Have been long looking at pharma AI and finally decided to dive into it. May be too slow moving for some. Took a chunk of change ($100k) and allocated it as such.

30% RXRX (Recursion Pharmaceuticals)

•basically AI drug discovery platform with some serious backing (Roche, NVDA, Bayer)
•AI-first drug discovery using massive biological imaging datasets (under aappreciated)
•positioned for industrial-scale drug discovery
•early stages and burning cash ATM

Context: pure AI drug discovery play

30% SDGR (Schrödinger)

•embedded software AI across pharma already, already generating real revenue today
•combines AI with physics-based modeling (more mainstream and not “new science”)
•has internal drug pipeline as well
•”picks and shovels” pharma AI type stock (ie. NVDA for AI)

Context: AI drug discovery + embedded software

20% TEM (Tempus AI)

•data and diagnostics, not drug discovery
•not dependent on FDA outcomes, ideally becomes “Bloomberg of healthcare data”
•monetizing faster than drug discovery companies
•huge focus on cancer but trying to expand beyond that

Context: non-drug discovery platform trying to advance cancer technology through tracking outcomes and relaying from that

20% ABSI (Absci)

•very early generative unproven biology
•if generative biology works it becomes huge, but could fall flat on its face (huge vision, little validation)

Context: the true “lottery ticket” play

Overall, I view TEM and SDGR as “safer” more validated plays already with some entrenchment in the side already with large pharma partners. RXRX has the biggest narrative with having real partners and platform to scale it but more dependent on “hitting” a drug. ABSI is a true lotto ticket play. Looked at RLAY (Relay) but didn’t like it.

Anyone else been looking at Pharma AI. Smart money is accumulating, it definitely has no retail winds yet. I understand that can take years sometimes though, but who knows when to time that.