group's 2025 interim period and made a significant contribution to the group's revenue during the reporting period.

Viva Biotech (01873): Viva Biotech began deploying AI pharmaceuticals five years ago. Currently, AI order proportion: AI-related orders account for 12% of newly signed orders and show a growing trend. The company's AIDD and CADD platforms possess capabilities in proprietary algorithm and platform development, experience in developing various drug modalities, and fully leverage Viva's structure-based drug development advantages. Building on this foundation, Viva is transitioning from a stage primarily focused on empowering various drug development phases through computational methods to a new stage of AI-driven drug design that transforms drug design paradigms.