In this week’s edition of InnovationRx, we explore the world of AI medical scams, the use of machine learning to derive drugs from nature, Summit Therapeutics’ recent setback, and more. To receive this newsletter in your inbox, subscribe here.
Beware of online medical scams. Fake AI doctors—some even using the faces and voices of real doctors—are promoting questionable healthcare products on the internet.
An New York Times investigation revealed how scammers are utilizing AI tools to create fake medical professionals to sell products like “liquid pearls” for weight loss and potentially harmful supplements. Another earlier investigation by CBS News discovered a network of scammers impersonating real doctors and healthcare organizations to sell fake weight loss drugs and other treatments. Despite warnings from regulatory agencies and advocacy groups, these scams persist, with AI making it harder to combat due to its ability to create convincing fake content using minimal information.
Enveda Raises $150 Million To Utilize AI For Drug Development from Nature
Enveda CEO Viswa Colluru
Enveda
The natural world has been a source of many medicinal discoveries, such as aspirin from willow bark and penicillin from mold. However, the process of finding new drugs from nature can be lengthy and costly.
Enveda, based in Boulder, Colorado, is using AI to accelerate this process. Their software analyzes data from thousands of plants to identify potential chemicals for new treatments, which are then further developed and tested by the company. With one drug for atopic dermatitis currently in early clinical trials, Enveda recently secured $150 million in funding, bringing their total funding to $517 million and achieving a unicorn status valuation of over $1 billion. This funding round was led by Premji Invest, the family office of Azim Premji, the founder of Wipro.
With the new investment, Enveda plans to advance several more drugs into clinical trials, targeting conditions like asthma, inflammatory bowel disease, and obesity. The company also announced the appointment of Mikael Dolsten, Pfizer’s former chief scientific officer, to its board.
BIOTECH AND PHARMA
Summit Therapeutics announced that its lung cancer drug, ivonescimab, is less effective in North American and European patients compared to those in China. The biotech reported a 33% reduced risk of tumor progression in patients treated with ivonescimab and chemotherapy versus chemotherapy and a placebo, a result that did not reach statistical significance. This is in contrast to a 45% reduction seen in Chinese participants, posing a challenge for Summit, which previously outperformed Merck’s Keytruda in an earlier study. Following this news, Summit’s shares dropped by 25% on Monday. Forbes previously featured Summit’s co-CEO, Maky Zanganeh.
Additionally: Novartis has agreed to acquire Tourmaline Bio for $1.4 billion, representing a premium of nearly 60% over the biotech’s closing price on Monday. This acquisition aims to bring a new heart drug into Novartis’s cardiovascular pipeline as the patent for their blockbuster heart failure drug, Entresto, is expected to expire soon.
DIGITAL HEALTH AND AI
Eli Lilly, a pharmaceutical giant, has introduced Tunelab, an AI platform for drug discovery trained on the company’s data, which will be available to selected biotech partners in exchange for training data. Tunelab will be hosted by a third-party to ensure that Lilly does not have direct access to proprietary information from its partners. Circle Pharma has announced its collaboration with Tunelab to discover potential cancer treatments targeting currently undruggable targets. Insitro will work with Lilly to develop new AI models for the discovery of small molecule therapies.
MEDTECH
The FDA has approved a clinical trial for genetically modified pig kidneys in human transplant cases for late-stage kidney disease. Conducted by xenotransplant startup eGenesis, this study will evaluate the safety, tolerability, and efficacy of the kidney 24 weeks after transplantation into older patients on dialysis, facing end-stage kidney disease, or on the transplant waiting list. eGenesis has already transplanted their kidneys into three patients, with one patient remaining healthy seven months post-operation. Forbes previously featured eGenesis and its technology.
PUBLIC HEALTH AND HOSPITALS
According to a survey by benefits consultant Mercer, employees can anticipate increased health care costs next year, including higher premiums, larger deductibles, and elevated copays. The average total health benefit cost per employee for employers is projected to rise by 6.5% in 2026, marking the largest increase in 15 years. Many employers are planning to mitigate these costs by raising deductibles or cutting benefits. Without these adjustments, the per-employee cost would rise by nearly 9%, as per the survey findings. This anticipated cost hike comes at a time when consumers are already feeling the financial strain of rising health care expenses.
Additionally: President Trump has signed an executive order tightening restrictions on drug advertising. The FDA plans to
