Artificial intelligence (AI) and innovative pharmaceutical treatments in the weight loss market are bringing renewed interest to the technology and healthcare sectors.
Here are some companies working on both AI and weight loss: novo nordisk (NYSE:NVO). The Danish pharmaceutical giant is the brains behind popular diabetes and obesity drugs Ozempic, Libersus and Wigoby.
Let’s dig into how the company is making waves in both AI technology and drug development.
The intersection of healthcare and technology
From statistical analysis of data in clinical trials to machines that transform and hone the pool of molecules that can become breakthrough drugs, technology and healthcare go hand in hand.
Novo Nordisk has long been known for its insulin treatments. However, its commitment to patient care and product innovation has enabled the company to develop new medicines and expand its horizons, especially in the weight loss field.
The company’s development of a compound called semaglutide led to Ozempic, Rybelsus, and Wegovy. Ozempic and Libersus are used to treat diabetic patients. In contrast, Wegovy is approved by the Food and Drug Administration (FDA) for chronic weight management. These three blockbuster drugs all belong to a class of therapeutic agents called glucagon-like peptide 1 (GLP-1) agonists.
Although these medical discoveries have been celebrated, Novo Nordisk is not resting on its laurels. The company remains focused on innovation, and management has provided fundamental information about what role artificial intelligence (AI) will play.
investment in the future
The use cases surrounding AI in the pharmaceutical industry may seem obvious at first glance. Novo Nordisk outlined that artificial intelligence (AI) is helping the company process large amounts of data from a broader patient population.
Essentially, this could theoretically increase the number of drug candidates that can be brought into clinical trials. But more importantly, AI can play a role in identifying when these targeted drugs will be ready for testing, thereby reducing the risk of rushing new products into testing before they are ready. .
A few days ago, news broke that the Novo Nordisk Foundation had signed an agreement with France-based data company Eviden to support AI development in Denmark. Pursuant to the agreement, Eviden: Nvidiahardware and software systems. The supercomputer, called Gefion, will feature more than 1,500 Nvidia graphics processing units (GPUs) and leverage the chipmaker’s CUDA software service.
The origins of building supercomputers are to help spearhead advances in research and innovation across healthcare, life sciences, and sustainable energy.
While such a project may seem more ambitious than anything else, Novo Nordisk is not the first healthcare company to tackle quantum computing. IBM has installed its own quantum computer, Quantum System One, at the Cleveland Clinic to enhance research and development.
What does this mean for Novo Nordisk?
Faster computing helps process clinical data faster and, in some cases, more accurately. As a result, pharmaceutical companies may be able to identify expanded indications or advance pipelines of new candidates more quickly.
Diabetes and obesity care is already a huge market and is expected to grow over the next few years. According to research, by 2050 there may be 1 billion diabetics worldwide. Additionally, Novo Nordisk’s already strong pipeline makes me optimistic about the company’s potential in the coming years.
I am encouraged by Novo Nordisk’s foray into AI and am optimistic that this technology will help strengthen the company’s long-term potential. Moreover, Novo Nordisk’s involvement in supercomputers sheds light on something deeper. The company ultimately helps fund clinical research on a broader level, which can lead to medical breakthroughs in a variety of fields.
To me, this shows Novo Nordisk’s focus on patient care, regardless of whether future breakthroughs impact the company’s core markets. I believe Novo Nordisk should be considered a leader in healthcare and its focus on AI-powered innovation should not be overlooked.
Should you invest $1,000 in Novo Nordisk right now?
Before buying Novo Nordisk stock, consider the following:
of Motley Fool Stock Advisor Our analyst team has identified what they believe Best 10 stocks What investors can buy right now…and Novo Nordisk wasn’t among them. These 10 stocks have the potential to generate impressive returns over the next few years.
stock advisor We provide investors with an easy-to-understand blueprint for success, including guidance on portfolio construction, regular updates from analysts, and two new stocks every month.of stock advisor Since 2002, the service has more than tripled S&P 500 returns*.
See 10 stocks
*Stock Advisor returns as of March 21, 2024
Adam Spatako holds positions at Novo Nordisk and Nvidia. The Motley Fool has a position in and recommends Nvidia. The Motley Fool recommends International Business Machines and Novo Nordisk. The Motley Fool has a disclosure policy.
Discover the Hidden Gem: One of the AI-Powered Healthcare Stocks to Dominate the Market Originally published by The Motley Fool
