Revolutionizing Drug Discovery: AI Cuts Time and Costs for Biotech Stocks
Artificial intelligence (AI) is transforming the drug discovery process, making it faster and more cost-effective. Traditionally, the majority of biotech stock drug candidates fail, with a staggering 86% not meeting their endpoints between 2000 and 2015. McKinsey, a respected consulting firm, reported that it takes more than ten years to discover and develop a drug. However, AI has the potential to drastically reduce this timeframe to just one year. For investors interested in the biotech industry, here are three top stocks to consider.
Schrodinger, listed on the NASDAQ as SDGR, is at the forefront of using AI, physics, and software to expedite the drug discovery process. In addition to saving time, Schrodinger’s system significantly improves the selection of molecules that have the potential to become successful treatments. Several companies are already employing Schrodinger’s AI software to identify the most effective combinations of molecules for successful drug creation.
Excitingly, the company is currently conducting a Phase I trial for one of its own MALT 1 inhibitors, SGR-1505. If successful, this drug could offer treatment options for several non-Hodgkin’s B-cell lymphomas, such as activated B cell-like diffuse large B cell lymphoma (ABC-DLBCL), mantle cell lymphoma, and chronic lymphocytic leukemia.
Highlighting the company’s commitment to AI, Bristol Myers-Squibb (BMY) has formed a comprehensive partnership with Schrodinger. This collaboration aims to leverage Schrodinger’s physics and AI-based technology for accelerated drug discovery, particularly in the field of neurological diseases. The two companies have already been working together on drugs for oncology and immunology illnesses, making BMY an attractive long-term investment option.
Another player in the AI-driven drug discovery space is Exscientia, trading under the ticker EXAI. Like Schrodinger, Exscientia utilizes AI to enhance the drug discovery process, making it more efficient, cost-effective, and faster. The company has demonstrated the efficacy of its technology by developing a drug that entered clinical trials in partnership with Bristol-Myers. Additionally, Exscientia has initiated clinical trials in collaboration with a prominent Japanese drug maker, Sumitomo. The recent enrollment of initial patients in the Phase 1/2 trial of their potential cancer treatment, conducted alongside Chinese partner GT Apeiron, further solidifies the company’s credibility.
It is worth noting that Bristol Myers-Squibb’s cancer treatment, Opdivo, continues to demonstrate effectiveness across various types of cancer. Recently, the European Union approved Opdivo as a treatment for melanoma. Moreover, the drug successfully met its endpoints in a Phase 3 trial, positioning it as a potential first-line option for patients with bladder cancer.
AI-powered drug discovery is revolutionizing the biotech industry. Companies like Schrodinger and Exscientia are leading the way, utilizing sophisticated algorithms and AI technology to accelerate the discovery of life-saving treatments. Collaborations with pharmaceutical giants like Bristol Myers-Squibb further validate the potential of AI in this field. Investors keen on capitalizing on this significant shift in drug development should carefully consider these top three biotech stocks.
