2024 Market Outlook: Thematic #2
In 2024, Genomics and Artificial Intelligence take center stage, as the convergence of A.I., supercomputing, and genomics positions these companies to achieve remarkable advancements and breakthroughs
Thematic #2
Continuing the exploration of AI-related themes, let's delve into the realm of Biotechnology and Genomics. Over the past few years, publicly traded biotech firms have dedicated efforts to commercialize and advance CRISPR-Cas9 technology.
For those unfamiliar with CRISPR, it's a groundbreaking gene-editing technology poised to revolutionize various fields. In essence, CRISPR locates specific DNA segments within cells, allowing subsequent modification. Beyond gene editing, CRISPR has been adapted for tasks such as gene activation or deactivation without altering sequences. Before its introduction in 2012, editing genomes was a laborious and expensive process, but CRISPR has democratized and simplified this procedure, influencing scientific research and potentially altering the genetic makeup of our crops and animals.
The remarkable potential of CRISPR and the genomics revolution lies in our increased ability to predict diseases by comprehending DNA. Crucially, emerging therapeutic techniques, coupled with the affordability of individualized treatments, are anticipated to redefine medicine.
However, the challenge for many genomics companies lies in the disparity between scientific pursuits and Wall Street's demand for swift profitability. While CRISPR is more cost-effective than previous gene-editing methods, its commercialization remains financially demanding. Fortunately, the integration of AI and democratized supercomputing is expected to streamline this process.
In my view, biotech and genomics stocks are poised for significant outperformance in 2024. As AI advancements become more apparent, companies in this sector are likely to reap substantial benefits. As discussed in the last thematic, rather than indirect beneficiaries of AI, my focus is on companies directly leveraging AI and supercomputing for medical advancements.
It’s difficult to pinpoint which companies will be the Apple and Amazon of genomics but there will certainly be some enormous winners in time. My objective is to own those companies that are best positioned to leverage AI and supercomputing.
For example, if you read the last thematic, you’ll recall GNoME discovering 2.2 million new crystal structures which would have taken scientists an enormous amount of time to do “manually”. The same sort of advancement is certain to occur in genomics.