Core Viewpoint - Via Biotechnology (01873) experienced a significant stock price increase of over 20% following the release of its interim results, indicating positive market sentiment despite a decline in revenue [1] Financial Performance - For the six months ending June 30, 2025, the company reported revenue of 832 million RMB, a year-on-year decrease of 15.27% [1] - Shareholder profit attributable to the company was 122 million RMB, reflecting a year-on-year increase of 4.28% [1] - Basic earnings per share were reported at 0.06 RMB [1] - The gross profit margin improved to 40.8%, an increase of 6.3 percentage points compared to the same period last year, attributed to optimization in business structure and operational efficiency [1] AI Pharmaceutical Development - Via Biotechnology has been investing in AI pharmaceutical development for the past five years, with AI-related orders now accounting for 12% of new signed orders, showing a growth trend [1] - According to Guojun International, significant transactions in AI drug development have occurred in the last five years, totaling over 50 billion USD [1] - The development of generative AI in pharmaceuticals emphasizes the importance of building leading model barriers over time, with efficiency in model development and training experience being crucial [1] - Collaborations with large pharmaceutical companies in AI research and development create a positive feedback loop in data and model construction, enhancing the competitive moat of leading firms [1]

Core Viewpoint - The article emphasizes that AI is not just a trend but a transformative technology that can revolutionize various industries, particularly in the pharmaceutical sector, where it can significantly enhance drug development processes [2][3]. Market Demand - A sustainable AI business model requires a real market demand with tangible application scenarios, addressing customer pain points and ensuring strong payment capabilities from customers [4]. - The pharmaceutical industry is identified as an ideal sector due to its urgent need for AI in drug development, which is costly and time-consuming, with global top ten pharmaceutical companies expected to invest over $120 billion in R&D in 2024 [5]. Technological Maturity - AI must possess the capability to solve customer pain points, and the industry should have a data-rich environment to facilitate AI training and improvement [4][5]. - The drug development process generates vast amounts of data, making it a data-intensive and capital-heavy industry, particularly in the stages of drug molecule screening and design [5]. Human Element - The third critical factor for establishing a sustainable AI company is the human element, exemplified by the founding team of CrystalTech, which was established by three MIT postdoctoral researchers in quantum physics [7]. - CrystalTech has expanded its AI-driven capabilities beyond pharmaceuticals into materials science, petrochemicals, renewable energy, and agriculture, and is recognized as the first AI pharmaceutical company listed on the Hong Kong Stock Exchange with a market value exceeding HKD 20 billion [8]. AI in Drug Development - AI's role in drug development includes predicting protein structures, which is crucial for identifying drug targets and designing effective drug molecules [12][13]. - The integration of AI allows for a significant reduction in the time and cost associated with drug development by enabling virtual experiments and high-throughput synthesis of candidate molecules [16][21]. Collaboration of AI and Experiments - AI serves as an enabler rather than a complete replacement in drug development, necessitating a combination of computational simulations and real-world experiments to optimize the drug discovery process [22]. - The collaboration between AI-driven simulations and laboratory experiments provides timely feedback for model training and algorithm optimization, highlighting the interdependence of both approaches [22]. Investment and Growth - CrystalTech's early investments were influenced by the growing interest in biomedicine and the application of AI technologies, with significant backing from notable investors like Tencent [28][31]. - The company has focused on its core mission rather than chasing trends, which has positioned it well for success as the AI wave continues to evolve [32]. Future of AI in Industries - The article suggests that industries with easier and cheaper data acquisition will experience faster and deeper changes due to AI, with the pharmaceutical sector being a prime example [34]. - The early stages of drug discovery are highlighted as particularly advantageous for AI applications due to lower experimental costs and the ability to generate large datasets [34][35].