Google dives deeper into healthcare AI… huge stocks winners from the sector… big growth numbers from Luke Lango… how Eric Fry is investing…
On Tuesday, you might have missed a headline that carries enormous implications…
Google Cloud launches A.I.-powered tools to accelerate drug discovery, precision medicine
This is huge – both from a disease-fighting perspective and from a wealth-generating perspective.Regular Digest readers will remember that for the last several months, we’ve featured commentary from our CEO, Brian Hunt, about eyebrow-raising returns coming from the biotech sectorWe’re talking about gains of hundreds of percent in only a handful of weeks. Brian has been begging investors to be aware of what’s happening and take advantage.His latest biotech update came on Monday. Here’s his email:
Top stocks of the past 30 days.Look at all the therapeutics, pharma, immuno, oncology, etc.
By the way, I’m showing you only about half of the list. There are simply too many biotech names to share for space reasons, and you get the idea.What is going on here?
We’re entering a golden age when artificial intelligence will move us light-years forward with precision medicine
This has the potential to end all sorts of diseases and sickness as we know them, while creating a market that will be worth not just billions, but trillions.From the CNBC article referenced above that highlights Google’s foray into AI/biotech
The new developments mark Google’s latest advancement in the red-hot AI arms race, where tech companies are competing to dominate a market that analysts believe could someday be worth trillions.
On Tuesday, our hypergrowth expert and editor of Innovation Investor Luke Lango profiled this opportunity.From Luke:
We’re confident that artificial intelligence – or AI – will fundamentally reshape our society over the next 10 years.One of the most profound impacts will be in the healthcare industry. And that’s why we think AI biotech stocks are some of the best fortune-making stocks to buy today.
Digging into the details, perhaps the clearest opportunity for investing alongside AI and biotech comes through drug discovery.
How the drug discovery process is about to be upended
Let’s jump back to Luke:
Consider this: It takes about $900 million and 13.5 years to develop a new successful drug.That is an economically significant and very long undertaking. In fact, it’s so expensive and time-consuming that firms cannot afford to push many drugs into the development process.And relative to what is possible given all the permutations of human biological data, this creates a huge shortage in drug candidates and programs. Ever wonder why there are so many diseases out there, yet so few drugs to fight them? This is why.The drug discovery and development process is prohibitively long and expensive. But AI can significantly shorten and cheapen this process.
Here’s how Brian recently put the AI/biotech drug discovery opportunity:
…Artificial intelligence will make it so our development and testing cycles speed up by a factor of at least 20X.This is because computer programs powered by AI will be able create a digital twin of any kind of drug or treatment you can think of… and then perform billions of tests on billions of different versions of said innovation. And it can do that in less than the time it takes for me to say this sentence.
If you’d like to read more about a digital twin, as well as more of Brian’s research, click here to reread our Digest from March 16.The potential is so enormous that drug “discovery” is a term that could soon be outdated.On that note, here’s Molly Gibson, the Chief Strategy and Innovation Officer at Generate Biomedicines (underline added):
We’ve tried to predict biology for decades. But what if you could actually invent new biology—biology that never existed and nature has never come up with?And if you could do that, you could then start to program therapeutics versus discover them.
We’re standing on the edge of this quantum leap forward today, thanks to AI.
We’re already seeing the marriage of AI and biotech begin to play out
To illustrate, Luke points toward Japanese pharma giant Takeda Pharmaceutical. Earlier this year, it bought an experimental psoriasis drug for $4 billion – a drug that was created in only six months by using AI. Takeda isn’t alone.Other pharma giants like Bayer, Roche, Sanofi, and AstraZeneca are actively using AI technology for drug discovery purposes.Here’s Luke with some numbers on all of this:
Research firm Deep Pharma Intelligence estimates that investments in the field of AI-powered drug discovery have tripled over the past four years to nearly $25 billion.Morgan Stanley believes that AI-powered drug discovery will lead to an additional 50 novel therapies being brought to market over the next decade, with annual sales in excess of $50 billion!
In other words, a $50 billion AI drug discovery revolution starts now. Is your portfolio positioned for it?
The investment opportunities aren’t restricted to drug development
Given the enormity of this opportunity, Luke and Brian aren’t the only analysts with AI/biotech in their crosshairs.Our macro expert and editor of Investment Report Eric Fry is also tracking developments in the sector. In fact, in his latest issue of Investment Report, his recommendation was a direct play on AI and health care.I can’t reveal its name out of respect for Eric’s subscribers, but he describes it as a “solid, steadily growing medical imaging company that also includes considerable fast-growth potential from its AI product line and investments.”What I can share with you is some of Eric’s research on the broad opportunity:From his latest issue, which describes the AI/biotech opportunities beyond just drug discovery:
According to Grand View Research, artificial intelligence will become a key driver of medical device innovation over the coming decade.The research firm predicts the AI component of the healthcare market will skyrocket from $15.4 billion in annual sales last year to more than $200 billion in 2030. That’s a compound annual growth rate of 37.5%.To support its robust forecast, Grand View explains…“Artificial intelligence (AI) and machine learning (ML) algorithms are being widely adopted and integrated into healthcare systems to accurately predict diseases in their early stage based on historical health datasets…Healthcare functions such as diagnostics, patient management, medication management, claims management, workflow management, integration of machines, and cybersecurity saw a remarkable surge in the integration of AI/ML technologies.”
To learn more about Eric’s recommendation, and to access his other research as an Investment Report subscriber, click here.As for Luke’s favorite way to invest today, he describes the stock as “a tiny, brand-new firm that’s developing next-generation computers that we believe will power all these AI-powered drug discovery simulations.”It trades for less than $10, despite having surged over 100% here in 2023. You can learn more here.
