WARREN, N.J. - Tevogen Bio (NASDAQ:TVGN), a clinical-stage immunotherapy biotech company, has announced a partnership with Microsoft (NASDAQ:MSFT) to utilize artificial intelligence (AI) in accelerating the development of its therapeutic candidates. The collaboration, which focuses on the application of machine learning and Microsoft's AI tools, is aimed at enhancing Tevogen's ExacTcell pre-clinical pipeline and refining predictive AI technology for identifying new therapeutic opportunities.
Tevogen's Chief Information Officer, Mittul Mehta, highlighted the use of Microsoft's AI resources in building data pipelines to facilitate rapid target selection in drug development. Microsoft's expertise is expected to improve the accuracy and speed of Tevogen's research, potentially reducing the overall timelines for bringing new treatments to market.
According to Dr. Neal Flomenberg, Tevogen Bio's Chief Scientific Officer, the partnership is anticipated to initially cut drug development timelines by about 10%, with the possibility of achieving up to a 30% reduction through further automation. These advancements are not only expected to expedite the development process but also result in cost savings.
Tevogen's approach involves harnessing CD8+ cytotoxic T lymphocytes for the creation of off-the-shelf, genetically unmodified T cell therapeutics targeting infectious diseases and cancers. The company's leadership emphasizes the importance of patient accessibility to advanced therapies and believes in the sustainability of medical innovation through disruptive business models.
The press release also contains forward-looking statements regarding Tevogen's development plans and potential benefits of its product candidates, including TVGN 489, which targets COVID-19 and Long COVID. Tevogen has reported positive safety data from its proof-of-concept clinical trial and owns key intellectual property assets related to artificial intelligence.
This news is based on a press release statement and reflects the company's current expectations and projections about the potential efficiencies and advancements in drug development through its partnership with Microsoft.
In other recent news, Microsoft Corporation (NASDAQ:MSFT)'s financial performance and future projections have been the focus of several analyst firms. BMO Capital Markets lowered its price target for Microsoft to $495, yet retained an Outperform rating, citing the potential impact of supply and demand imbalances on Azure's revenue. TD Cowen also revised its price target down to $475, maintaining a Buy rating, due to concerns over near-term capacity constraints affecting Azure's growth. Despite these revisions, both firms expressed optimism about Microsoft's long-term growth potential, highlighting factors like Azure's growth and the increase in the Average Revenue Per User (ARPU) for Microsoft 365.
Goldman Sachs reiterated a Buy rating and maintained a $500 price target, forecasting Azure's growth to re-accelerate in the next half of 2025. The firm also pointed out that Microsoft's rising cash levels could help offset some of the OpenAI-related operating losses. Meanwhile, Evercore ISI maintained an Outperform rating with a $500 target, emphasizing Microsoft's long-term prospects in the Commercial sector.
These revisions and ratings followed Microsoft's recent earnings report, which showed a 16% increase in revenue to $65.6 billion for the fiscal first quarter, surpassing Wall Street projections. However, the company's second-quarter guidance fell slightly short of analyst expectations due to capacity constraints, potentially slowing Azure's growth. Despite these challenges, analyst firms remain confident in Microsoft's long-term growth potential. These are the recent developments for Microsoft Corporation.
InvestingPro Insights
Microsoft's collaboration with Tevogen Bio aligns well with its position as a prominent player in the software industry, as highlighted by InvestingPro Tips. The partnership leverages Microsoft's AI capabilities, which could contribute to its continued strong financial performance.
According to InvestingPro data, Microsoft's revenue growth stands at 15.67% for the last twelve months, with a robust operating income margin of 44.64%. These figures underscore Microsoft's financial strength and its capacity to invest in innovative partnerships like the one with Tevogen Bio.
An InvestingPro Tip notes that Microsoft has raised its dividend for 19 consecutive years, reflecting its consistent financial health. This stability could be reassuring for investors considering the long-term potential of Microsoft's AI initiatives in healthcare and biotechnology.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips for Microsoft, providing a comprehensive view of the company's financial position and market performance.
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