Pharmaceutical giant Bayer said it plans to deprioritize its investment in AI platform company Blackford Analysis as part of a general move away from the platform business. Bayer is also winding down its investment in Calantic Digital Solutions, the digital platform company it formed in 2022.
The move is a stunning turnaround for Blackford, which was founded in 2010 and was the first and perhaps most prominent of the digital AI platform companies.
- Bayer acquired Blackford in 2023, and operated it in parallel with Calantic, which also offered AI solutions in the platform format.
Platform AI companies have a simple value proposition: rather than buy AI algorithms from multiple individual developers, hospitals and imaging facilities contract with a single platform company and pick and choose the solutions they need.
- It’s a great idea, but platform providers face the same challenges as algorithm developers due to slower-than-expected AI clinical adoption.
Bayer’s move was confirmed by company representatives, who noted that personnel will be maintained to support the Blackford AI platform and fulfill existing contractual commitments.
- “Bayer has made the decision to deprioritize its digital platform business, which includes Blackford, and will discontinue offerings and services. Resources will be reinvested into growth areas that support healthcare institutions around the world, in alignment with customer needs,” the representative said.
And in a letter to customers obtained by The Imaging Wire, Blackford confirmed Bayer’s decision, stating that Blackford’s core team will remain in place led by COO James Holroyd during the transition.
- The company also said it would “discuss and facilitate opportunities to move existing Blackford contracts into direct deals with AI vendors, or alternate platform providers.”
Bayer’s withdrawal from the digital platform space includes the Calantic business, which Bayer formed three years ago to offer internally developed AI tools.
- At the time, industry experts postulated that contrast agent companies had an inside track for radiology AI thanks to their contracts to supply consumables to customers – a theory that in retrospect hasn’t borne fruit.
Speculation about Blackford’s fate burst into the public eye late last week with a detailed LinkedIn post by healthcare recruiter Jay Gurney, who explained that while Blackford has been successful – and is sitting on a “monster pipeline” of hospital deals – it’s simply not a great fit for a pharmaceutical company.
- Despite Bayer’s withdrawal, Blackford could make a good acquisition candidate for a company without a strong AI portfolio that wants to quickly boost its position.
The Takeaway
Bayer’s announcement that it’s winding down its Blackford and Calantic investments is sure to send shockwaves through the radiology AI industry, which is already struggling with slow clinical adoption and declining venture capital investment. The question is whether a white knight will ride to Blackford’s rescue.
