Exscientia

Morgan Stanley's Vikram Purohit maintains a Buy rating on Sana Biotechnology (SANA) with a $9.00 target, despite a $59.92M Q3 loss. Shares opened at $2.60. The Street consensus is a Moderate Buy with a $10.67 target, indicating a 310.38% upside. SANA develops engineered cell therapies.

2024 was a challenging year for the biopharma industry, with companies like Bayer, Bristol Myers Squibb, and Johnson & Johnson cutting hundreds to thousands of jobs. Cassava Sciences announced layoffs of 10 employees, 33% of its workforce, following a failed Phase III trial for its Alzheimer's drug. CytomX Therapeutics cut 40% of its staff to focus on clinical programs. Velia, a San Diego biotech, is shutting down, affecting 47 employees. Regeneron's acquisition of Oxular led to layoffs, with no Oxular employees joining Regeneron. Javara, Ring Therapeutics, Outlook Therapeutics, Editas, Bavarian Nordic, BenevolentAI, Chroma Medicine and Nvelop Therapeutics, Cellectar Biosciences, Carisma Therapeutics, Belharra Therapeutics, National Resilience, AmplifyBio, Agenus, Alligator Bioscience, Idorsia Pharmaceuticals, Kronos Bio, Novartis, Recursion Therapeutics, Medigene, Alector, Bristol Myers Squibb, Sonata Therapeutics, 23andMe, Johnson & Johnson, Merck, Gilead Sciences, Adaptimmune, Sensei Biotherapeutics, Marinus Pharmaceuticals, Orna Therapeutics, Thermo Fisher Scientific, Charles River Laboratories, Aurinia Pharmaceuticals, Viracta Therapeutics, Astellas Gene Therapies, Sana Biotechnology, Sage Therapeutics, Compass Pathways, Spero Therapeutics, ICON, Pfizer, Takeda, SalioGen Therapeutics, Evonik, Medtronic, CareFusion Resources, Turnstone Biologics, Leo Pharma, Astellas Pharma, Prime Medicine, Kaléo, Stryker, Relay Therapeutics, ImmunityBio, Shattuck Labs, Inventprise, bluebird bio, Athira Pharma, AGC Biologics, Oncternal Therapeutics, Biosense Webster, Vesigen Therapeutics, Connect Biopharma, BioMarin, IN8bio, Edwards Lifesciences, DermTech, Repare Therapeutics, Genentech, Tome Biosciences, Aadi Bioscience, Lykos Therapeutics, Evotec, Galera Therapeutics, Grail, Ovid Therapeutics, Lexicon Pharmaceuticals, Acelyrin, Boundless Bio, FibroGen, Ajinomoto Bio-Pharma Services, AN2 Therapeutics, Entero Therapeutics, Precigen, Sumitomo Pharma America, uniQure, Vir Biotechnology, Arbutus Biopharma, HilleVax, and Bayer also announced significant layoffs, reflecting a tough year for the industry.

AI is revolutionizing drug development, with companies like Genesis Therapeutics, Exscientia, Insilico Medicine, and Iambic Therapeutics leveraging AI for drug discovery. These firms use AI to identify and optimize small molecules for treating diseases, including cancer and fibrosis, aiming to accelerate drug development and reduce costs. AI platforms like GEMS, generative AI, and multimodal transformers are key to their success, enabling efficient exploration of chemical spaces and prediction of drug properties.

GlaxoSmithKline partners with Exscientia, leveraging AI to expedite drug discovery, aiming to reduce time and cost by 75%. The collaboration targets novel small molecules for up to 10 diseases, with GSK paying £33 million upon achieving milestones. Exscientia's AI platform, combining big data and experienced drug developers, automates drug design, promising faster, cost-effective discovery without compromising quality.

Eric Topol, MD, highlighted AI's potential in healthcare at Danaher's summit, emphasizing its role in improving diagnostics, patient care, and drug discovery. Despite challenges like ethical guidelines and trust, AI's rapid advancement, exemplified by tools like AlphaFold and ChatGPT, is transforming medicine. Experts advocate for embracing AI to enhance healthcare outcomes.

75% of C-suite executives in life sciences are optimistic about 2025, citing growth and innovation. AI in biopharma is expanding, with increased investments and partnerships. Cancer vaccines and gene editing are advancing, with late-stage trials and new therapies. VC and IPO markets are rebounding, and M&A activity is expected to increase. Multiomics tools are expanding, and spatial biology is consolidating. Regulatory changes under Trump 2.0 may impact biopharma and health policy.

The Global AI in Clinical Trials Market, valued at $1.8B in 2022, is projected to reach $8.27B by 2030, growing at a 21% CAGR. AI enhances trial efficiency, speeds drug discovery, and reduces costs, with wearable tech improving patient adherence. Despite benefits, challenges include high R&D costs, a lack of skilled professionals, and strict regulations. The COVID-19 pandemic accelerated AI adoption for drug development and virtual trials. North America led the market in 2020, with Asia-Pacific expected to grow significantly. Key players include IBM Watson and Google-Verily.

Recursion Pharmaceuticals, an AI-powered biotech, leverages AI for drug discovery, potentially revolutionizing medicine. Its merger with Exscientia enhances its platform, offering a promising pipeline of therapeutic candidates. However, financial losses and competitive landscape pose risks, making it too early to invest with conviction.

Key players in AI oncology include Siemens Healthineers, GE Healthcare, and Medtronic, focusing on AI for early cancer detection, diagnosis, and therapy. Strategies like acquisitions and product innovations enhance global presence and treatment efficacy. Siemens and GE Healthcare have developed AI tools for imaging and personalized treatment, while Medtronic uses AI for real-time polyp detection in colonoscopies.