MunAiMarkets AI-powered Drug Discovery Stocks Portfolio DOWN 9%! - ARCHIVED

According to research from Grand View Research, the AI-powered drug discovery process is expected to grow by a compound annual growth rate of 30% between now and 2030 and, according to Morgan Stanley, that should result in as many as 50 novel therapies being brought to market by then and generate annual sales in excess of $50B.

What Is “Short Interest”?

Short interest refers to the total number of shares of a particular stock that have been sold short by market participants but have not yet been covered or closed out. It’s often expressed as a percentage of the total stock’s outstanding shares.

In simpler terms, it’s a measure of how many investors are betting that a stock’s price will fall. When short interest is high, it indicates that many investors are bearish on the stock. Conversely, a decrease in short interest suggests that investors are becoming more bullish.

The MunAiMarkets AI-focused Drug Discovery Stocks Portfolio

There are only 6 stocks in the Portfolio and their performances are highlighted below, in descending order, for the month of October  along with a description of their areas of focus, market capitalizations, product pipelines, short interest percentages and the reasons for their declines:

Attn. Reader: Click on the highlighted stock symbols for detailed information.

1. AbCellera Biologics (ABCL): UP o.4% in October
   • Area of Focus: searches for antibodies from natural immune responses which are then outsourced to their partners. (see details here)
   • Market Capitalization: $804M
   • Pipeline: (see here)
   • Short Interest: 5.9%
2.  Absci Corporation (ABSI): DOWN 3.3% in October
   • Area of Focus: analyzes drug characteristics that may provide therapeutic benefit. (see details here)
   • Market Capitalization: $445M
   • Pipeline: (see here)
   • Short Interest: 11.6%
3. Exscientia (EXAI): DOWN 4.0% in October
   • Area of Focus: designs and develops differentiated medicines for diseases with high unmet patient needs (see details here)
   • Market Capitalization: $663M
   • Pipeline: (see here)
   • Short Interest: 2.2%
4. Schrödinger (SDGR): DOWN 6.1% in October
   • Area of Focus: uses its platform to discover novel molecules which it leverages to build a pipeline of its own clinical programs in addition to selling access to its platform to other pharmaceutical firms (see details here)
   • Market Capitalization: $1,310M
   • Pipeline: (see here)
   • Short Interest: 13.9%
5. Recursion Pharmaceuticals (RXRX): DOWN 9.5% in October
   • Area of Focus: decodes biology by integrating technological innovations to industrialize drug discovery (see details here)
   • Market Capitalization: $1,800M
   • Pipeline: (see here)
   • Short Interest: 21.7%
6. Relay Therapeutics (RLAY): DOWN 24.4% in October
   • Area of Focus: uses its platform to enhance small molecule therapeutic discovery in targeted oncology and genetic disease indications (see details here)
   • Market Capitalization: $949M
   • Pipeline: (see here)
   • Short Interest: 7.3%
   • Reasons for Weakness:
     1. primarily due to the company undertaking a secondary share issue that will significantly increase the number of shares outstanding and which was seen as dilutive by investors (i.e. would reduce the value of existing shares) leading to a negative reaction in the market, causing the stock price to drop

Summary

On average, the 6 constituents in the MunAiMarkets AI-focused Drug Discovery Stocks Portfolio (averaging $990M in market capitalization) went DOWN 8.5% in October.