Indegene Teams Up with Microsoft to Boost GenAI Adoption, Stock Surge by 3%

Indegene has entered into an agreement with Microsoft to assist global life sciences companies in expanding their generative AI services, according to an exchange filing from the Bengaluru-based firm on July 11.

Following the announcement of this collaboration, Indegene share price increased by up to 4.81%, reaching ₹597.25 each on the BSE.

"In our pursuit to enhance innovation, we will continuously seek greater collaboration opportunities with leading technology providers. Our goal is to help clients leverage GenAI to tackle significant operational challenges and prepare their businesses for the future," stated Tarun Mathur, Indegene's chief technology officer.

As part of this partnership, both companies aim to develop specialized resources in medical and technology tools to co-innovate generative AI services and workflows across commercial, medical, regulatory, and clinical areas, as noted in the exchange filing.

"Generative AI is revolutionizing every industry, including life sciences, by providing new pathways for healthcare technology advancements," remarked Alok Lall, Microsoft India & South Asia's chief operating officer. A study commissioned by Microsoft and conducted by IDCi revealed that 79% of healthcare organizations have adopted AI, underscoring its undeniable business value, Lall added.

"By combining Indegene's domain expertise with Microsoft Azure OpenAI Service and Microsoft Copilot, we are at the forefront of advancing generative AI in the life sciences sector. This partnership enables life sciences companies to fully exploit AI's potential, driving innovation and scalability within the industry," said Alok Lall.

The collaboration will emphasize the creation of a comprehensive content super application to simplify content creation and tagging for life sciences firms. It will also focus on developing a future-ready medical content value chain and enhancing data management and analytics for clinical trials.

GenAI offers a once-in-a-decade opportunity for life sciences companies to modernize their processes and improve operational efficiency, noted Tarun Mathur. "We are working closely with many clients to address specific business problems using GenAI, with nearly 50 real-world use cases already in advanced pilot stages," he said.

Indegene has a total market capitalization of ₹14,139.60 crore. Since its listing in May this year, the company's share price has increased by only 3%. For the fourth quarter of the fiscal year 2023-24 (Q4FY24), Indegene reported a revenue of ₹673 crore, a 6.5% increase from ₹632 crore in the same period the previous year.

The company's net profit surged by 94.6% to ₹94.9 crore in the quarter ending March 31, 2024, compared to ₹48.8 crore in the corresponding period last year. However, profits fell by 3.9% sequentially from ₹98.8 crore recorded in Q3FY24.