Is This Low-Profile Artificial Intelligence (AI) Stock Worth Buying?

Artificial intelligence (AI) will revolutionize the way many companies do business. It may even fundamentally change entire industries. Choosing the companies that drive these changes could pay huge dividends down the road - both in a literal and figurative sense.

While many well-known companies are trying to jump on the bandwagon, let's take a look at a relatively small, little-known company:Recursion Pharmaceuticals (NASDAQ resonance code: RXRX). This mid-cap biotech company has a lot of ideas, but is its stock worth buying?

Revolutionizing the drug development process

Developing and marketing new drugs is an agonizingly slow process. And the risks are high; most human trials are never approved by regulatory authorities. Meanwhile, thousands of patients have suffered and even died while waiting for a drug to relieve their pain, and Recursion wants to change that. The company uses an artificially intelligent operating system (OS) to test how millions of clinical carbs interact with humans to potentially treat a variety of diseases.

Our goal is not just to speed up the discovery process. The biotech company wants to maximize the chances that, once it has identified a promising new chemical using an AI-enabled approach, the probability of that new molecule actually making it through the arduous clinical and regulatory process will be much higher than average.

If Recursion Pharmaceuticals can do this, the company will spend less than its competitors and get its products to market faster, thus profiting from patent exclusivity for a longer period of time. The company could also license its AI platform to other drugmakers, and get a big payday. In other words, Recursion Pharmaceuticals' future earnings prospects are incredible.

The company has attracted the attention of some of the biggest names in the pharmaceutical industry. It is in partnership withRoche(math.) andBayer (name)(Bayer) to discover and develop therapies in the fields of oncology and neuroscience.

It's too early to bet on this stock.

Generally speaking, clinical biotech companies are at risk. Recursion may have one big selling point over its peers - its artificial intelligence operating system, which could fundamentally change the way drugs are developed - but what results has the company's approach produced so far? But what has the company's approach yielded so far?Recursion currently has five projects underway in second-stage research.

The company claims to have more than a dozen candidates in the early discovery stage, but for our purposes, it is unlikely that we will be able to do much with this information, and Recursion Pharmaceuticals expects to have a number of data on its most advanced candidates in the next year. If the company can provide positive data, we'll be able to learn more about its prospects. It's also worth noting that Recursion's platform could benefit from a web-based approach.

Whether the results of the clinical trials are positive or negative, it will help to fine-tune its operating system and (hopefully) become more accurate in identifying promising clinical carbs. All that said, Recursion Pharmaceuticals remains a speculative stock, even with its AI-enabled operating system. There's no guarantee that the biotech's approach will fulfill its promise. We'll know that only when we see a series of positive clinical and monitoring developments.

Thankfully, the company should have sufficient funding to support its operations, at least for a while, thanks to the郃 partnership. The next 12 months will be critical for Recursion Pharmaceuticals. If the company's second-stage studies are strong and at least one of its drug candidates enters late-stage research, it could become an even more attractive stock.

Until then, investors should remain on the sidelines.

Should you invest $1,000 in Recursion Pharmaceuticals now?

Consider this before buying shares of Recursion Pharmaceuticals:

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Prosper Junior Bakiny does not own any of the shares listed above.The Motley Fool recommends Roche Ag.The Motley Fool has a disclosure policy.

Is This Low-Profile Artificial Intelligence (AI) Stock Worth Buying? This post was originally published by The Motley Fool.