Sunday , 23 June 2024

These 6 Companies Using AI To Discover & Develop New Drugs

An original article by Lorimer Wilson, the Founder and Managing Editor of – a site for sore eyes and inquisitive minds and your Key to making money which was first posted on under the title AI-Focused Drug Discovery Stocks Index with 1094 pageviews to date.

New drugs are currently approved through clinical trials that typically cost billions of dollars and take many years to complete. As we wrote previously, evidence keeps adding up that AI is a potential alternative. Now another study concludes that the AI method of drug discovery is up to 250 times more efficient than the traditional method.

The AI method has the potential to:

  • reduce timelines for drug discovery,
  • increase accuracy of predictions on efficacy and safety and to
  • create better, and more, opportunities to diversify drug pipelines.

A $50 Billion AI Drug Discovery Revolution Is Underway

  • According to Grand View Research the global “AI in drug discovery” market was worth about $1.1 billion last year but should grow at a 30% clip from 2023 to 2030.
  • 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 is underway.

The following 6 clinical-stage small cap companies are using AI to facilitate their discovery and development of new drugs and trade on various Canadian and American stock exchanges.

  1. Recursion Pharmaceuticals (RXRX):
    • Company Description:
      • RXRX specializes in drug discovery through machine learning using its proprietary Recursion Operating System and has one of the world’s most extensive biological and chemical datasets.
      • It has several compounds in phase 1 and 2 studies, including a small molecule therapeutic for cavernous cerebral malformation and another for neurofibromatosis type 2.
      • Recursion claims to conduct millions of experiments per week using supercomputers, machine learning and automated robotic labs.
  2. Absci Corporation (ABSI):
    • Company Description:
      • is focused on antibody design, creating new from scratch antibodies (“de novo antibodies”), and testing them in laboratories in a 6-week process.
  3. AbCellera Biologics (ABCL):
    • Company Description:
      • ABCL develops antibody therapeutics using AI focusing on searching and analyzing the immune systems to find potential antibodies, then outsourcing their initial findings to their partners for further drug discovery.
  4. Schrödinger (SDGR):
    • Company Description:
      • SDGR offers specialized solutions for both small molecule discovery and biologics discovery focusing on structure prediction and protein engineering, including antibody modeling.
  5. Relay Therapeutics (RLAY):
    • Company Description:
      • RLAY specializes in developing an artificial intelligence-driven allosteric drug-discovery platform intended to detects and characterizes interactions that occur on a protein of interest and combines computational methods with experimental approaches across the fields of structural biology, biophysics, and chemistry. Its initial focus on precision oncology and genetic diseases.
  6. Exscientia (EXAI):
    • Company Description:
      • EXAI reported the first AI-designed drug candidate to enter clinical trials and has expanded its AI-based platform to develop novel therapeutic antibodies through generative AI design.
      • Exscientia is collaborating with Bristol-Myers Squibb on a handful of drug candidates and has partnered with Sanofi, GSK and PathAI on drug discovery projects.


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