GSK, Exscientia, and Eisai are three biotech companies utilizing artificial intelligence (AI) to develop groundbreaking drugs and generate substantial profits for investors. With the pharmaceutical sector contributing a staggering $1.2 trillion in global revenue and the U.S. leading as the most lucrative market for drug makers, successful American pharmaceutical firms have the potential for enormous profits. Biotech companies that develop blockbuster drugs witness exponential growth in their stock value, and many are now leveraging AI to enhance their drug discovery processes, saving time and increasing the chances of success.
One such company, GSK, is a prominent UK-based drug maker known for its rapidly growing treatments and vaccines. Last quarter, GSK experienced an 18% increase in revenue from vaccines, driven by Washington’s purchases of its rotavirus shot, Rotarix. The demand for the company’s cervical cancer vaccine, Cervarix, also rose, and sales of the shingles vaccine, Shingrix, soared 20% year-over-year. GSK’s HIV drugs and Specialty Medicines sales without Covid-19 treatments also showed a positive growth trend.
GSK’s future growth prospects are supported by two significant drivers. The first is its RSV vaccine, Arexvy, which has the potential to be transformational for the company. GSK holds a duopoly in the market alongside Pfizer, with both companies set to launch their shots simultaneously. Additionally, GSK’s cancer treatment, Jemperli, reported strong growth last quarter, and there are high expectations for its approval as an endometrial cancer treatment.
Another prominent player in the biotech industry utilizing AI is Exscientia. This company employs generative AI to identify molecules with the potential to become successful drugs. Encouragingly, six of the molecules identified by Exscientia’s AI system have entered clinical trials. Major drugmakers, including Bristol-Myers Squibb and Japan’s Sumitomo Dainippon Pharma, are conducting trials on Exscientia’s drug candidates, signaling their optimism in the technology and molecules identified.
One of Exscientia’s drugs, EXS21546, has shown promising results in preclinical studies as a treatment for specific lung and renal cancers. The current market capitalization of Exscientia appears to significantly underestimate its potential in the medium and long term.
Eisai, a Japanese drug maker, is partnered with U.S. drug maker Biogen on a potential blockbuster Alzheimer’s treatment. The current market capitalization of Eisai at $18 billion is believed to severely underestimate the drug’s profitability. Alzheimer’s disease is a devastating condition with no effective treatment, and it poses a significant burden on patients, their families, and healthcare systems. Preliminary clinical trials have shown that Eisai’s drug can slow cognitive and functional decline in Alzheimer’s patients by up to 27%. Recent approval from the Food and Drug Administration and potential coverage from Medicare further highlight the drug’s potential impact.
Overall, AI-driven drug development holds immense promise for biotech companies. GSK, Exscientia, and Eisai are capitalizing on this technology to enhance their chances of success and drive significant profits. However, investors should exercise caution and thoroughly evaluate the risks associated with investing in the biotech sector.
