Exscientia: Drug Discovery Using AI For Sanofi And Self-Owned Pipeline

Apr. 12, 2022 2:05 AM ETExscientia plc (EXAI)SNY10 Comments
Chetan Woodun profile picture
Chetan Woodun
5.92K Followers

Summary

  • Exscientia's AI platform is used to identify promising molecules that can proceed to the next step of drug development by large pharmaceuticals like Sanofi.
  • This technology partnership with Sanofi as well as Bristol-Myers brings millions of dollars of benefits to the cash flow.
  • These inflows are subsequently used to offset outflows incurred in developing the biotech's drug pipeline, which is either co-owned or wholly-owned.
  • Comparison with a peer reveals that the market has already rewarded the British company's superior growth metrics with higher valuations, but, considering the $100 million of revenues this year, it deserves better.
  • Updates concerning its ESX161 Covid-combating compound should constitute catalysts for an upside, but, in the same way as other biotechs, expect a high degree of volatility as well.

Medical Laboratory: Microbiology Scientist Wearing Sterile Coverall, Face Shield and Mask Works on Computer Developing Vaccine, Drugs and Antibiotics. Screen Shows High-Tech Concept for DNA research

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Exscientia plc (NASDAQ:EXAI) which is based in the U.K. is not a conventional biotechnology company that develops drugs in a laboratory environment but rather specializes in using its artificial intelligence platform to modernize drug research

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Company presentation (Seeking Alpha)

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Company presentation (Seeking Alpha)

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Quarterly income (Seeking Alpha)

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Company presentation (Seeking Alpha)

https://seekingalpha.com/comparison/new/MCx2bGRyLGxhenI=

Comparison with peers (Seeking Alpha)

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Company presentation (Seeking Alpha)

This article was written by

Chetan Woodun profile picture
5.92K Followers
My aim is to provide differentiated insights, whether it is for investing, trading, or informational reasons. For this purpose, I am not a classical equity researcher or fund manager, but, I come from the IT world as the founder of Keylogin Information and Technologies Co. Ltd. Thus, my research is often backed by analytics and I make frequent use of charts to support my position.I also invest, and thus, in this tumultuous market, I often look for strategies to preserve capital. As per my career history below, I have wide experience, initially as an implementer in virtualization and cloud, and I was subsequently a team leader and project lead, mostly working in telcos.I have also been a mediocre entrepreneur in real estate, and a farmer, and like to dedicate at least 5 hours per week to working on a non-profit basis. For this purpose, I regularly contribute peer reviews and opinions for enterprise tech and help needy families by providing sponsored work.As for Research, I started with Tech stocks before going Multi-Tech with Fintechs, Biotechs, and Cryptotechs.I have been investing for the last 25 years, initially in mutual funds where the "learned economists" would always advise you to "think long term". Got a lot of experience in the 2008/2009 downturn when I lost a lot. Since then I do my own research and have fallen in love with Seeking Alpha because of the unique perspectives it provides to someone investing hard-earned money as well as access to some of the best financial advisors.We live only once but can have many "investment lives" especially when investing in individual stocks.

Disclosure: I/we have a beneficial long position in the shares of SDGR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This is an investment thesis and is intended for informational purposes. Investors are kindly requested to do additional research before investing. This article was edited with the help of Bhoshan Woodun.

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