On October 9th, following the Nobel Prize in Physics, artificial intelligence (AI) once again became the focus of the Nobel Prize. 48-year-old Google AI guru Hassabis and 39-year-old Jop received the Nobel Prize in Chemistry. The two Nobel prizes focus on AI, reflecting the global academic community's high praise for deep learning and AI technology.

In fact, the wind of AI technology has already blown into many industries. For example, under the deep empowerment of artificial intelligence (AI) algorithms and computing power, biomedical research has achieved unprecedented speed and accuracy, ushering in an efficient, personalized, and revolutionary new era. Consultancy McKinsey stated in a report that artificial intelligence is a 'rare historic opportunity' for the pharmaceutical industry, and it is estimated that generative AI can bring annual economic value of $60 billion to $110 billion to the pharmaceutical and medical industries.

On October 10th, just after the announcement of the Nobel Prize in Chemistry to the AlphaFold developers, Jingtai Technology-P (02228) announced that its subsidiary Ailux Biologics signed a major molecular drug discovery AI platform authorization agreement with Janssen Biotech under Johnson & Johnson, authorizing the use of the XtalFold platform, a protein structure prediction algorithm similar to AlphaFold, for biopharmaceutical research and development, attracting wide attention in the industry.

In addition, in the field of miRNA where this year's Nobel Prize in Physiology or Medicine is awarded, Jingtai Technology also has layouts, such as partnering with CKlife Sciences to develop a molecular diagnostic model for cancer prognosis based on miRNA. Moreover, the direction of physics+AI in the Nobel Prize in Physics aligns highly with Jingtai's quantum physics+AI label, with its technology and services hitting three Nobel Prizes at once, attracting the market's focus on this first listed Hong Kong stock under the 18C rule.

On June 13th this year, Jingtai Technology was listed on the Hong Kong Stock Exchange, becoming the first domestic AI pharmaceutical stock and the first listed special technology company under the Hong Kong Stock Exchange's 18C rules. According to the Intelligent Finance APP, Jingtai Technology is one of the leaders in drug and material science research and development using quantum physics, artificial intelligence, and robotic automation, mainly providing customers with drug discovery solutions and intelligent automation solutions.

The reason why this company is known as the first domestic AI pharmaceutical stock is that one of its main businesses is to fully empower the domain of small molecule pharmaceutical industry chain from drug research and development to clinical trials before AI technology, improving the research and development efficiency and success rate of biomedical customers and achieving innovative breakthroughs.

Currently, the company is accelerating the transformation of research and development achievements in the field of ai pharmaceuticals, has built a unique technology-commercialization ecological closed loop, and has been validated by the market. According to Siasun Technology, it has served more than 300 innovative drugs, new materials companies, and scientific research institutions, with 16 of the top 20 pharmaceutical companies in the world being its customers.

According to the Wisdom Financial APP, Siasun Technology first emerged on the scene at Pfizer's 2016 global blind test of crystal structure prediction. The company signed a ten-year strategic cooperation agreement with Pfizer following a 100% accuracy in predictions.

It is worth mentioning that in the development of Pfizer's small molecule oral drug PAXLOVID, Siasun Technology, through ai calculations and predictions, identified the most stable crystalline form of the drug molecule, accurately matching it with Pfizer's experimental data. In just 6 weeks, they completed the crystalline form prediction research that traditionally takes over 6 months, significantly shortening the development cycle and accelerating the drug's market launch.

Since then, Siasun Technology's business in the field of ai pharmaceuticals has been expanding, transitioning from crystalline development to accelerating the development of innovative drugs and gradually building cutting-edge technological barriers.

The company's solid technology has been recognized by global industry customers. For example, in 2023, Siasun Technology cooperated with Eli Lilly and Co. to develop innovative drugs. The cooperation's total prepayment and milestone revenue reached 0.25 billion dollars, breaking the record for the single pipeline amount in China's ai pharmaceutical industry that year.

In addition to small molecule drug development, Siasun Technology has now established a leading large molecule drug discovery laboratory in the industry. As of now, Siasun Technology's large molecule business has signed contracts with over 20 global customers, with approximately half coming from overseas, involving early-stage large molecules (including antibodies) discovery, antibody engineering, and computational services based on artificial intelligence models.

Relying on its technology platform, Siasun has also incubated a series of biomedical startups. Among them, Siasun Technology and cklife sciences' global first diffuse gastric cancer targeting drug has obtained the IND approval from the FDA, ready to commence clinical trials; Lamang Biology's metabolism-enhanced ultra-low-dose CAR-T cell therapy drug has helped over 20 adult and pediatric patients be discharged; and the global first small molecule drug for primary hyperoxaluria developed in cooperation with Merad has obtained FDA qualification for pediatric rare diseases and is steadily progressing towards clinical trials.

From a market perspective, in the context of the reverse Moore's Law in the downstream new drug R&D market, the cost-saving and efficiency-improving role of AI technology in drug development has been validated.

Tech Emergence data shows that AI can save up to $26 billion in costs for the pharmaceutical industry each year. Boston Consulting Research indicates that the success rate of drug molecules generated by AI in Phase I clinical trials is 80%-90%, higher than the historical average of 50%; the success rate in Phase II clinical trials is 40%, at the upper limit of the historical range.

According to MedMarket Insights, the global AI pharmaceutical industry market size was $1.293 billion in 2023, and is expected to increase to $8.502 billion by 2031.

Currently, the company is accelerating its global market layout, developing a new business line in new materials research and development, and recently signed a 5-year, 1 billion RMB research and development cooperation agreement with the leading new energy company, Xinjiang Tianhe. At the same time, it continues to expand its overseas, especially in the United States, drug development business, replicating commercial contracts with existing major customers such as Pfizer, Johnson & Johnson, and Eli Lilly and Co. With its unique AI underlying platform and technology, Crystal Technology's products and services have been highly recognized by global customers, making it a representative enterprise in the global AI pharmaceutical and scientific intelligence field.

The Nobel Prize, as a compass for technological development, this year's favoritism towards AI to a certain extent represents the future trend of the industry. With AI technology demonstrating stronger potential and value in the global biomedical field, the intrinsic value of Crystal Power Technology is also expected to be further unleashed.