SNY - Exscientia: A Strategic Hold In The AI-Driven Drug Discovery Sector (Rating Downgrade)
2024-02-25 20:48:41 ET
Summary
- Exscientia's stock has been stagnant, with a 22% drop after the termination of its CEO due to inappropriate conduct.
- The company's pipeline efforts include CDK7 inhibitor GTAEXS617 and LSD1 inhibitor EXS74539, with clinical trials starting this year.
- Exscientia has entered into a collaboration with Sanofi, which could potentially bring in $45 million upfront and $300 million in milestones and royalties.
- Signals from the market, including shifts among institutional backers and a modest short interest, point to a guarded optimism, indicating potential hurdles in keeping up the momentum.
- In light of the amalgamation of breakthrough technology, solid financial health, yet mixed market sentiments, and recent executive upheaval, my recommendation shifts to "hold."
The Exscientia Experiment: When AI Meets Pharma Realities
Exscientia's ( EXAI ) stock is off 22% since my "Buy" recommendation in August. It appears I called a top. The stock has been essentially flat in the past year. The company has garnered some interest at this time due to its utilization of artificial intelligence [AI] in drug discovery. While this is an exciting application in the biotechnology sector, we also need to see progress and results in clinical trials....
Exscientia: A Strategic Hold In The AI-Driven Drug Discovery Sector (Rating Downgrade)