AI-Focused Drug Discovery Stocks Portfolio Hit Hard: Down 14% MTD
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An Introduction
The AI-powered drug discovery process is expected to grow by a compound annual growth rate of 30% between now and 2030 according to research from Grand View Research. This should result in approximately 50 novel therapies being brought to market over that 10 year period according to Morgan Stanley and generate annual sales in excess of $50 billion by then.
The munKNEE AI-focused Drug Discovery Stocks Portfolio
There are 6 AI-focused clinical-stage drug discovery currently trading on North American stock exchanges and they are tracked in the munKNEE AI-focused Drug Discovery Stocks Portfolio. Their stock performances MTD (as of the close of business on August 13th) are highlighted below, in descending order and in the month of July, along with a description of their areas of focus, their market capitalizations, their product pipeline and the latest news, analyses and commentary on each, where pertinent:
- Exscientia (EXAI): DOWN 5.5% MTD; UP 3.7% in July
- Schrödinger (SDGR): DOWN 10.6% MTD; UP 15.2% in July
- Area of Focus: uses its platform to discover novel molecules which it leverages to build a pipeline of its own clinical programs in addition to selling access to its platform to other pharmaceutical firms (see details here)
- Market Capitalization: $1,450M
- Pipeline: (see here)
- Latest News, Analyses and Commentary:
- Absci Corporation (ABSI): DOWN 11.8% MTD; UP 42.9% in July
- AbCellera Biologics (ABCL): DOWN 18.1% MTD; UP 10.1% in July
- Recursion Pharmaceuticals (RXRX): DOWN 20.2% MTD; UP 9.3% in July
- Relay Therapeutics (RLAY): DOWN 20.2% MTD; UP 26.1% in July
Summary
On average, the 6 constituents in our AI-focused Drug Discovery Stocks Portfolio (averaging $1,007M in market capitalization) are DOWN 13.7% MTD vs. going UP 16.1% in July.
How To Analyze A Biotech Company’s Financial Health
Bill McNarland expands on the above information expressing the need (see here) to analyze cash flow, burn rate, liquidity, working capital, debt levels, and revenue growth, all of which are crucial for sustaining lengthy development processes. He also points out the need for potential investors to assess the total addressable market, competition, and uniqueness of treatments before making any investment decisions.
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Disclosure: None
This article has been composed with the exclusive application of the human intelligence (HI) of the author. No artificial intelligence (AI) technology has been deployed. ...
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