AI @ Merck & Co.
Summary
- Merck has steadily integrated advanced AI technologies, including generative AI and machine learning, into drug discovery and development from late 2023 through mid-2025, collaborating with key partners like Vector Institute and Variational AI to enhance small molecule design and clinical study efficiency.
- By Q2 2025, Merck deployed proprietary large foundation models (e.g., TEDDY with 400M parameters) and generative AI platforms internally, significantly accelerating drug target identification, clinical document authoring, and improving disease inference precision by 10%, demonstrating robust operationalization of AI across R&D and manufacturing.
- Executives such as Dr. Iya Khalil emphasized Merck’s AI ethos of combining human expertise with AI-driven insights, leading to reduced timelines from years to weeks in target identification and generating positive clinical data (e.g., KRAS G12C inhibitor MK-1084), highlighting visible financial and strategic value from AI adoption.
VIBE METER
5 AI Use Cases at Merck & Co.
Clinical Authoring2025
Target ID2025
Manufacturing Optimization2025
Drug Design2025
Disease Insight2024
Timeline
2025 Q3
Analysis highlighted Merck’s integrated AI strategy encompassing full-spectrum drug development, leveraging a multi-layered data moat to establish biopharmaceutical leadership through advanced AI-driven innovation.
2025 Q2
Merck launched multiple internal generative AI platforms, including their foundation model TEDDY (400M parameters) that improved disease inference precision by 10%. AI accelerated target identification from years to weeks, increased ROI, and enabled clinical study document authoring in collaboration with McKinsey; AI use cases like MK-1084 KRAS inhibitor showcased positive clinical outcomes.
2025 Q1
Merck expanded AI use in lead compound optimization, target identification, and accelerating drug manufacturing, maintaining a 'human in the loop' approach. Researchers incorporated large language models to augment drug discovery and development, highlighting cautious but progressive AI adoption.
2024 Q4
Merck emphasized a company-wide 360-degree AI integration improving efficiency and driving innovation, including using AI to identify intricate disease biology patterns in tumors beyond human detection, indicating deep embedding of AI in research workflows.
2024 Q3: no updates
2024 Q2
Merck entered strategic collaborations including with Boston Consulting Group for generative AI, and partnered with AI-focused biotech Biolojic Design to apply AI-driven drug discovery engines for developing novel oncology and immunology therapeutics valued at $376 million.
2024 Q1
Merck Canada partnered with the Vector Institute to advance AI capabilities in healthcare and collaborated with Variational AI to explore generative AI platforms for designing novel small molecules, becoming an early adopter of generative AI drug discovery tools.
2023 Q4
Merck launched its first AI solution integrating generative AI, machine learning, and computer-aided drug design to increase the success rate and speed of drug discovery and synthesis, marking initial AI deployment in R&D.