7 Pharma Stocks Harnessing AI Brainpower for Big Breakthroughs

Core Insights - The pharmaceutical industry is increasingly leveraging artificial intelligence (AI) for drug discovery and development, with varying impacts on individual stocks [1] Group 1: Company-Specific Insights - Schrodinger (SDGR): The company utilizes a physics-based computational platform for drug discovery, generating $36.6 million in revenues, primarily from software licensing, which improved by 3.7% [2][3] - Absci (ABSI): Focuses on generative AI for drug creation and has a collaboration with AstraZeneca worth up to $247 million, although it continues to report low revenues [5][6] - Bristol-Myers Squibb (BMY): Engages in multiple AI collaborations to enhance drug discovery and clinical trial success, including a partnership with VantAI that could yield $674 million in milestone payments [7][8] - Eli Lilly (LLY): Benefits from successful weight loss drugs and is exploring AI's potential in drug discovery, with AI producing novel therapeutic candidates [10][11] - Novartis (NVS): Actively involved in over 150 AI projects and has partnered with Microsoft and Nvidia, reporting 11% top-line growth and a 22% increase in operating income [12][13] - Pfizer (PFE): Experienced a decline in share price post-pandemic but has potential for recovery through AI-driven drug development, notably with Paxlovid [14][15] - Novo Nordisk (NVO): Investing in AI through a collaboration to build a supercomputer in Denmark, aimed at accelerating drug discovery and addressing societal challenges [16][17]