Recursion Pharmaceuticals Faces Challenge as Eli Lilly Plans Largest AI Supercomputer
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Technological Comparison: Recursion Pharmaceuticals boasts the largest AI supercomputer in the pharmaceutical industry, utilizing a proprietary operating system and algorithm for virtual experiments aimed at improving clinical trial success rates; however, it currently lacks any marketable products, indicating a deficiency in commercialization capabilities.
- Market Risk Assessment: Despite partnerships with pharmaceutical giants like Merck and Roche, Recursion's research has largely yielded empty results, leading to a high-risk stock profile that requires cautious consideration from investors.
- Eli Lilly's Strategic Positioning: Eli Lilly plans to build an even larger AI supercomputer, leveraging its extensive clinical trial data to train AI drug discovery models, thereby gaining a competitive edge in drug development and showcasing its strong market position.
- Investment Recommendation: Compared to Recursion, Eli Lilly, as an established pharmaceutical company, has stable revenue and profitability, presenting a lower investment risk, making it more suitable for investors looking to profit from the AI revolution in drug development.
Analyst Views on LLY
Wall Street analysts forecast LLY stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LLY is 1078 USD with a low forecast of 800.00 USD and a high forecast of 1300 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 1079.750
Low
800.00
Averages
1078
High
1300
Current: 1079.750
Low
800.00
Averages
1078
High
1300
About LLY
Eli Lilly and Company is a medicine company, which discovers, develops, manufactures, markets, and sells pharmaceutical products worldwide. Its cardiometabolic health products include Basaglar; Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, and others; Humulin, Humulin 70/30, and others; Jardiance; Mounjaro; Trulicity; Zepbound; VERVE-102; VERVE-201, and VERVE-301. Its oncology products include Cyramza, Erbitux, Tyvyt, and Verzenio. Its immunology products include Ebglyss, Olumiant, Omvoh, and Taltz. Its neuroscience products include Emgality and Kisunla. The Company is also engaged in radiopharmaceutical discovery, development, and manufacturing efforts, and clinical and pre-clinical radioligand therapies in development for the treatment of cancer. It is also developing an oral small molecule inhibitor of a4b7 integrin for inflammatory bowel disease (IBD). It is evaluating its novel gene therapy candidate, ixoberogene soroparvovec.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
