Tempus AI partners with AstraZeneca and Pathos on oncology AI

CHICAGO - Tempus AI, Inc. (NASDAQ: TEM), a leader in applying artificial intelligence (AI) to healthcare, has announced strategic collaborations with pharmaceutical giant AstraZeneca (LSE/STO/Nasdaq: AZN) and Pathos AI, Inc. The partnerships, announced today, focus on creating a multimodal foundation model in oncology to enhance drug discovery and patient care. AstraZeneca, with a market capitalization of $213 billion and an impressive "GREAT" financial health score according to InvestingPro, has demonstrated strong momentum with 18% revenue growth over the last twelve months.

The collaboration leverages Tempus’ expansive de-identified oncology data to build the foundation model, which, upon completion, will be utilized by all three entities to bolster their individual initiatives aimed at improving patient outcomes. Tempus is set to receive $200 million for data licensing and model development fees. As a prominent player in the pharmaceuticals industry, AstraZeneca brings significant financial strength to this partnership, maintaining a 33-year track record of consistent dividend payments. Discover more detailed financial insights and 8 additional key ProTips with InvestingPro.

This agreement builds upon a previous partnership with AstraZeneca established in 2021, with the goal of advancing therapeutic programs in oncology on a global scale through Tempus’ AI-enabled platform and comprehensive multimodal data repository.

Tempus’ CEO, Eric Lefkofsky, emphasized the transformative potential of generative AI and multimodal models in realizing precision medicine in oncology. He highlighted Tempus’ decade-long investment in data collection as a critical foundation for developing such models.

Jorge Reis-Filho, Chief AI and Data Scientist at AstraZeneca’s Oncology R&D, expressed excitement about the collaboration’s promise to enhance their data and AI-driven R&D strategy, potentially accelerating clinical success across their oncology pipeline.

Representatives from Pathos AI echoed the sentiment, acknowledging the evolving role of AI in drug development and the anticipated benefits of the partnership in improving patient outcomes.

Tempus, known for its large library of multimodal data and AI-driven healthcare solutions, aims to provide personalized patient care while supporting the discovery, development, and delivery of optimal therapeutics. The company’s approach seeks to utilize historical patient treatment data to inform and improve future patient care.

The press release includes forward-looking statements about Tempus and its industry, cautioning that such statements involve risks and uncertainties. It also outlines potential factors that could affect Tempus’ business operations and financial performance.

This news is based on a press release statement from Tempus AI, Inc. Investors following this development should note that AstraZeneca is currently trading below its InvestingPro Fair Value, with analysts setting price targets up to $97 per share. The company is scheduled to report its next earnings on April 29, 2025. For comprehensive analysis and detailed valuation metrics, access the full Pro Research Report, available exclusively on InvestingPro.

In other recent news, AstraZeneca announced a significant breakthrough in breast cancer treatment with its drug Enhertu. In a Phase III trial, Enhertu, combined with pertuzumab, demonstrated a meaningful improvement in progression-free survival for patients with HER2-positive metastatic breast cancer. This development marks the first time in over a decade that a treatment has shown superior efficacy compared to the current standard of care. Additionally, Enhertu has received approval from the European Union for treating a specific type of metastatic breast cancer, expanding its use as a monotherapy for patients with HER2-low disease. The European Commission’s decision was based on the positive outcomes of the DESTINY-Breast06 trial, which showed Enhertu’s superior performance over chemotherapy.

Meanwhile, AstraZeneca’s drug Imfinzi has also been approved by the European Union for a specific form of lung cancer. The approval follows the AEGEAN Phase III trial results, which demonstrated a 32% reduction in the risk of disease recurrence. On the financial front, AstraZeneca received an Outperform rating from BNP Paribas Exane, with a price target set at GBP115. Analyst Peter Verdult expressed confidence in the company’s leadership and research capabilities, suggesting that AstraZeneca’s revenue goal of $80 billion by 2030 is achievable. Furthermore, AstraZeneca’s shareholders recently approved all resolutions at the company’s Annual General Meeting, including the re-appointment of its auditor and confirmation of interim dividends for 2024.

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