📺 Stream EntrepreneurTV for Free 📺

AI Is Transforming Drug Matching for Cancer, Rare Diseases — Here's How One AI pharmaceutical startup works backward, starting from drugs already on the market.

By Sherin Shibu

Key Takeaways

  • Transcripta Bio attempts to take on rare diseases by matching older, existing drugs to newer use cases.
  • The startup's unusual approach could be a more cost-effective solution to drug matching.
  • AI is being used in healthcare settings across the private and public sectors.
entrepreneur daily

AI tools are changing how pharmaceutical companies and public health institutions think about finding drugs to treat rare diseases.

For example, Transcripta Bio, a Silicon Valley-based pharmaceutical startup, is using AI to match existing medications with new use cases, according to a profile in Bloomberg this week.

The company uses AI software to identify drugs that could alleviate the effects of rare diseases. Instead of narrowing in on one condition to see if an experimental drug works on the genes associated with that condition, Transcripta works backward by starting from drugs already on the market.

Related: AI Is Changing How Businesses Recruit for Open Roles — and How Candidates Are Gaming the System

The startup tests drugs identified as a good match by its AI software to determine if those drugs have additional use cases and also affect genes associated with rare diseases.

Transcripta's unusual approach could be more cost-effective. The company claims that it can conduct screenings across all known rare genetic diseases for about $2 million, which is what a pharmaceutical company might pay to start research on a new drug for one disease, per Bloomberg.

The company has raised about $30 million to date.

"It's now much more capital efficient," Chris Moxham, chief executive officer and chief scientific officer at Transcripta, told the publication. "It's not just one disease at a time."

Related: A New AI Chatbot Is Revolutionizing Business School Curriculum and Accreditation — Here's What It Could Change

Other startups, including Century Health, which secured $2 million in pre-seed funding last month, are also trying to harness existing data about drugs for new, real-time applications. Century Health in particular is working to commercialize drug breakthroughs for diseases like Alzheimer's with its AI platform.

It's not just startups that are interested in AI applications for healthcare. AI chip giant Nvidia created an AI cloud service specifically for AI-aided drug development and released two dozen new AI tools last month for healthcare.

One standout tool was a bot called Hippocratic that outperformed real nurses in all areas, including how a medication impacted labs and how a lab value compared to a target range.

Related: Microsoft's New AI Can Make Photographs Sing and Talk

On the public health side, researchers at the National Cancer Institute (NCI), which is part of the National Institutes of Health (NIH), created an AI tool last week called PERCEPTION that showed promise in predicting if a patient would respond to certain cancer treatment drugs over others.

In a study published in Nature Cancer on Thursday, the researchers wrote that PERCEPTION outperformed the industry standard for predictors "in all clinical cohorts."

Sherin Shibu

Entrepreneur Staff

News Reporter

Sherin Shibu is a business news reporter at Entrepreneur.com. She previously worked for PCMag, Business Insider, The Messenger, and ZDNET as a reporter and copyeditor. Her areas of coverage encompass tech, business, strategy, finance, and even space. She is a Columbia University graduate.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business Culture

Avoid These 4 Blunders When Creating a Company Culture

To get a complete picture of whether your brand's atmosphere needs work, observe factors like absenteeism, participation, and body language.

Data & Recovery

Manage and Share Files Easier with a Great Deal on This Cloud Storage Subscription

Save 68% on a FolderFort subscription — the best price online.

Money & Finance

This Toxic Money Habit Is Becoming More Common — If You've Picked It Up, Your Finances Are at Serious Risk, Expert Warns

Kaitlin Walsh-Epstein, chief marketing officer at digital banking platform Laurel Road, reveals the frequent mistake.

Starting a Business

They Sold the Legendary CRUMBS Bakeshop and 10 Years Later Bought It Back for Just $350. Now the Company Is Cooking Up $1 Million in Sales.

Founders Mia and Jason Bauer discuss the birth and rebirth the bakery brand that launched a global cupcake obsession.

Marketing

How to Combine Your Online Marketing Tacts With In-Person Marketing

Here's how to combine offline and online marketing approaches for a better outcome for your business.