Artificial intelligence in life sciences

Artificial intelligence is transforming drug discovery and development: accelerating discovery through target identification and generative chemistry, reshaping clinical trial design and patient recruitment, and powering a new generation of AI-enabled medical devices, diagnostics and software. We advise innovators, investors, start-ups, and established life sciences businesses on the legal and commercial issues raised, combining genuine technical fluency with practical, commercial judgement.

Comprehensive guidance on the transformative impact of AI in life sciences

AI is becoming embedded in company lifecycles, from early-stage drug discovery and clinical development, through to AI-enabled diagnostics and digital health products. In drug discovery, AI is speeding up target identification, generative chemistry, and predictive modelling. This may raise questions around IP assets, particularly if there is any collaborative relationship with an AI provider. Our experts regularly advise on the in-licensing of AI models, data, and code, and on the implications for downstream ownership of IP assets according to collaboration and software development agreements.

AI is also changing how clinical trials are designed and run, from patient identification and recruitment, to AI-assisted monitoring and analysis. As trial sponsors and technology providers work more closely together, we help structure the data sharing, licensing and collaboration arrangements that sit behind AI-enabled trial methodologies, alongside the data protection and governance frameworks needed where health data is used to train or validate AI systems.

The individuals at Penningtons Manches Cooper are not just legal professionals; they are trusted advisors committed to delivering exceptional results for their clients. We value their responsiveness, attention to detail, and ability to navigate complex legal issues.

Legal 500

In medical devices and diagnostics, our specialists advise on regulatory, patent, data and commercial issues, including the use of public and customer-contributed data sets for machine learning and predictive analysis, and the privacy and governance documentation required to support ongoing research and product development.

We have a particularly strong track record supporting spin-outs and funding rounds, working closely with universities, research institutions, founders and investors from the earliest stages of formation, structuring the licensing of AI models, data, code and IP from multiple academic and commercial owners, and accompanying spin-outs through successive funding rounds as they scale. As these businesses grow, we can also draw on the firm’s wider life sciences offering, giving clients joined-up support on related corporate, employment, immigration, tax, real estate, disputes and regulatory issues.

How we help our clients

IP ownership and licensing for AI models, algorithms and data spanning multiple collaborators

Data and collaboration agreements for AI-driven drug discovery

Data licensing and rights clearance for AI training data sets

Regulatory pathways for AI as a medical device, including MHRA and EU AI Act compliance

Spin-out structuring, IP licensing and trade mark protection for AI-driven life sciences ventures

Fundraising and venture capital rounds for AI and machine learning life sciences businesses

Data protection and AI governance for health data

Commercial and software development agreements relating to AI-driven health data and licensing

EU Data Act, AI governance training and policy development for organisations adopting AI

Recent work highlights

AI healthcare university spin-out company

Acting for a university technology transfer office on the spin-out of an AI healthcare company, including advising on the licence of AI models, data and code from the university and five other IP owners.

Spin-out and funding for healthtech company

Advising on the spin-out and funding round of a healthtech company that combines single-molecule fluorescent microscopy with advanced machine learning to identify pathogens.

University of Oxford AI and healthcare spin-out

Assisting with the spin-out of an AI and healthcare software company originating out of research work performed at the University of Oxford, including supporting the establishment of the corporate structure and commercialisation of technology.

Machine learning start-up fundraising

Acting on the fundraising for an Oxford-based machine learning start-up building a platform to decode immune repertoires in health and disease, supporting its growth ambitions and the further development of its pioneering technology platform.

AI use of publicly available data sets

Providing guidance on the use of publicly available data sets within an AI tool, including advising on compliance considerations, data usage rights and associated regulatory risks.

AI medical device intellectual property rights

Advising on IP rights in AI projects, including AI systems within medical devices and data contributed by customers for machine learning and predictive analysis.

Digital therapeutics company key agreements

Providing advice on key commercial agreements for a digital therapeutics company, including software development agreements, with a particular focus on securing ownership of all generated intellectual property.

US/UK medtech company data protection compliance

Assisting a UK- and US-based medtech company with establishing a data protection compliance programme, including policy development, audit support, contractual terms (including app terms and conditions), and key risk assessments (DPIAs, LIAs, TRAs).

Digital therapeutics company key agreements

Providing advice on key commercial agreements for a digital therapeutics company, including software development agreements, with a particular focus on securing ownership of all generated intellectual property.

US/UK medtech company data protection compliance

Assisting a UK- and US-based medtech company with establishing a data protection compliance programme, including policy development, audit support, contractual terms (including app terms and conditions), and key risk assessments (DPIAs, LIAs, TRAs).

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