AI-Powered Startups Aim to Disrupt Biopharma Industry, But Profitability Remains Uncertain
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Ginkgo Bioworks uses AI to help biopharma companies produce biomolecules more efficiently and cost-effectively. This could lead to economies of scale and profitability as it grows.
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Recursion Pharmaceuticals uses AI to screen drug candidates, advancing the most promising ones to clinical trials. This aims to accelerate drug development.
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Both companies offer AI tools to biopharma collaborators to improve their work.
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However, neither Ginkgo nor Recursion are currently profitable. Revenue is unstable quarter to quarter.
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These innovative but unproven biotech companies could disrupt the industry if their AI platforms demonstrate meaningful success. But they carry risks for investors.