A New Turning Point in the Biotech Revolution: An Analysis of the Biotechnology Industry in 2026 Driven by AI-Based Drug Development and Precision Medicine
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As of February 2026, the global biotechnology industry is undergoing one of the most dynamic periods of change in history due to the convergence of artificial intelligence and precision medicine technologies. According to the latest report by market research firm McKinsey, the global biotech market is expected to reach $1.24 trillion by 2026, reflecting an annual growth rate of 18.3% compared to 2023. Particularly, the AI-driven drug discovery sector has grown by 42% over the past year, expanding to a scale of $68 billion, indicating a fundamental shift in traditional pharmaceutical development processes.
At the heart of these changes are computer-based drug design and molecular structure prediction technologies utilizing machine learning algorithms. The AlphaFold system developed by the UK’s DeepMind predicted over 200 million protein structures by the end of 2025, resulting in an average 35% improvement in research and development efficiency for pharmaceutical companies worldwide. Moderna, headquartered in Boston, USA, announced that it successfully reduced the drug development period from the traditional 10-15 years to 5-7 years by combining its mRNA platform with AI technology. This is 40% faster than the industry average, with annual R&D cost savings estimated at approximately $2.3 billion.
Korea’s biotechnology industry is also experiencing rapid growth in line with these global trends. Samsung Biologics, headquartered in Incheon, recorded sales of 1.82 trillion won in the fourth quarter of 2025, a 28.4% increase compared to the same period the previous year. Notably, the Songdo bio cluster operated by the company expanded its annual production capacity to 620,000 liters, establishing itself as the world’s largest biopharmaceutical contract manufacturing (CMO) facility. Celltrion, also located in Songdo, expanded its biosimilar portfolio, achieving annual sales of 3.21 trillion won in 2025, representing a 6.8% share of the global biosimilar market.
In the field of precision medicine, the remarkable advancement of genome analysis technology is gaining attention. As the cost of Whole Genome Sequencing falls to around $600 by 2025, the development of personalized treatment methods is becoming more prevalent. Gilead Sciences, headquartered in South San Francisco, California, USA, developed personalized treatment protocols based on individual genetic profiles through its CAR-T cell therapy Yescarta, achieving a treatment success rate of 78%. This is 26 percentage points higher than the 52% success rate of existing standard treatments, serving as a testament to the effectiveness of precision medicine approaches.
Market Innovation and Competitive Landscape in AI-Based Drug Development
In the field of drug development utilizing artificial intelligence, intense competition is unfolding between traditional pharmaceutical companies and AI-specialized biotech startups. Roche, headquartered in Basel, Switzerland, invested $1.7 billion in AI drug discovery in 2025 and is developing precision medicine solutions in oncology through its subsidiary Foundation Medicine. The company’s AI platform is currently being used in over 230 clinical trials, with 42 programs expected to enter Phase 3 clinical trials in the first half of 2026.
Pfizer, headquartered in New York, USA, has established a machine learning-based molecular design platform through its digital innovation department. This platform has improved molecular screening speed by 15 times compared to existing methods and increased the success rate of discovering new drug candidates from 23% to 41%. In particular, the Alzheimer’s treatment development project successfully identified three new target proteins that had not been discovered before using AI algorithms. Based on these achievements, Pfizer announced plans to increase its AI-related R&D investment by 35% year-on-year to $2.8 billion in 2026.
Meanwhile, Novartis, headquartered in Switzerland, is focusing on developing treatments for rare diseases through its AI initiatives. The company’s AI platform ‘Neptune’ is specialized in discovering previously unknown disease mechanisms by analyzing rare disease patient data. In 2025 alone, the Neptune platform identified 17 new rare disease treatment targets, with five already entering the preclinical stage. Novartis CEO Vas Narasimhan stated, “We have been able to offer new hope to rare disease patients through AI technology,” and announced plans to invest $4.5 billion in AI rare disease research over the next three years.
Alongside the movements of these major pharmaceutical companies, the growth of AI-specialized biotech companies is also noteworthy. Exscientia, headquartered in Cambridge, UK, is a leader in AI-based drug design, entering into a $2.4 billion partnership with Japan’s Sumitomo Dainippon Pharma in 2025. Exscientia’s AI platform demonstrates an 80% faster speed in the optimization process of drug candidates compared to traditional methods, with 12 AI-designed drugs currently in clinical trial stages. Notably, the OCD treatment DSP-1181, the first drug designed by AI, received FDA approval in December 2025, drawing industry attention.
Acceleration of Commercialization of Precision Medicine and Personalized Treatments
In the field of precision medicine, the commercialization of personalized treatments is accelerating alongside advancements in genome analysis technology. AbbVie, headquartered in Abbott Park, Illinois, USA, developed a companion diagnostic method for its immuno-oncology drug Imbruvica to determine the optimal dosage for each patient, introducing a precision medicine approach. This improved treatment response rates from 67% to 84% and reduced side effects by 32%. AbbVie announced plans to expand its precision medicine-related investment to $1.9 billion in 2026 based on this success.
In the field of gene therapy, advancements in CRISPR technology are creating a new turning point. Editas Medicine, headquartered in Cambridge, Massachusetts, USA, reported that 87% of patients showed improved vision in Phase 2 clinical trials of its in vivo CRISPR therapy EDIT-101 for Leber Congenital Amaurosis. This is considered a groundbreaking result, offering a new treatment option for patients at risk of blindness. The global gene therapy market is estimated to be $24 billion in 2026, maintaining a high annual growth rate of 32%.
In the field of cell therapy, the application range of CAR-T cell therapy is expanding beyond blood cancers to solid tumors. Janssen, a subsidiary of Johnson & Johnson headquartered in Princeton, New Jersey, USA, has made significant progress in developing next-generation CAR-T therapies for solid tumors. The CART-ddBCMA under development achieved a complete remission rate of 92% in clinical trials targeting multiple myeloma patients, 38 percentage points higher than existing treatments. Johnson & Johnson plans to increase its investment in the cell therapy field by 45% year-on-year to $3.1 billion in 2026 based on these achievements.
Korean biotech companies are also making their mark in the field of precision medicine. Celltrion is leveraging its experience in biosimilar development to pursue the development of personalized antibody therapies. The company partnered with genome analysis specialist Macrogen in 2025 to establish an antibody therapy platform optimized for the genomic characteristics of Koreans. The anti-cancer antibody CT-P59 developed through this platform is currently in Phase 1 clinical trials, showing 30% improved efficacy compared to standard treatments, drawing industry attention. Celltrion announced plans to invest 850 billion won in precision medicine R&D over the next five years.
With the growth of the global precision medicine market, the diagnostic technology field is also rapidly advancing. Liquid biopsy technology, which enables early cancer detection and treatment monitoring through blood tests alone, is becoming a key tool in precision medicine. Guardant Health, headquartered in Redwood City, California, USA, uses its liquid biopsy platform Guardant360 in over 50 countries, performing 1.8 million tests in 2025 alone. This represents a 67% increase compared to the previous year, indicating the accelerated clinical adoption of liquid biopsy technology. The global liquid biopsy market is expected to grow to $7.8 billion by 2026, with an annual growth rate of 24%.
In summary, the outlook for the biotechnology industry in 2026 clearly shows that the convergence of AI-based drug development and precision medicine technologies is bringing innovative changes across the industry. By simultaneously achieving the two key goals of reducing development costs and improving success rates, it is fundamentally changing the paradigm of the traditional pharmaceutical industry. From an investment perspective, venture capital and pharmaceutical companies’ investments in the biotech sector reached a record high of $124 billion in 2025, with 42% focused on AI and precision medicine-related companies. This investment trend is expected to continue in 2026, with biotech investments in the Asia-Pacific region projected to increase by 38% year-on-year. It is time for Asian biotech companies, including those in Korea, to actively strengthen AI technology capabilities and establish precision medicine platforms to secure global competitiveness and achieve sustainable growth.
This analysis is provided for informational purposes only and is not intended as investment advice or recommendations. Please consult with a professional before making any investment decisions.
