Artificial intelligence could be a huge benefit for the health care space, says Fred Hassan. He’s chairman of the Caret Group.
What parts of health care could benefit from AI?
Hassan expects AI to help boost productivity across the board in the health sector – be it drug discovery, clinical trials, or patient management.
Infectious diseases and oncology in particular will benefit from artificial intelligence in the near term, he told CNBC in a recent interview.
Chairman Hassan forecasts AI to be a positive for GLP-1s (weight-loss drugs) as well.
Last week, Sanofi partnered with OpenAI to deploy artificial intelligence for drug development as Invezz reported here. Its stock, nonetheless, is trading at about the same price at which it started 2024.
AI could boost pharma profits by $250 billion
Fred Hassan is bullish on artificial intelligence for health care as it could help bring more “personalised/customised medicines” to patients.
All in all, he’s constructive as “innovation pays for the innovator but it also helps the society”.
Note that AI could boost profits for the global pharmaceutical companies by a whopping $250 billion by the end of the current decade, as per data from PwC.
Such a boost in profits will likely translate to a higher stock price in coming years. “XLV” or the Health Care Select Sector SPDR Fund is up roughly 5.0% for the year at writing.
The post The next big wave of AI could be in health care: Fred Hassan appeared first on Invezz