Can AI Drug Discovery Become the “Next Semiconductor Theme”? The Vast Market Highlighted by FRONTEO and Chiome Bioscience as AI Advances from “Technology That Generates Text” to “Technology That Generates New Drug Candidates” | Japanese Individual Stock Due Diligence Center

FRONTEO and Chiome Bioscience will formally launch a joint research project aimed at discovering bispecific antibodies using AI. FRONTEO will use its DDAIF AI drug discovery support service to explore hypotheses concerning disease-related target molecules, while Chiome Bioscience will use its DoppeLib antibody library platform to create and evaluate candidate antibodies.

The goal is to generate antibody drug candidates during FY2027, which does not mean that the products will be approved or launched during that period. Whether an out-licensing agreement will be executed after the candidates are generated, and the specific consideration involved, have not yet been determined and are expected to depend on future progress.

In the current state of AI drug discovery, disease target discovery and molecular design are increasingly being viewed as separate areas. Bispecific antibodies target two molecules simultaneously, creating a wider range of candidate combinations, while requiring both design and experimental validation. Although structural prediction technologies such as AlphaFold 3 are advancing, experimental data remains essential for determining efficacy and safety.

Investors should focus less on the number of candidates generated by AI than on practical considerations, including whether the process from hypothesis generation through experimental evaluation and redesign can be streamlined, and how the terms and timing of any out-licensing agreement will be disclosed.