Morgan Stanley analysts Sean Laaman and Maxwell Skor identified three key areas in biotechnology with potential for investors: Alzheimer’s treatments, gene editing, and artificial intelligence. The report was released during the bank’s annual Global Healthcare Conference held in New York.
The bank estimates the Alzheimer’s drug market at $70 billion. Beyond pharmaceutical companies, the report highlights potential economic value in delaying nursing home admissions by 12 to 18 months, which could impact diagnostics, insurance, and care delivery sectors.
In the field of gene editing, the bank forecasts an in-vivo market reaching $10 billion by 2035, surpassing the consensus estimate of $6 billion. New data expected over the next 18 months will likely influence how investors value these gene-editing platforms.
Regarding artificial intelligence, analysts suggest AI could reduce drug discovery timelines from 4.5 years to 1.5 years and cut research costs by 25% to 60%. However, the bank currently favors AI infrastructure providers over drug developers due to more predictable revenue streams.
Market volatility remains a factor, as clinical trial results continue to influence share prices. Additionally, strategist Mike Wilson warned in mid-September that a spike in oil prices could potentially drain market liquidity within a 30-day window.
