A New Turning Point in Biotechnology Innovation: The Era of AI-Driven Drug Development and Personalized Medicine
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Innovative Shift in AI-Driven Drug Development
As of 2025, the biotechnology industry stands at the forefront of the most radical changes in its history. The advancement of artificial intelligence and machine learning technologies is fundamentally redefining the drug development process, altering not only technological progress but also the entire economic structure and competitive landscape of the industry. According to a recent McKinsey report, biotech companies utilizing AI-based drug development platforms are reducing development timelines by an average of 40-60% compared to traditional methods, with success rates improving from 10-15% to 25-30%.
At the core of this transformation lies big data analysis and predictive modeling at the molecular level. The establishment of in-house AI research labs by global pharmaceutical giants like Roche in Basel, Switzerland, and Johnson & Johnson in New Jersey, USA, with annual investments exceeding $5 billion in AI-based R&D, underscores the significance of this trend. Notably, Roche began full-scale operation of its AI-based antibody therapy development platform through its Genentech subsidiary by the end of 2024 and announced that three candidate substances have already entered Phase 1 clinical trials.
Korea’s biotech ecosystem is also rapidly evolving in line with these global trends. Samsung Biologics in Incheon reported a 15% improvement in production yield by implementing an AI-based biopharmaceutical production optimization system in the first half of 2025, which is expected to generate approximately $300 million in additional annual revenue. Similarly, Celltrion in Songdo achieved a 30% reduction in biosimilar development time through its proprietary AI platform and plans to initiate three new biosimilar clinical trials in the second half of 2025.
Acceleration of Commercialization in Personalized Medicine
Another significant change in the biotechnology sector is the full-scale commercialization of personalized medicine. With the cost of genomic analysis plummeting from $1,000 in 2020 to below $200 by 2025, genome-based therapies for large populations have become economically viable. Deloitte’s Global Healthcare Outlook report forecasts that the personalized medicine market will grow from $742 billion in 2025 to $1.28 trillion by 2030.
Particularly noteworthy is the combination of CAR-T cell therapy and gene editing technologies. Following the FDA approval of Moderna’s mRNA-based personalized cancer vaccine in late 2024, there has been a surge in biotech companies worldwide adopting similar approaches. Moderna’s personalized cancer vaccine, which designs custom mRNA based on the genetic characteristics of individual tumors, demonstrated a 40% improvement in survival rates compared to standard treatments in clinical trials.
Novartis, based in Basel, Switzerland, is already leading the personalized treatment field with its CAR-T cell therapies Kymriah and Yescarta, recording annual sales of $3.5 billion as of 2025. Furthermore, Novartis is developing a next-generation CAR-T design platform utilizing AI to predict treatment efficacy and minimize side effects. This platform analyzes patients’ immune profiles in real-time to propose optimal CAR-T cell designs, showing a 25% improvement in treatment response rates compared to conventional methods in early clinical data.
In the Asian market, investment and R&D in personalized medicine are also active. Chinese biotech companies are particularly aggressive, with BeiGene in Beijing announcing a $1.2 billion investment in personalized antibody therapy development in the first half of 2025. Japan’s Takeda Pharmaceutical is also developing region-specific treatments by building an Asian genome database centered on its Osaka research lab.
In Korea, the growth of the precision medicine sector is notable. The Korean precision medicine market is estimated to be approximately $4.5 billion as of 2025, with an annual growth rate exceeding 15%. Particularly, the development of Korean-specific treatments as part of the K-Bio Grand Challenge project is yielding tangible results. The Korean genome database, jointly established by Samsung Medical Center and Seoul National University Hospital, already holds data from over 500,000 individuals, and a drug response prediction model tailored to Koreans has been developed based on this data.
Investment patterns in the biotechnology field are also undergoing significant changes. Venture capital is focusing more on digital health and AI-based biotech rather than traditional drug development, with over 60% of global biotech investments in the first half of 2025 concentrated on AI and data analytics companies. This marks a significant increase from 35% in 2020. Major investment institutions like Andreessen Horowitz, Google Ventures, and Johnson & Johnson Innovation have collectively identified AI-based drug development and personalized treatment platforms as core investment areas.
Notably, the business models of biotech startups are diversifying. Unlike the past focus on single drug development, the current trend is towards integrated business models combining B2B services, data licensing, and personalized treatment services based on AI platforms. Exscientia, based in Cambridge, UK, recorded $400 million in revenue in the first half of 2025 with a hybrid model that licenses its AI-based drug development platform to pharmaceutical companies while operating its own drug pipeline.
Changes in the regulatory environment are also supporting the growth of the biotech industry. The FDA released new guidelines for AI-based drug development at the end of 2024, officially approving the use of AI in clinical trial design and data analysis. The European Medicines Agency (EMA) has adopted similar policies, significantly simplifying the regulatory approval process for AI-based biotech companies. Korea’s Ministry of Food and Drug Safety also announced plans to expand the K-New Drug Fast Track system in the second half of 2025 to operate a regulatory sandbox for AI-based drug development.
Market Outlook and Investment Opportunities
As of the end of 2025, the outlook for the biotechnology market is very positive. According to the latest report from Grand View Research, the global biotech market size is expected to grow from $1.38 trillion in 2025 to $2.44 trillion by 2030, representing a high annual growth rate of 12.1%. Particularly, the AI-based drug development sector is projected to grow at an annual rate of over 25%, and the personalized treatment sector is expected to grow by more than 18%.
From an investment perspective, the current biotech sector offers attractive investment opportunities where technological innovation and commercial success are balanced. Platform-based biotech companies, in particular, are attracting attention from investors due to their high scalability and profitability. According to Goldman Sachs’ analysis of the biotech sector, the average return on biotech stocks in the second half of 2025 is expected to exceed the S&P 500 by 15%.
In the case of the Korean biotech market, rapid growth continues, supported by the K-New Deal 2.0 policy and core bio-health projects. According to the Korea Biotechnology Industry Organization, domestic biotech production is expected to exceed 18 trillion won by 2025, an increase of over 80% compared to 2020. Growth is particularly prominent in biopharmaceuticals and personalized treatment sectors, with large companies like Samsung Biologics and Celltrion expected to further strengthen their positions in the global market.
However, despite these positive prospects, the biotech industry still faces significant challenges. High R&D costs, long development timelines, regulatory risks, and intense competition remain major risk factors. Additionally, the rapid advancement of AI and big data technologies is widening the technological gap quickly, making it likely that companies lacking innovation capabilities will be left behind in the market. In this environment, investors need a strategy to selectively invest in companies that possess both technological prowess and commercialization capabilities.
Ultimately, the future of the biotechnology industry will be determined at the intersection of technological innovation and the development of patient-centered therapies. The combination of AI and personalized medicine has the potential to fundamentally improve the efficiency and accessibility of the entire healthcare system, beyond merely introducing new treatments. Amidst this wave of change, biotech companies with innovative technologies and solid business models are expected to emerge as leaders in the next-generation healthcare industry.
This analysis is intended for informational purposes only and should not be interpreted as investment advice or a recommendation. All investment decisions should be made at the individual’s discretion and responsibility.
