HAITONG INT'L: AI technology empowers innovation and transformation in the pharmaceutical field, optimistic about the current prospects of AI + healthcare development.

Haitong International released a research report stating that NVIDIA Corporation (NVDA.US) and Eli Lilly (LLY.US) have partnered to establish an AI+ pharmaceutical laboratory. The collaboration between the two companies signifies that AI will elevate from being a tool to becoming a core productivity driver in drug development, and will drive the transformation of the pharmaceutical model from "experience-driven" to "data and algorithm-driven". The high performance of Tempus (TEMP.US) further validates that AI is transitioning from a concept to a core productivity driver in pharmaceuticals and healthcare. From a technological perspective, AI technology has made significant breakthroughs in recent years, significantly improving process efficiency in drug discovery, preclinical research, and clinical trials. The current acceleration phase of industrialization for AI+ healthcare, driven by the synergy between artificial intelligence and medicine, indicates promising prospects for the development of AI+ healthcare. Key points by Haitong International are as follows: AI+ pharmaceuticals: AI empowers the entire pharmaceutical industry chain NVIDIA Corporation and Eli Lilly have announced the establishment of the first AI+ pharmaceutical joint innovation laboratory, focusing on applying artificial intelligence to critical challenges in drug development. The laboratory will leverage Eli Lilly's global expertise in drug discovery, development, and manufacturing, along with NVIDIA Corporation's technical advantages in artificial intelligence, accelerated computing, and AI infrastructure. The two companies plan to invest up to $1 billion over the next five years in talent, infrastructure, and computing resources, marking the formal entry of AI into the core research and development system of global leading pharmaceutical companies. Haitong International believes that the collaboration between NVIDIA Corporation and Eli Lilly signifies the elevation of AI from a tool to a core productivity driver in drug development, driving the transformation of the pharmaceutical model from "experience-driven" to "data and algorithm-driven". AI+ healthcare: Tempus' performance validates its commercialization capability AI healthcare company Tempus has announced its preliminary performance for 2025: revenue of approximately $1.27 billion, an 83% year-on-year growth, with a pre-market surge reaching 12% and a 4.51% post-market increase. The diagnostic business revenue is approximately $955 million, with a year-on-year growth of about 111%, mainly driven by a 26% increase in tumor testing volume and a 29% increase in genetic testing volume. The data and application business revenue is approximately $316 million, with a year-on-year growth of about 31%, including a 38% growth in the Insights (data licensing) business. Haitong International believes that Tempus' high growth rate validates the replicability of AI in clinical testing and commercializing medical data. Industry trends: Resonance stage of technological breakthroughs, active funding, and accelerated application landing Haitong International believes that we are currently in a stage of active technological innovation, evident policy support, and broad market prospects. From a technological perspective, AI technology has made significant breakthroughs in recent years, significantly improving process efficiency in drug discovery, preclinical research, and clinical trials. In terms of funding, the AI pharmaceutical investment and financing market is active. In January 2026, OpenAI launched ChatGPT Health, with the monthly active users of "Ant Afu" exceeding 30 million and the daily question volume exceeding 10 million times. Related targets: (1) AI drug discovery: Crystalead Technology (02228), INSILICO (03696), VIVA BIOTECH (01873), Hitgen Inc. (688222.SH), PharmaResources (301230.SZ), PharmaBlock Sciences (300725.SZ). (2) AI applications/healthcare: Meinian Onehealth Healthcare Holdings (002044.SZ), Guangzhou Kingmed Diagnostics Group (603882.SH), Jiangsu Yuyue Medical Equipment & Supply (002223.SZ), MGI Tech Co., Ltd. (688114.SH), Dian Diagnostics Group (300244.SZ), etc. Risk warning: Risk of AI+ pharmaceutical technology development falling short of expectations, risk of R&D falling short of expectations, political risk of GEO Group Inc, risk of unexpected policy changes.