Keith Kohl’s ‘Algo Meds’ Company – The Greatest Breakthrough in Medical History?

Have you ever wondered why prescription medication costs so much?

Besides mere corporate greed, it's largely due to a drug development process that is arduous, expensive, and outdated. This is all about to change thanks to a new category of medicine Keith Kohl calls “Algo Meds” which are reducing drug development costs and one company is at the forefront of it all.

 

The Teaser

The world of pharmaceuticals is a marathon of research, trials, and regulatory hurdles that can stretch over a decade and cost billions of dollars for drug developers.

I am used to reviewing energy presentations from Keith but forgot that his ‘trading acumen' extends all the way into the highly complex biotech sector. We have previously looked at and revealed his “Black Winter” Stocks and “Infinite Lithium” Company, here at Green Bull. This teaser is something a little different.

One of my reasons, among others, for steering clear of the pharma industry is that it spends more on research and development than any other industry in the world. That's less money available to be returned to shareholders like you and me.

Consider this, on average, pharmaceutical companies spend roughly 25% of their revenue on R&D. A figure that has consistently gone up over the past few decades. This has pushed down ROI on novel drug development to an awful 1.2% – the lowest it has ever been.

What's more, this is just one statistic, here are some others that will make any rational being allergic to pharma stocks:

• 90% of drug candidates in clinical trials now fail to reach approval.
• The cost of making a single therapeutic now exceeds $2.3 billion on average.
• It now takes 10.5 years for a drug to progress through clinical trials.

Obviously, this is not sustainable.

A New Drug Development Model

All of the things I just mentioned have ignited an urgency within the pharmaceutical industry for an entirely new model.

One that will drastically increase the efficiency of discovering and developing new medical treatments.

After months of research, Keith is fully convinced that this new model of drug development is going to upend the pharma industry and launch us head first like a carnival catapult into a golden age of medicine.

This ‘groundbreaking' new model is called Algorithmic Medicine or “Algo Med” for short.

Simply put, “Algo Med” is drug discovery driven by artificial intelligence and one company has an early first-mover advantage in it.

 

The Pitch 

Keith promises to share all the details about this tiny AI drug developer with us in a straightforward investment guide called “Algo Meds: Cashing in on AI Drug Development Before It’s Too Late.”

To get the guide, we will need to take Keith's exclusive trading advisory Topline Trader for a 90-day trial run. The cost to do so is $799 for the first year, which is 60% off the regular price, with a 90-day money-back guarantee, if not completely satisfied.

The offer includes access to a model portfolio, a complete archives library, one year of market updates accessible via email or text, and a few special reports.

 

The Age of “Algo Meds” is Upon Us

A decade ago, Algorithmic Medicine didn’t even exist. Today, billions of dollars are flowing into it:

It all began using a process called “machine learning” for pharmaceutical development years before ChatGPT was ever a thing.

In 2020, the first-ever drug developed by machine learning entered human clinical trials, the first Algo Med.

Today, at least one Algo Med is on the precipice of being approved by the FDA and other AI-generated molecules are in the clinical pipeline.

So what is the secret sauce making all this possible?

Mapping Biology

For the last half-century, scientists have had to use highly complex methods like X-ray crystallography to get a clear picture of a protein, which looks like some silly string:

This process, known as solving a protein’s structure, can take years, and most of the time, it doesn’t even work.

Enter Artificial Intelligence.

See, the green silly string is what a protein actually looks like and the blue string is what AI predicted the same protein structure would like.

It’s almost a perfect match and it took just 30 minutes for the AI to accomplish this.

But it’s not just protein structures AI can model, every aspect of biochemistry can be mapped out and simulated, meaning a sped-up drug discovery process and lower costs associated with running physical labs.

All the big pharma bros – Pfizer, AstraZeneca, and Sanofi are on board and they have all announced collaborations to begin developing drugs using Algorithmic Medicine, but they are not the ones leading the development of this new wave of drugs.

Keith's “Algo Med” company could become the first to develop an AI drug in history and it is valued at less than $1 billion today.

 

Revealing Keith Kohl's “Algo Meds” Company

Here is everything we know about this new-fangled drugmaker so far:

• It is a $5 AI drug developer that is already in Phase 2 clinical trials for its first drug.
• Big names like Bill Gates, BlackRock, and Citigroup have quietly begun scooping up shares.
• It has already shown a 70% reduction in drug discovery time as well as an 80% increase in cost efficiency.

A Google search for ‘AI drug developer phase 2' led me to a piece about privately held Insilico Medicine. The next link led me to a Nature article mentioning Exscientia Plc (Nasdaq: EXAI), which I believe is Keith's “Algo Med” company. Here is why:

• Exscientia shares currently trade for just under $5 with a market cap north of $550 million.
• The Bill & Melinda Gates Foundation and Citi are among the company's largest shareholders.
• Exscientia claims the algorithms it has developed reduce the drug development time by 70%.

 

The Greatest Breakthrough in Medical History?

Admittedly, this is a clickbait headline.

But when dealing with a $21 million revenue business that has never turned a profit, carrying a valuation of nearly $600 million, hope and hype are all we have to go on.

All of Exscientia's current revenue comes from deals with larger pharma companies, like Sanofi, to use its AI-powered drug discovery platform. Meanwhile, R&D spending is a hefty $140-150 million annually. 

When it comes to its own internal pipeline of drugs, the company is still working through phase 1 and 2 testing on nearly all five of its majority-owned and co-owned therapies.

AI drug discovery may be faster and more efficient, but there is no getting around the regulatory approval process, which for better or worse takes years. Since we're dealing with the federal government here, I don't see this getting streamlined anytime soon, if ever.

Exscientia does have over $500 million in cash at the bank, so it may be able to get a drug through clinical trials without issuing more shares and diluting shareholders into oblivion. However, there is no guarantee that any of its medicines will ever get FDA approval and hit the market, which makes buying shares at this stage more akin to speculating than investing.

 

Quick Recap & Conclusion

• Keith Kohl is teasing something called “Algo Meds”, which he says are “the single greatest breakthrough in medical history” and one company is at the forefront of it.
• “Algo Med” is short for Algorithmic Medicine, which uses AI to speed up drug discovery times, lower costs, and maybe even cure cancer (their words, not mine).
• Keith promises to share all the details about a tiny AI drug developer who is the tip of the Algo Med spear in a straightforward investment guide called “Algo Meds: Cashing in on AI Drug Development Before It’s Too Late.”
• Based on the clues provided, Keith's AI drug company is Exscientia Plc (Nasdaq: EXAI).
• The only advantage Exscientia has at this point is a proprietary AI drug discovery platform, which has yet to take a single drug from conception to approval. For this and a few other reasons, the AI drug developer is too early stage for our liking.

Is AI-based algorithmic medicine the future? Let us know what you think in the comment section.