ARK Genomic Revolution ETF Bets on AI-Powered Drug Discovery Firm Recursion Pharmaceuticals

Recursion Pharmaceuticals, a biotech company utilizing AI to speed up the drug discovery process, has caught the attention of Cathie Wood and her team at Ark Invest, who have repeatedly added shares of the company to the ARK Genomic Revolution ETF. With a portfolio weight of 5.7%, Recursion is the third-largest holding in the fund. The company’s innovative approach involves using AI to test how clinical compounds interact with the human body in an automated laboratory, allowing for more accurate predictions about which compounds are most promising for clinical trials. While still in the clinical stage, Recursion has garnered partnerships with major industry players like Roche, and data readouts from ongoing studies are expected by the end of the year. Investors should exercise caution due to the high volatility of shares and the fact that results from ongoing studies are at least two years away from launch. Nevertheless, the company’s potential as a disruptor in the drug discovery space makes it an intriguing investment option for aggressive investors.