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Artificial intelligence (AI) has the potential to revolutionize the world by automating tedious tasks, reducing errors, and extending power in the office and at home. As a result, investors have rushed to invest in corporations that can take advantage of this future. technology. In most cases, when we think of AI, we think of chipmakers or tech corporations powering AI tools.
But one of the areas that may be one of the biggest winners in the AI race is healthcare, whose market is expected to reach $194 billion by 2030, according to Allied Market Research. AI can speed up drug development and produce better products. , and surgical outcomes. As a result, corporations that promote AI-based products and facilities may see their profits and inventory costs skyrocket.
As tempting as it sounds, it’s not a smart concept to invest in corporations just because they operate in this exciting field. Rather, it’s vital to take a look at the big picture and long-term prospects of a company. With that in mind, here’s one healthcare AI inventory you can buy out of hand right now and another one you should avoid.
Moderna (RNA -5. 36%) probably doesn’t come to mind when you think of AI. The company can be more associated with its successful coronavirus vaccine. But AI played a behind-the-scenes role in the progression of the vaccine and is a force in Moderna’s paintings on other shows.
The biotech company uses messenger RNA as the backbone of its investigational products. Through a vaccine or treatment, mRNA tells the system to make a protein to save you or treat a disease. This has worked incredibly well on the company’s coronavirus vaccine, with Moderna aiming to launch up to 15 new products in remedy spaces over the next five years.
Where does AI come in? Moderna has used it to speed up the discovery process by generating larger and faster mRNA sequences. In this way, it aided the progression of the coronavirus vaccine.
This year, Moderna reinforced its commitment to AI by signing an agreement with International Business Machines, which will allow it to use IBM’s quantum computing and generative AI platforms for drug expansion. For example, Moderna will use IBM’s MolFormer, a foundational AI model, to wait for a molecule’s homes and expand potential remedies for the disease faster and more efficiently. Moderna has also expanded its offices and cadres, with the purpose of expanding its cadre in the field of AI.
All of this may solve one of the biggest disruptions in drug development: slowness. And that can simply be a massive win, translating into significant long-term earnings growth.
But Moderna only talks about IA. La company has more than 40 systems in development and, as mentioned above, is expected to launch several new products in the coming years.
So now is the best time to make history. By investing in Moderna, you can reap the benefits of an AI revolution, and much more.
Recursion Pharmaceuticals (RXRX -4. 87%) aims to drive drug discovery through its AI-powered Recursion OS platform. The company uses device-based learning to identify the relationships between biological and chemical knowledge in its knowledge base. From there, the company conducts millions of experiments each. and every week in an effort to more quickly locate larger drug applicants.
With this platform, Recursion now has nine applicants in the pipeline in the areas of oncology and rare diseases. The maximum complex is in 2 studios.
In terms of its monetary situation, Recursion invests heavily in research and development, which translates into a growing loss. Today, the company says it has enough money to continue its operations for at least the next 12 months, and it doesn’t expect to make a profit from its products in the near future. The biotech company also said in a recent filing that it will likely want to raise more capital to fund its operations.
This is totally unexpected for an early-stage clinical-stage biotech company, but it still poses a threat and suggests that potential profit expansion is a long way off.
Recently, tech giant Nvidia invested $50 million in the company, causing the stock price to skyrocket. As part of the agreement, Nvidia will help Recursion optimize its platform and provide the company with its cloud-based tools. Gains in the stock price were short-lived, however, and Recursion is now down 11% for the year.
Why do you deserve to avoid recursion? Although the company’s generation sounds exciting, it’s still too early to say whether it can speed up the drug’s progression process. I’d like to see symptoms of this through their partnerships with pharmaceutical corporations, or see significant progress in the company itself. pipeline before committing to this AI pool.
Adria Cimino does not have any position in any of the above. The Motley Fool recommends International Business Machines and Moderna. The Motley Fool has a disclosure policy.
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