Private Equity
Andrea Alms Video: Money In Motion 163 -Revenue Models Of The AI Drug Development Process Part 2
June 2025 - Private Equity
Andrea Alms Video: Money in Motion 163 -Revenue Models of the AI Drug Development Process Part 2
TRANSCRIPT Hello, my name is Andrea. Alms. I am a technology investor and financial manager and this is your money in motion.
In the last episode, we introduced the type of revenue models for AI drug development process. In conclusion, it appears they fall across the spectrum from either one end of the spectrum service providers to the other end of drug development entities themselves.
The most common is a hybrid model. But let's look at specific examples such as recursion and Schrödinger's. Apparently not all hybrid models are the same. On this scale of business models versus value captured. We see that recursion is a hybrid model, yet focused on protein design at the lower left. Recursion sits at the positioning of partnerships and proprietary assets, versus at the top right sits Schrodinger's, which is focus on molecular models.
Schrodinger's cell software is licensing and OS and horizontal tools. Both are publicly traded companies who moved into the AI drug development process from their respective strengths. Schrodinger is traditionally a software company, and of course recursion is a pharmaceutical company. Clearly, with everyone moving towards AI from every single angle possible, it is a highly fragmented market and lots of places for people to make revenue.
Here are some of the 210 players across the globe claiming to use AI technologies for drug discovery processes. It really does look like the Wild West, and no one has claimed the majority stake in any one area. Thank you. This is your money. Your money in motion.