The Investment Opportunity Behind AI’s Life-Saving Powers

By Michael A. Robinson

Most investors already know that AI is set to have a dramatic impact on the entire global tech ecosystem. 

We’re talking everything from chips and graphics processors to data centers and software. 

This disruptive technology could generate trillions for the global economy over the next 15 years, says the World Economic Forum. 

And while I am certainly glad to see so much money up for grabs, there’s a powerful part of AI that gets scant attention these days — its impact the biotech sector that MarketsandMarkets values at $412 billion. 

More to the point, AI could save your life. 

Consider that in a recent study, a team of humans looked at roughly four million gene variations and identified about 80,000 that could cause disease — a discover rate of a scant 2%.

At first, the study sounds exhaustive. But it barely skimmed the surface. 

Let’s compare that with how AI did. A recent report in MIT Technology Review revealed that an AI model analyzed a list of 216 million possible variations. The model found a whopping 71 million genetic mutations that could potentially cause disease.

That’s a rate of 32% — or 16 times what the human team found. 

Now you know why, with AI leading the way, this biotech segment is on set to be worth some $20 billion. 

And I’ve uncovered a savvy leader poised to profit from it all.

Deadly Mutations

First, however, let’s put this in perspective. There are a lot of cells in your body — an estimated 30 trillion, in fact.

Cells produce proteins, which are combinations of amino acids made to the exact recipe found in each cell’s DNA. And these proteins do all the things that a cell needs, from transporting substances to signaling other cells.

The thing is, many diseases happen when the recipe for proteins stored in your DNA gets corrupted in a way that changes its function. 

The process can be a bit like randomly changing a single brick in a building. Chances are, it won’t matter. The general shape of the building and its structural integrity will stay the same.

But change a load-bearing brick, for example, and the whole structure could come tumbling down.

That comparison explains how a single misshapen protein can slowly kill the brains of those with Huntington’s disease. It can also cause the lungs and liver of someone with cystic fibrosis to clog up, or change the shape of red blood cells in those with sickle-cell disease.

Other, less obvious conditions are also impacted by misshapen proteins. We’re talking high cholesterol, high blood pressure, diabetes and many cancers, just to name a few. 

Gene Therapy’s Potential

What we need is a way to fix these mutations to prevent or correct the disease. And that’s where gene therapy enters the picture.

Gene therapy is an emerging biotech sector with a lot of growth ahead. Mordor Intelligence says it’s already worth $5.6 billion, and by 2028, it’ll reach nearly $20 billion.

Of course, this is a complex field. So, let me simplify it for you.

Essentially, gene therapy solves the problem of misshapen genetic code at its source. It fixes the mutation that causes the proteins in question to be produced with the wrong parts.

For a long time, the idea seemed like science fiction. But the first gene therapy was approved by the Food and Drug Administration (FDA) in 2017. 

Seven more gene therapies have hit the market with the FDA approving five last year alone. 

Early on, fixing only the precise bit of DNA in need of repair was a challenge. But that has since been overcome. 

The next hurdle is conquering murkier conditions, mutations where scientists can identify a genetic component, but have a hard time spotting a specific mutation that’s causing the disease. 

Heart disease and dementia are two examples of diseases that stem from this type of mutation. This is where AI can play a key role.

Partnering with Microsoft

That’s why as gene therapy emerges, I want to target AI-related biotech firms like Novartis (NVS).

This drug giant helped pioneer the gene-therapy field a decade ago. And it has a specialized manufacturing facility focused on producing gene-therapy compounds. 

It even has a partnership with Microsoft (MSFT) to use AI for drug discovery, including those based on the understanding of the role genes play in diseases.

Novartis needs help with such heavy lifting. After all, there are more than 100,000 proteins in a single human cell. And more than three billion DNA base pairs that encode them all.

Simply put, there’s too much for humans to analyze and discover ...

Especially when some diseases are caused not by a single protein ceasing to work, but by the complex interplay of several proteins together.

Finding new mutations to target with gene therapy is laborious work for humans, but not for AI.

Make no mistake — Novartis intends to remain a leader in this field. 

Last January, the firm extended its gene therapy pact with Voyager Therapeutics to target Huntington’s disease and spinal muscular atrophy. If all milestones are met, the deal could be worth $1.2 billion, the companies said. 

Just three weeks ago, Novartis surprised Wall Street by beating forecasts. Core earnings rose some 17% from last year’s Q1, a gain that was 7% higher than expected. 

Add it all up and you can see why I say there’s no doubt AI will play a major role in defeating genetic diseases. 

And its companies like Novartis — and investors like you — that could reap the financial rewards from AI-powered gene therapy and drug discovery.

That’s all for today. I’ll have more for you soon.

Best,

Michael A. Robinson

P.S. AI can do so much more than just help defeat genetic diseases. In fact, just this week, Weiss Ratings unveiled our most ambitious AI project yet. Click here to see it for yourself.