The Compound
Curing Diseases with AI
10/29/2025, 3:36:30 PM
Economic Summary
- Major pharma firms prefer lower-cost, higher-probability targets, leaving high-cost diseases like ALS and Parkinson's underinvested and creating opportunity for disruptors.
- Thermo Fisher (TMO) is engaging with an AI partner ('Sam') to apply gene sequencing to hard diseases; success could shift R&D spending toward sequencing services and boost TMO revenue.
- The core barrier is economic incentives: startups or AI-focused backers willing to fund expensive, long-shot projects may reallocate capital away from traditional pharma strategies and reshape drug discovery priorities.
Bullish
- TMO partnering with AI could unlock gene-sequencing-driven drug discovery.
- AI-driven pursuit of hard diseases opens large, underserved markets.
- Sam's fundraising and commitment accelerates R&D investment into ambitious projects.
Bearish
- Drug companies avoid pursuing expensive, difficult diseases like ALS and Parkinson's due to high costs and low near-term returns.
- High development costs and long timelines could prevent AI + sequencing projects from producing viable, commercial treatments.
- Pharma skepticism and unwillingness to take risks may block partnerships or slow adoption of new AI-driven drug discovery approaches.
Bullish tickers
TMO
TMO
Bullish
Collaboration with an AI-focused partner to tackle ALS and Parkinson's using gene sequencing could open new markets and drive demand for Thermo Fisher's services.
Bearish
Pharma skepticism, long R&D timelines, and high development costs could limit near-term commercial returns from gene-sequencing projects.
People mentioned
Mark CasperSam AltmanGreg BrockmanSteve Jobs