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Hello, Reader.
At the start of the year, I dusted off my crystal ball. Within the mystical orb, I foresaw several predictions for the year ahead. I shared one of my top forecasts for the year with you last month.
Now, as we round out the third month of the year, I want to share another vision with you today – especially because this one is already coming true.
In my January edition of Fry’s Investment Report, I prophesized that…
AI will trigger a new ‘Golden Age’ of drug discovery and development. This phenomenon will cause a record number of AI-generated therapies to enter clinical trials.
Collectively, the pharmaceutical industry recognizes AI’s potential to revolutionize the drug-discovery process. This transformational technology, like many of those that preceded it, could both improve the plight of humanity and enrich forward-looking investors.
And no major drug company wants to be left behind.
Enter one of my current favorite big-cap drug companies: Bristol-Myers Squibb Co. (BMY).
The biopharmaceutical company is bulking up its profit potential through targeted acquisitions and the deployment of AI processes across its drug discovery platforms – à la my crystal ball.
So, in today’s Smart Money, let’s take a closer look at how Bristol-Myers is revolutionizing drug discovery in the “Age of AI,” and what it means for the company’s potential. Then, I’ll share another prediction that could be game-changing if it comes true.
A Growing AI Roster
The pharmaceutical giant has been rapidly expanding its roster of AI collaborations.
Just last month, the company struck a new AI partnership with VantAI.
This $674 million GenAI drug discovery deal will focus on using VantAI’s generative AI platform (GenAI) to design and develop molecular glues – a type of small molecule that induces or stabilizes interactions between two proteins that would not normally go together.
Prior to this deal, Bristol-Myers also struck AI collaborations with…
- PathAI to utilize AI-powered pathology in translational research and clinical trials.
- Owkin to use that company’s AI platform to help design and execute clinical trials for Bristol-Myers’ cardio-vascular drug candidates.
- Exscientia PLC (EXAI), a pioneer in using AI to precision-engineer drugs, to develop and commercialize one of that company’s most promising therapies.
- Terray Therapeutics Inc. (TGTX) to use generative AI to discover and develop small molecule compounds against various disease targets that Bristol-Myers selects.
In addition to these wide-ranging AI collaborations, Bristol-Myers is also opening its wallet to acquire select biotech companies.
During the last six months alone, Bristol-Myers has inked four takeover deals totaling $23 billion. One of those deals, the $14 billion buyout of Karuna Therapeutics, gives Bristol-Myers access to a largely untapped Alzheimer’s drug market.
By acquiring Karuna, Bristol-Myers also acquired KarXT, which CEO Boerner believes will be “a transformational medicine for patients with schizophrenia, Alzheimer’s psychosis and potentially other indications with multi-billion-dollar sales potential.”
The company has 45 compounds in some stage of development, including 17 in Phase III trials. As these new drugs come to market, and as Bristol-Myers uses AI technologies to develop the rest of its pipeline, the company could produce several major successes.
Another Prediction…
Bristol-Myers initiatives are so new that they have not yet delivered any tangible benefits. But the upside potential is considerable.
And with its growing list of AI collaborations, the company is already proving my New Year’s prediction true.
But that forecast isn’t the only one I want to share with you today…
In 2024, we’re finally going to have to start reckoning with the ‘disruptive force’ of AI in ways most people aren’t prepared for.
In fact, we’ve reached a tipping point that calls for an AI Code Red.
So, I’ve created a short presentation to help you prepare for what’s coming.
I’ll also show you where to uncover the biggest potential profits from the $15.7 trillion AI Revolution… by focusing on a virtually ignored sector that’s set to explode in the days and months ahead.
The sector I’ve identified offers a shot at the kind of explosive gains early investors captured at the beginning of the internet era.
Click here for all the details.
Regards,
Eric Fry
