The drug development process is often cost-intensive and complex, but one portfolio manager sees opportunities in the industry for companies leveraging AI in the development process. 

Speaking with BNN Bloomberg’s Andrew Bell on Monday, Eden Rahim, a portfolio manager and options strategist at Next Edge Capital, said drugs fail for many reasons. 

“The problem in developing drugs [is] it's long, it's very complex, [there are] substantial hurdles to overcome both clinical and regulatory wise,” Rahim said. 

However, companies can leverage AI for things like data collection, he said. 

“The ability to scrub through thousands and thousands of very dense opaque scientific papers to try and find relationships, targets, indications, things like that, AI is ideally suited to that,” Rahim said. 

Within the AI pharmaceutical industry, Rahim said he likes Absci (ABSI), Exscientia (EXAI) and Cognetivity Neurosciences (CGN). 

Rahim and his family members do not own any of the above securities. The Next Edge biotech fund holds positions in all three of the above securities. 

Check out the full video at the top of the article to learn more.