AI drug-discovery valuations are outrunning clinical proof

Health tech has poured billions into AI companies promising faster, cheaper drug discovery, and big pharma has signed on with partnerships that assume those promises will pan out. The catch is that none of these companies has yet shown it can turn AI predictions into approved drugs. Real clinical data starts arriving over the next two years, and when it does, many of today's valuations look built on theory rather than results. That mismatch points toward a wave of consolidation, where weaker players get absorbed or shut down once the market can finally tell who actually works. For anyone watching where AI hype meets hard biology, this is the sector to watch first.