With the promise of lower costs and shorter development timelines, AI-enabled drug discovery holds massive potential to increase the accessibility of drugs and to treat presently incurable conditions. [Ed. note: Investors should be extremely careful investing in nanocap stocks; do your own careful due diligence.]

• 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.
• According to Boston Consulting Group, as of March 2022, “biotech companies using an AI-first approach [had] more than 150 small-molecule drugs in discovery and more than 15 already in clinical trials.”

The following 8 clinical-stage small cap companies, constituents in munKNEE's latest index, our AI-focused Drug Discovery Stocks Index, use AI to facilitate the discovery and development of new drugs and trade on various Canadian and American stock exchanges. They are listed in order of their stock performances MTD in December along with their YTD performances,  market capitalizations, and a description of each companies focus of operations.

The munKNEE AI-focused Drug Discovery Stocks Index

1. Absci Corporation (ABSI): up 178.4% MTD; up 121.4% YTD
   • is focused on antibody design, creating new from scratch antibodies (“de novo antibodies”), and testing them in laboratories in a 6-week process.
   • Market Capitalization: $254M
2. Recursion Pharmaceuticals (RXRX); up 49.8% MTD; up 33.1% YTD
   • has one of the world’s most extensive biological and chemical datasets and conducts millions of experiments per week using supercomputers, machine learning and automated robotic labs and has several compounds in phase 1 and 2 studies.
   • Market Capitalization: $2.1B
3. Relay Therapeutics (RLAY): up 43.1% MTD; down 24.2% YTD
   • is developing an AI-driven allosteric drug-discovery platform to detect interactions that occur on a protein of interest with an initial focus on precision oncology and genetic diseases.
   • Market Capitalization: $1.2B
4. AbCellera Biologics (ABCL): up 25.5% MTD; down 24.2% YTD
   • uses AI to focus on the search for, and analyzing of, the immune systems to find potential antibodies, then outsourcing their initial findings to their partners for further drug discovery.
   • Market Capitalization: $1.6B
5. Schrödinger (SDGR): up 19.0% MTD; up 98.0% YTD
   • offers specialized solutions for both small molecule discovery and biologics discovery focusing on structure prediction and protein engineering, including antibody modeling.
   • Market Capitalization: $2.3B
6. Lantern Pharma (LTRN): up 12.9% MTD; up 27.8% YTD
   • specializes in developing new classes of precision cancer drugs with novel mechanisms of action and “recycling” previously unsuccessful cancer drugs using machine learning algorithms, genomic data, and novel precision oncology biomarkers.
   • Market Capitalization: $46M
7. Exscientia (EXAI): up 10.7% MTD; up 26.6% YTD
   • is collaborating with Bristol-Myers Squibb on a handful of drug candidates and has partnered with Sanofi, GSK and PathAI on drug discovery projects.
   • Market Capitalization: $733M
8. BioXcel Therapeutics (BTAI): down 20.0% MTD; down 85.8% YTD
   • leverages existing approved drugs and/or clinically evaluated product candidates together with big data and machine learning algorithms to identify new therapeutic applications.
   • Market Capitalization: $93M

Summary

The munKNEE AI-focused Drug Discovery Stocks Index is up 26.2% MTD but remains down 3.7% YTD.

More By This Author:

Cybersecurity Software Stocks Index Up 8% In December; Up 80% YTD
Conservative "Cannabis" Stocks Index Down Slightly In December And YTD
Psychedelic Drug Stocks Index Up In December; Down YTD