From Nasdaq: 2024-05-22 18:52:02

Artificial intelligence (AI) is transforming drug discovery, with the global AI in drug discovery market projected to reach $4.6 billion by 2030. Drugs discovered with AI boast an 80-90% success rate in Phase I clinical trials, much higher than the historical average. Three promising AI-driven small-cap stocks to watch are Recursion Pharmaceuticals, Inc. (RXRX), Schrödinger, Inc. (SDGR), and Exscientia plc (EXAI).

Recursion Pharmaceuticals, Inc. (RXRX) is a leading clinical-stage company focused on revolutionizing drug discovery. In Q1, the company exceeded revenue and earnings expectations and unveiled a cutting-edge AI supercomputer, sending shares soaring. Analysts expect Recursion stock to continue rising, with a potential upside of up to 79.1%.

Schrödinger, Inc. (SDGR) develops a computational platform for novel molecule discovery. The company reported solid Q1 results and received FDA clearance for an investigational new drug. Looking ahead, analysts expect Schrödinger’s loss per share to narrow significantly in fiscal 2025, with a potential upside of up to 196% based on the Street-high price target.

Exscientia plc (EXAI) is a precision medicine company utilizing AI for drug discovery. Despite a slight revenue decrease in Q1, the company made progress in improving its loss per share and R&D cost savings. Analysts anticipate Exscientia’s loss per share to improve in fiscal 2025, with an average price target implying a potential upside of 75.2%.



Read more at Nasdaq: 3 Small-Cap Stocks to Invest in AI Drug Development