AI Rewrites Life Sciences
Austin Soukup@austin_soukup
−5.2%
since Oct 6
The idea
I believe AI's biggest underrated application right now is life sciences, with real breakthroughs possible in the next 2-3 years. The basket spreads across AI-native drug designers chasing near-term trial catalysts, balanced by larger pharma and bio companies applying AI, owners of irreplaceable health data, the AI engines behind the modeling, and the tools that make it all work, so no single name or failed trial defines the outcome. I keep 10% in cash to add when the market overreacts to a stumble I don't agree with, and I'm looking to hold this for years as the science plays out.
What it owns
- Established pharmaceutical and biotech companies using AI to accelerate discovery and development of new treatments across cancer, weight loss, and other major diseases. · Eli LillyLeads the weight-loss drug market and is investing heavily in AI-driven drug discovery to build its pipeline for future treatments., Novo NordiskCompetes as a leader in weight-loss drugs and applies AI to design the next generation of obesity and metabolic treatments., AstraZenecaHas integrated AI deeper into its discovery process than most large pharmaceutical companies and partners with AI-native firms to advance clinical candidates., Vertex PharmaceuticalsUses AI across its research pipeline and has a track record of turning complex biology into approved drugs, with newer programs advancing in pain and kidney disease., MerckApplies AI across its cancer research programs, filling its pipeline with computationally assisted drug candidates beyond its current oncology portfolio., Intuitive SurgicalPossesses millions of recorded robotic surgeries, generating irreplaceable health data that trains AI systems for smarter surgical decision-making.26%
- Companies holding patient records, genomic data, and clinical trial information that cannot be easily replicated, providing essential training material for AI drug development. · Tempus AILicenses clinical and genomic data to pharmaceutical companies developing AI-designed drugs, capturing value from the irreplaceable information needed to test new treatments., IQVIA HoldingsOperates clinical trials and owns one of the largest health data repositories where AI-designed drug candidates get tested, making it difficult for others to replicate., Guardant HealthBlood tests detect cancer early and produce genomic data that trains better cancer AI models, combining screening with the data needed to improve detection and treatment., NateraGenetic testing at scale produces the kind of health data needed to develop and validate AI-designed treatments., Labcorp HoldingsProcesses lab tests for millions of Americans and sells the resulting datasets to AI companies developing new treatments, benefiting from growing demand for real patient information.19%
- Companies building the foundational AI models, compute infrastructure, and platforms that enable biological research and drug discovery at scale. · NVIDIAProvides the computing chips and BioNeMo platform that pharma and biotech companies depend on to run AI models for drug design and protein analysis., AlphabetOwns AlphaFold and Isomorphic Labs, which have demonstrated that AI can solve biological problems humans could not, with partnerships advancing toward clinical applications., MicrosoftSells health-focused AI applications through Azure and its healthcare tools to hospitals and pharma companies applying computational methods to drug development and patient care.18%
- Companies founded specifically to discover and design drugs using AI, where computational breakthroughs typically appear first before reaching patients. · Recursion PharmaceuticalsDesigns drugs from scratch using AI and has clinical trials underway to prove that computational approaches can produce viable new medicines., SchrodingerProvides physics-based molecular design software that the industry uses to discover new drugs computationally, while also developing its own drug candidates., AbCellera BiologicsUses AI to identify antibodies faster than traditional methods, creating a new-generation drug discovery engine with growing partnerships and internal candidates moving toward clinics., Relay TherapeuticsDesigns drugs by computationally modeling how proteins move, targeting cancer types that conventional chemistry struggled to address., Ginkgo BioworksUses AI to design biology beyond pharmaceuticals, including new foods and materials, with growing cell programming partnerships and expanding AI tools business.17%
- Manufacturers of sequencing equipment, lab instruments, and bioprocessing gear that every drug discovery and manufacturing effort requires regardless of the approach. · IlluminaManufactures sequencing equipment that generates the genomic data AI models train on, serving as essential infrastructure underlying all computational biology advances., DanaherManufactures the bioprocessing equipment needed to convert computationally designed molecules into manufactured medicine at scale., Thermo Fisher ScientificSells instruments and services essential to every research lab, so growing AI-driven drug and biotech development drives continued spending regardless of which breakthrough wins.10%
- Cash10%