In this article, we will take a look at our list of 5 AI healthcare stocks to buy. To see more such companies, go directly to List of AI Healthcare Stocks.
5. AbCellera Biologics Inc. (NASDAQ:ABCL)
AbCellera Biologics Inc. (NASDAQ:ABCL) is a Canadian company that is operating in the domain of human antibodies. The company is known for its key role in Pandemic Prevention Platform, a project of DARPA’s Biological Technologies Office. AbCellera Biologics Inc. (NASDAQ:ABCL) was one of the first companies to work on COVID-19 vaccines as it used its technology to help bring the world’s first COVID-19 antibody drug candidate into human clinical trials just 3 months after its first screen of a patient blood sample.
Last month, the stock jumped after AbCellera Biologics Inc. (NASDAQ:ABCL) signed a multi-year agreement with AbbVie (NYSE:ABBV) to discover antibody therapies.
AbCellera Biologics Inc. (NASDAQ:ABCL) is seeing an uptick in hedge fund sentiment. A total of 26 funds in Insider Monkey’s database reported having stakes in AbCellera Biologics Inc. (NASDAQ:ABCL) as of the end of the third quarter, compared to 17 funds in the previous quarter.
4. Recursion Pharmaceuticals Inc. (NASDAQ:RXRX)
Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) is one of the best and most notable AI healthcare stocks to buy. The Utah-based Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) uses AI-enabled human biology map for drug discovery and related research. Recursion Pharmaceuticals Inc. (NASDAQ:RXRX)’s drug discovery platform combines chemistry, automated biology, and cloud computing tools to offer new and innovative therapeutic candidates. The company’s platform is known to have significantly reduced the time it takes to come up with new drug candidates.
Of the 920 hedge funds tracked by Insider Monkey as of the end of the third quarter, 15 had stakes in Recursion Pharmaceuticals Inc. (NASDAQ:RXRX).
In November, Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) posted solid Q3 results. Its revenue jumped 420% in the quarter and beat estimates by $6.31 million.
3. Exscientia plc (NASDAQ:EXAI)
Exscientia plc (NASDAQ:EXAI) is yet another AI-based drug discovery health stock in our list of AI healthcare stocks. Exscientia plc (NASDAQ:EXAI) uses AI and machine learning to make new drug candidates. Its drug pipeline looks promising, with several oncology-focused drugs.
The UK-based Exscientia plc (NASDAQ:EXAI) is focused on small molecule drug candidates. Exscientia plc (NASDAQ:EXAI)’s AI platform provides solutions for drug identification, drug candidate design, translational models, and patient selection.
A total of 8 hedge funds tracked by Insider Monkey reported having stakes in Exscientia plc (NASDAQ:EXAI) at the end of the third quarter. The biggest stakeholder of the company is Kerr Neilson’s Platinum Asset Management, with a $23.1 million stake.
2. Butterfly Network, Inc. (NYSE:BFLY)
Butterfly Network, Inc. (NYSE:BFLY) is a Massachusetts-based company that makes AI-based solutions for diagnostics and imaging. Butterfly Network, Inc. (NYSE:BFLY) last year introduced Butterfly Blueprint as well as the world’s first FDA-cleared AI guidance software. Butterfly Network, Inc. (NYSE:BFLY) said that the software works with hospital systems’ infrastructures.
Butterfly Network gets investors’ attention because it is a Bill Gates-backed company. As of the end of the third quarter, The Gates Foundation has a $4.8 million stake in Butterfly Network, Inc. (NYSE:BFLY).
Of the 920 hedge funds tracked by Insider Monkey as of the end of the third quarter, 16 funds had stakes in Butterfly Network, Inc. (NYSE:BFLY), compared to 14 funds in the previous quarter.
1. Schrodinger, Inc. (NASDAQ:SDGR)
Schrodinger, Inc. (NASDAQ:SDGR) is an AI-based drug discovery platform company. Schrodinger, Inc. (NASDAQ:SDGR)’s platform is used for drug discovery, atomic-scale simulation of chemical systems, modeling of antibodies and much more. Last year, the company received an approval from FDA to study its computer-designed therapy for non-Hodgkin lymphomas in an early-phase trial. Schrodinger’s AI-based platforms processed 8.2 billion potential compounds over a period of 10 months, identifying 78 that were synthesized and filtered through preclinical experiments to select the most promising candidate.
On January 9, Schrodinger, Inc. (NASDAQ:SDGR) and Bristol Myers Squibb (NYSE:BMY) amended their existing partnership to add a new discovery program in neurology. Schrödinger announced that it received an upfront payment for the new program. Schrodinger, Inc. (NASDAQ:SDGR) also has partnerships with Otsuka Pharmaceutical (OTCPK:OTSKF) (OTCPK:OTSKY) and the Japanese company’s unit Astex Pharmaceuticals.
Here is what Baron Growth Fund has to say about Schrödinger, Inc. in its Q4 2021 investor letter:
“Our Disruptive Growth investments are pursuing idiosyncratic opportunities across the entirety of the global economy. Schrodinger, Inc. is pushing the boundaries of drug development by pursuing novel diagnostics and therapeutics in areas including neurodegenerative disease and blood cancers.”
You can also take a peek at 10 Stocks to Buy According to Mark T. Gallogly’s Centerbridge Partners and 8 Stocks to Buy According to Alexander Captain’s Cat Rock Capital.
