Much is written about all the benefits that AI will bring, including greatly boosting the efficiency of new drug discovery in the pharmaceutical sector. But far less is written about industries likely to become victims of AI’s success, making their current business models obsolete.
In the pharma sector, one industry feeling such pressure is the one that supplies lab animals and related services for new drug testing. Joinn Laboratories (China) Co. Ltd. (6127.HK; 603127.SH) was feeling that pain late last week, after an announcement from the U.S. about a gradual phasing out of animal testing requirements sent its shares diving.
Joinn supplies lab mice, rabbits and monkeys and related drug testing services to clients mostly in China and the U.S., and is part of a larger group of drug outsourcing service providers known as clinical research organizations (CROs). Its Hong Kong-listed shares fell 13.4% on Friday, while its Shanghai-listed stock fell 10%, the daily allowable limit for China’s A-share market. The stock rebounded somewhat on Monday, with the Hong Kong-listed shares up 4.5% in early trade.