A recent study highlighted in the journal Drug Discovery Today by researchers from Boston Consulting Group points to promising results for AI-discovered drugs, which boast an 80%–90% success rate in Phase 1 clinical trials. These findings are based on data from over 100 AI-centric biotech firms that have successfully brought drugs to clinical trials.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
The rise of artificial intelligence in drug discovery is changing the pharmaceutical landscape, as overall clinical success rates have nearly doubled from the traditional averages of 5%–10% to around 9%–18%. This will likely improve the efficiency of drug development by reducing costs or by increasing the number of new drugs brought to market with unchanged budgets.
As a result, companies like Google’s (NASDAQ:GOOG) (NASDAQ:GOOGL) DeepMind have developed new AI models to speed up drug discovery. Other companies like Schrodinger (NASDAQ:SDGR), which licenses out its drug discovery software while also working on its own candidates, have been partnering with larger firms such as Bristol Myers Squibb (NYSE:BMY).
What Is the Best Drug Company to Invest In?
Turning to Wall Street, analysts expect the most from SDGR stock. Indeed, it is rated as a Moderate Buy with over 62% upside potential thanks to its average price target of $36.90 per share.
