An important though often overlooked trait of disruptive technologies is that many often intersect with each other. The healthcare sector is an epicenter of that intersection. The ARK Innovation ETF (NYSEArca: ARKK) and the ARK Genomic Revolution Multi-Sector Fund (CBOE: ARKG) are avenues for tapping into that intersection.
Notably, ARKK provides robust exposure to the booming artificial intelligence (AI) market while ARKG is the leader among genomics ETFs. As some recent studies suggest, AI and genomics are linked, perhaps more so than many investors realize.
“Artificial intelligence can make drug discovery and development faster and less risky according to an industry expert, who said understanding complex diseases at the genetic level is now a possibility,” reports PM Live. “Data has always been key to drug development. Pharmaceutical products are approved based on empirical evidence of safety and efficacy that is generated in preclinical experiments and clinical trials.”
ARKG includes companies that merge healthcare with technology and capitalize on the revolution in genomic sequencing. These companies try to better understand how biological information is collected, processed, and applied by reducing guesswork and enhancing precision; restructuring health care, agriculture, pharmaceuticals, and enhancing our quality of life.
Meeting in an Important Place
AI is expected to play an increasingly vital role in healthcare innovation in the years ahead.
“But artificial intelligence can do more than just find targets, according to Dr. Steve Gardner from Precisionlife, who said a wider, ‘multi-omic’ approach aligned with modern R&D principles can help elucidate the complex genetics underlying diseases,” according to PM Live.
AI’s utility in the healthcare arena is already on display as it’s being deployed in the fight against COVID-19. A team in Boston Children’s Hospital is implementing machine learning to sift through copious amounts of online news, including social posts, news reports, data from official public health channels, and information supplied by doctors to track the coronavirus.
Boding well for the ARKK/ARKG combination is that AI and genomics are lucrative markets and on their own, offer obvious potential, but when combined, the opportunity set is magnified.
“The potential of the combined omics/AI is clear. But how readily the pharmaceutical industry will adopt the approach for drug discovery is a topic of debate,” according to PM Live. “At present drug discovery relies on established screening methods where the target or a candidate molecule is the focus. Convincing drug firms to switch to a sophisticated, data analytics based screening approach is likely to take time.”
For more on disruptive technologies, visit our Disruptive Technology Channel.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.