Investors are increasingly interested in using artificial intelligence (AI) to reshape the drug discovery industry. AI has the potential to make drug development more efficient and effective by streamlining the screening and selection process, as well as by analyzing vast amounts of data generated during clinical trials. Companies like Recursion Pharmaceuticals, AbCellera, Relay Therapeutics, and Schrodinger are leading the way in using AI for drug discovery. Recursion, for example, has partnerships with Nvidia and Bayer and is expected to release clinical readouts for its treatments soon.

AbCellera, known for its collaboration with Eli Lilly on a monoclonal antibody for Covid-19, has several promising research programs in progress. Relay Therapeutics has demonstrated success in reducing the time it takes to identify drug candidates, with an update on its breast cancer treatment expected later this year. Schrodinger's computational platform focuses on physics-based drug target identification and has collaborations with pharmaceutical companies such as Takeda. While these companies have faced challenges in the market, analysts remain optimistic about their long-term potential.