# Do AI-Native Biotechs Need Departments? Benchmarking Company World Models for AI-Driven Drug Development

arXiv: https://arxiv.org/abs/2607.18696 · HTML: https://mlsanity.com/paper/2607.18696/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Builds on 14 of its 27 references that are in the map.
- First posted on arXiv 21 Jul 2026.

## Builds on (most cited first, 14 of 14)

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- [G-Eval: NLG Evaluation using GPT-4 with Better Human Alignment](https://mlsanity.com/paper/2303.16634/) (2023)
- [Large Language Models Encode Clinical Knowledge](https://mlsanity.com/paper/2212.13138/) (2022)
- [World Models](https://mlsanity.com/paper/1803.10122/) (2018)
- [What Disease does this Patient Have? A Large-scale Open Domain Question Answering Dataset from Medical Exams](https://mlsanity.com/paper/2009.13081/) (2020)
- [PubMedQA: A Dataset for Biomedical Research Question Answering](https://mlsanity.com/paper/1909.06146/) (2019)
- [HuggingGPT: Solving AI Tasks with ChatGPT and its Friends in Hugging Face](https://mlsanity.com/paper/2303.17580/) (2023)
- [The AI Scientist: Towards Fully Automated Open-Ended Scientific Discovery](https://mlsanity.com/paper/2408.06292/) (2024)
- [V-JEPA 2: Self-Supervised Video Models Enable Understanding, Prediction and Planning](https://mlsanity.com/paper/2506.09985/) (2025)
- [Agentic World Modeling: Foundations, Capabilities, Laws, and Beyond](https://mlsanity.com/paper/2604.22748/) (2026)

## Abstract (arXiv)

AI-native biotechnology companies are often designed by copying human biotech org charts into agent roles. We argue for a different abstraction: a Company World Model, defined as a persistent asset-to-value state representation with transition models, explicit value functions, planning, and updating across scientific, regulatory, BD, commercial, financial, and execution constraints. We introduce a dry-lab benchmark for testing whether AI-agent organizations should mimic departments or operate around such a world model. The benchmark contains 45 retrospective public-information decision cases with strict time cutoffs, hidden outcomes, common schemas, automatic scoring, and blinded pairwise judging. We compare human-org-mimic, stronger human-org-mimic-plus, AI-native asset-centric, and AI-native value-conversion architectures. The value-conversion architecture is a prompt-level approximation of a Company World Model: a Live Asset Value Record updated by Deal, Approval, Revenue, and Investment Arbiter loops. Under a success function defined by external BD, regulatory approval and launch, and revenue discipline, it achieved the highest automatic value-conversion score and was strongly preferred over the original baselines by value-specific blinded judges. Stress tests narrowed the claim: a stronger human baseline remained competitive, and a neutral judge did not show robust value-conversion dominance. Codex-only mechanistic ablations suggest that Revenue Room, Deal Room, and Approval Room carry useful work under the target objective. The central finding is objective-sensitive: departments may remain useful governance views, but the core AI-native operating primitive should be a shared, predictive asset-to-value state rather than a static human org chart. The study is dry-lab only and does not establish real-world drug success, clinical benefit, or revenue prediction accuracy.