Birmingham Biotech companies receive $44 million grant for AI-driven drug development

A group of biotechnology research companies based in Birmingham will receive $44 million in federal funding to research AI technology, federal officials announced this morning.

The Birmingham Biotechnology Hub, which is led by Southern Research, will receive funding to use artificial intelligence to shorten drug development to provide affordable drugs, vaccines, and diagnostics.

“We have a great opportunity – with this grant and support from other public and private partners – to train Alabamians in the biotech jobs of the future, advance technology and make life-changing and life-saving discoveries,” said Sanjay Singh, Birmingham Bio Innovation Corporation’s interim regional innovation officer. “The work of the Birmingham Biotechnology Hub promises to benefit our local and state economies while improving health across Alabama and far beyond.”

The hub was designated as one of the 31 Tech Hubs designated in October 2023 by the Biden administration.

“To out-innovate and out-build the rest of the world, we need to ensure we’re investing in America’s talent and workforce to succeed in a 21st century economy – that’s how America maintains its competitive edge,” U.S. Secretary of Commerce Gina Raimondo said in a statement this morning.

The new round of awards is funded by new appropriations from the Fiscal Year 2025 National Defense Authorization Act.

“The Tech Hubs Program and this latest allocation of funds are the result of bipartisan cooperation in Congress,” Raimondo said. “I hope that good-faith work will endure so we can continue to invest in these centers of excellence across the nation, which in return, are providing good-paying jobs in industries of the future and helping to strengthen U.S. economic and national security.”

Officials said the new awardees, all designated Tech Hubs that had not previously received Tech Hubs implementation money, made a strong case that they could advance critical technology that is important to American economic and national security.

The National Defense Authorization Act also includes a provision that could provide the Tech Hubs Program additional funding of up to $280 million in coming years.

U.S. Rep. Terri Sewell, D-Birmingham, underscored the significance of the grant this morning.

“This award is a big victory for the city of Birmingham and the entire state of Alabama,” she said. “Not only will it ensure that Birmingham remains a leader in the biotechnology sector, but it will also help us make strides toward greater representation for African Americans and other minority communities in clinical trials. Hats off to Southern Research, UAB, and the city of Birmingham for the many years of hard work and collaboration that made this announcement possible.”