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A Life Expansion Revolution Is Coming: 3 Stocks That Could Lead the Charge

Motley Fool - Wed Jun 12, 6:30AM CDT

The human lifespan has increased dramatically since the start of the 17th century, from an average of just 30-40 years to over 70 years today. However, the next leap forward in longevity could be even more profound, driven by the transformative power of artificial intelligence (AI).

AI has the potential to revolutionize healthcare and aging research, enabling scientists to uncover groundbreaking insights into the biological processes underlying aging and age-related diseases.

A researcher working in a lab.

Image source: Getty Images.

By harnessing vast amounts of data and employing sophisticated algorithms, AI could accelerate the development of life-extending therapies and interventions, potentially adding decades or even centuries to the human lifespan. With AI already making significant inroads into healthcare, here are three top stocks poised to benefit from this impending longevity revolution.

1. Eli Lilly

Eli Lilly(NYSE: LLY) is a global pharmaceutical company focused on developing innovative treatments for various diseases, including diabetes, cancer, and Alzheimer's. The company has been investing heavily in AI to accelerate drug discovery and development.

Lilly's 2019 partnership with Atomwise, an AI-driven drug discovery company, started the company down this road in earnest. In subsequent moves, the drugmaker deepened its AI infrastructure by inking partnerships with companies such as Verge Genomics and XtalPi.

As AI continues to advance, Lilly's extensive pipeline and commitment to utilizing cutting-edge technology position it well to develop groundbreaking treatments that could significantly extend human lifespans. The downside is that Lilly's stock is expensive at 127 times trailing earnings. However, this lofty valuation is based on the drugmaker's current product line-up, not its AI drug discovery initiative.

2. Johnson & Johnson

Johnson & Johnson(NYSE: JNJ) is a diversified healthcare company with a strong presence in pharmaceuticals and medical devices. The company has been integrating AI across various aspects of its business, from drug discovery to patient care.

In 2019, J&J's Janssen Pharmaceuticals division partnered with Winterlight Labs to use AI-powered speech analysis to detect early signs of Alzheimer's disease. J&J's medical device segment also utilizes AI to develop more personalized and effective tools, such as the Monarch Platform for bronchoscopy.

As AI rapidly becomes a key feature of healthcare, J&J's diverse portfolio and commitment to innovation put it in a prime position to benefit from this trend.

3. Sanofi

Sanofi(NASDAQ: SNY) is a global biopharmaceutical company focused on developing treatments for rare diseases, vaccines, and chronic illnesses. The company has been investing in AI to streamline drug discovery, development, and manufacturing processes.

Sanofi's partnership with Exscientia, an AI-driven drug discovery company, has already led to the identification of novel drug candidates for metabolic diseases. Furthermore, Sanofi is utilizing AI to analyze vast amounts of patient data to develop more targeted and effective treatments.

The international drugmaker has been one of the first to fully embrace AI, with the stated goal of using groundbreaking tech to power most of its operations in the not-so-distant future. The outcome of this initiative is impossible to predict, but Sanofi undoubtedly deserves a look if you're on the hunt for a pharmaceutical company on the leading edge of AI and healthcare.

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George Budwell has no position in any of the stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.

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