By Ron Lanton III, Esq.
Senior Partner, Lanton, Lanton & Sosa Law PLLC
Artificial intelligence is changing how pharmaceutical companies discover and develop medicines. As the technology becomes more involved in pharmaceutical research, the commercial agreements governing these relationships deserve closer attention. Questions about intellectual property ownership, compensation, and development responsibilities can have significant financial consequences, particularly when a promising compound advances toward clinical trials.
On October 27, 2026, Anthropic described research collaborations involving BigHat Biosciences, Bristol Myers Squibb, Enveda, Generate, and other organizations. These projects demonstrate how AI is being used for work ranging from antibody engineering and clinical trial planning to manufacturing documentation and regulatory submissions. At Generate, researchers used AI to help design components for CAR T-cell therapies, while Enveda used the technology to reduce the time required to review manufacturing records. Although these applications are still developing, they show how technology companies are becoming more involved in pharmaceutical research and development.
One of the more important considerations in these collaborations is ownership of the resulting intellectual property. An AI developer may contribute its platform, algorithms, and technical expertise, while a pharmaceutical company provides proprietary datasets, molecular libraries, research personnel, and therapeutic targets. Both organizations may contribute to the discovery of a promising molecule, making it important to establish ownership and licensing rights before the research begins. Under U.S. patent law, inventors must be natural persons, although the use of AI does not automatically prevent an invention from receiving patent protection. Contractual ownership of the resulting intellectual property remains a separate issue that the parties must address.
Data ownership is equally important, especially when pharmaceutical companies provide confidential research information to technology developers. Agreements should establish whether that information can be used to improve an AI platform, whether the developer can apply lessons from the research to other customers, and what happens to the data when the collaboration ends. A pharmaceutical company may have legitimate concerns about its proprietary information contributing to technology subsequently used by competitors. These questions are best resolved before the research produces a commercially valuable candidate.
Compensation presents another challenge. Many AI drug discovery collaborations follow established pharmaceutical licensing models, combining upfront payments with development milestones, regulatory milestones, commercial milestones, and royalties. The difficulty is determining how value should be divided between a technology developer that helps identify a compound and a pharmaceutical company that subsequently finances clinical trials, manufacturing, regulatory approval, and commercialization. The agreement should clearly define the events that trigger milestone payments, including what constitutes successful lead optimization, candidate nomination, or advancement into clinical development. Unclear definitions can create significant disagreements when a research program succeeds.
The relationship may also change substantially when a compound moves from discovery into clinical development. An AI developer may have the technology and scientific capabilities to identify promising molecules without having the financial resources or infrastructure to conduct clinical trials. The pharmaceutical partner may eventually assume responsibility for development, regulatory submissions, and commercialization. Agreements should establish who controls those activities, how development costs will be allocated, and what happens if the pharmaceutical company decides not to continue pursuing the compound. Termination provisions can be particularly important if the original developer wants to recover the rights and seek another partner.
International partnerships introduce additional considerations, especially when European AI developers enter agreements with U.S. pharmaceutical companies. Differences in patent rules, data protection requirements, technology transfer restrictions, and investment regulations can affect how these collaborations are structured. The choice between a licensing agreement, research collaboration, joint venture, or equity investment can also influence control over intellectual property, future financing, and commercial opportunities. For companies seeking to expand into the U.S. pharmaceutical market, those decisions may have consequences well beyond the initial research project.
AI may help pharmaceutical companies identify promising compounds and improve parts of the development process, although bringing a medicine to market remains expensive, regulated, and uncertain. A collaboration that begins with access to an AI platform could eventually produce an asset worth substantially more than either party anticipated when the relationship began. Companies entering these agreements should understand who will own the discoveries, how financial returns will be divided, and what happens when development priorities change. The technology may advance quickly, but the commercial agreements must be capable of supporting the relationship for years to come.
How Lanton, Lanton & Sosa Law Can Help
Lanton, Lanton & Sosa Law works with pharmaceutical, biotechnology, and healthcare technology companies on the legal and regulatory matters that accompany research partnerships, commercial agreements, and business expansion. For companies developing or using AI in drug discovery, our work can include reviewing collaboration and licensing arrangements, addressing regulatory responsibilities, evaluating commercial risks, and advising on the legal considerations involved in bringing new technologies and therapies to market.
We also work with companies entering or expanding within the U.S. healthcare market, including international businesses seeking to establish pharmaceutical partnerships. Through Lanton Strategies International, we can provide additional support on cross-border commercial strategy and market development.
Ron Lanton III is Senior Partner at Lanton, Lanton & Sosa Law PLLC and President of Lanton Strategies International B.V., where his work includes U.S. healthcare regulation, pharmaceutical commercial strategy, and international life sciences advisory.