3 Top Ways to Trade AI’s Healthcare Revolution - 7/22

Artificial intelligence (AI) is having a mind-blowing impact on society.

We’re already seeing its impact with education, finance, military, cybersecurity… you name it.

But this is just the start.

Big tech is investing billions in AI. In fact, according to CNBC, AI is now the biggest expense for about half of all tech companies. 

But again, this is just the start.  According to Next Move Strategy Consulting, the AI market – currently valued at about $100 billion – could grow twenty-fold by 2030 to more than $2 trillion. All while the technology massively disrupts everything about everything.

That includes healthcare and medical technology. 

For example, according to analysts over at BlackRock, “The greatest surge of new retirees in the nation’s history is fast approaching, and the AI healthcare market, worth $9 billion in 2022, is forecasted to skyrocket to $188 billion in 2031.”

Better, “With the implementation of AI in healthcare, it was forecast physicians would be able to spend almost 20 percent more of their time on patients because the time burden of administrative tasks would be reduced,” as noted by Statista.

Look at drug discovery, for example.

At the moment, it can take 10 to 15 years, and upwards of $2 billion to develop a new drug.

Plus, designing new drugs isn’t easy.  When creating a new drug, you need to identify a molecule that balances a large number of anti-correlated properties, including potency, selectivity, solubility, bioavailability, clearance/ half-life, permeability, drug interactions, and synthesizability. 

Even then, drug development has a high failure rate of 90% -- which is ridiculously high. However, with artificial intelligence (AI) the rate of failure could drop, and the design of new drugs could become far easier.  

Company: Schrodinger (SYM: SDGR)

That being said, investors should keep an eye on stocks such as Schrodinger (SYM: SDGR), which is transforming the way therapeutics and materials are discovered.

At the moment, its AI-powered software technology uses physics-based modeling and machine learning (ML) algorithms to help companies identify which molecules can help treat specific ailments. Better, its programs can help predict behavior of molecules and possible outcomes.

Companies: Exscientia (SYM: EXAI), Recursion Pharmaceuticals (SYM: RXRX)

Or, look at Exscientia (SYM: EXAI), which bills itself as an AI-driven precision medicine company that’s engineering future drugs to help revolutionize drug discovery.  

Its patient-first Ai-driven platform allows for a highly efficient and accelerated drug discovery process, which significantly reduces time and costs associated with typical drug discovery methods. All through the use of patient tissue data to “define optimal profiles for research, improve experimental assessment during design and improve outcomes in a medical setting.”

There’s also Recursion Pharmaceuticals (SYM: RXRX), a clinical stage TechBio company that’s “decoding” biology to industrialize drug discovery with the help of its Recursion OS.