+4.7%
since Oct 6
The idea
I believe big pharma companies that have invested seriously in AI drug discovery will reach approvals faster than current prices reflect, since these stocks still trade like old-line drugmakers rather than accelerated ones. The core holding is five committed adopters, LLY, NVS, AZN, SNY, and JNJ, who've built real AI capability into their pipelines, plus MRK and PFE, where looming patent cliffs make AI-driven speed a necessity. I spread it across seven names so no single trial failure derails the thesis, and I keep 10% cash on hand to add if weakness hits while the AI story stays intact.
What it owns
- These companies have embedded artificial intelligence across their drug discovery processes, partnering with AI-native biotechs and building internal machine learning teams to accelerate pipeline progress. · Eli Lilly and CompanyIt runs one of the deepest AI drug discovery efforts in pharma, with partnerships across AI-native biotechs and in-house machine learning teams positioned to produce visibly faster pipeline progress., Novartis AGIt is acquiring a drug-development platform to move faster on AI-era timelines rather than building capability slowly, betting that the platform feeds its pipeline after the deal closes., AstraZeneca PLCIt has embedded AI across its research process and partners with multiple AI discovery firms while running one of the most productive pipelines in the industry, relying on AI-assisted candidates to advance at an above-average rate., Sanofi SAIt has committed to becoming an AI-first drug company through large partnerships with AI discovery firms and machine learning embedded in its research organization, depending on those efforts to produce faster or cheaper clinical-stage assets., Johnson & JohnsonIt applies its largest-in-class balance sheet to AI drug discovery and machine learning across its pharma unit, with scale that cushions individual failures while producing pipeline candidates from its AI investments.64%
- These companies face imminent patent cliffs on major revenue drivers and are deploying AI discovery tools to rebuild their pipelines fast enough to offset the losses. · Merck & Co.It faces major patent losses on its largest drug and is using AI discovery deals to rebuild its pipeline with the urgency needed to have replacement candidates in trials before the cliff arrives., Pfizer Inc.It faces significant patent expirations this decade and has deployed AI tools to accelerate drug candidates that can fill the revenue gap faster than its traditional development process allows.26%
- Cash10%