Basket of biotechs most likely to benefit from advances in AI in 2025
While AI has driven rapid gains in semiconductors, its impact on the real economy is lagging, especially in biotech. Here, we present an equal-weighted basket of seven biotechs, up 38% in the past year, including Alnylam and Sarepta, expected to benefit from AI in 2025.
While AI has driven rapid gains in semiconductors, its impact on the real economy is lagging, especially in biotech. Here, we present an equal-weighted basket of seven biotechs, up 38% in the past year, including Alnylam and Sarepta, expected to benefit from AI in 2025, with breakthroughs in drug discovery and genetic therapies.
Two years into the widespread rollout of GPT, the transformative impact of AI on real-world businesses is still in its early stages. Leading the first wave of industries expected to be revolutionised is biotech.
From drug discovery to clinical trials, AI is about to change how quickly and effectively biotech companies bring solutions to market. Recent estimates suggest that by 2030, the AI-driven biotech market could generate over $20 billion annually, and forward-looking companies are racing to harness this transformative power.
With the S&P 500 (black line) up a whopping 35% in the past year, the seven biotech companies featured here in Emergers AI-focused biotech basket (green) have collectively outperformed with a striking 38% increase. While volatile, this basket of mid-cap biotechs, demonstrates the tremendous power and upside potential still on the table as AI begins to take center stage.
Biotech and AI a match made in heaven
AI's ability to accelerate discovery, predict drug interactions, and optimize trial designs is about to make it indispensable in biotech. Traditional drug development processes can take over a decade, with billions invested before seeing any returns. AI-driven platforms, however, are poised to cut these timelines in half, reducing costs and increasing the probability of success.
Emergers AI Biotech basket
Alnylam Pharmaceuticals (ALNY US)
Up 80% in the past year, Alnylam has made headlines with its success in RNA interference therapies. AI-driven precision medicine has enabled the company to optimize target identification and improve delivery mechanisms, further solidifying their leadership in rare genetic disorders.
