The Founder, CEO, and CIO of Ark Invest, Cathie Wood, has highlighted the rising applications of artificial intelligence and how it is poised to impact not only autonomous taxi networks and humanoid robots but also the health care space.
What Happened: According to ARK's proprietary Multiomics Flywheel, Wood highlighted in her recent X post that autonomous taxi networks and humanoid robots are likely to be the largest AI applications during the next five and ten years, respectively; however, “health care is likely to be the most profound.”
The post shared by Ark’s multiomics analyst, Nemo M Despot, underscored that “AI is powering a self-reinforcing loop that accelerates every aspect of multiomics--from generating biological data, to diagnosing diseases, to developing new drugs and cures.”
Multiomics is a biological analysis approach that integrates data from multiple “omic” fields, like genomics, transcriptomics, proteomics, and metabolomics, to gain an understanding of biological systems.
This integrated approach helps researchers uncover complex relationships, identify biomarkers, and ultimately understand the mechanisms behind disease and other biological processes.
He also highlights that companies like Twist Bioscience Corp. (NASDAQ:TWST), Tempus AI Inc. (NASDAQ:TEM), 10X Genomics Inc. (NASDAQ:TXG), and Illumina Inc. (NASDAQ:ILMN) are developing increasingly powerful tools to sequence and analyze DNA faster and more cost-effectively.
Despot stated that AI-powered molecular diagnostics are transforming early disease detection and enabling precise stratification of individual patient biological profiles.
“AI leverages data from multiomic tools and diagnostics to design more effective drugs, delivering results with higher success rates more quickly and less expensively,” he said.
According to him, these next-generation therapies are:
- Approximately 20 times more valuable than standard drugs.
- Two to four times more effective than even today's best-in-class precision medicine.
- The new cures can address even rare diseases economically.
See Also: Bill Ackman Slams Subsidies For Contributing To $37 Trillion National Debt, Hails Trump’s Drug Price Order
Why It Matters: Trump, in a Truth Social post, said that he will sign an executive order on Monday at 9:00 a.m. ET, which will lead the prescription drug and pharmaceutical prices to drop by 30% to 80%.
“They will rise throughout the World in order to equalize and, for the first time in many years, bring FAIRNESS TO AMERICA! I will be instituting a MOST FAVORED NATION'S POLICY whereby the United States will pay the same price as the Nation that pays the lowest price anywhere in the World,” he added.
Trump also believes that healthcare costs in the U.S. will be reduced after this move, and it would save “trillions of dollars.”
This action by Trump is anticipated to most significantly affect Medicare Part B drugs, primarily outpatient prescriptions and biological products, as their prices are directly controlled by the Centers for Medicare & Medicaid Services (CMS).
| Drug Name | Manufacturer(s) | Total Spending | Primary Use |
|---|---|---|---|
| Keytruda | Merck & Co. (NYSE:MRK) | $4.0B | Cancer (various types) |
| Eylea | Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) | $3.4B | Macular degeneration |
| Prolia/Xgeva | Amgen Inc. (NASDAQ:AMGN) | $2.1B | Osteoporosis, bone metastases |
| Opdivo | Bristol-Myers Squibb Co. (NYSE:BMY) | $2.0B | Cancer (various types) |
| Darzalex | Johnson & Johnson (NYSE:JNJ) | $1.9B | Multiple myeloma |
| Avastin | Roche Holdings AG (OTCQX:RHHBY) | $1.8B | Cancer (various types) |
Price Action: The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, rose in premarket on Monday. The SPY was up 2.78% to $564.34, while the QQQ advanced 3.75% to $506.26, according to Benzinga Pro data.
On Friday, the SPY was down 0.13% to $564.34, while the QQQ declined 0.066% to $487.97
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Photo Courtesy: PeopleImages- Yuri A On Shutterstock
