Charles River Laboraties International, Inc. ( CRL Quick Quote CRL - Free Report) recently inked a strategic deal that gives Aitia access to Logica — Charles River's Artificial Intelligence (AI)-powered drug solution platform. The partnership will enable the optimization of the discovery and early development of multiple therapeutic programs for neurodegenerative disease and oncology. Logica, an Integrated AI Program
Launched in 2022, Logica is an AI-powered drug solution that directly translates clients’ biological insights into optimized preclinical assets. The platform leverages Valo’s AI-powered Opal Computational Platform and Charles River’s leading preclinical expertise, providing clients with transformed drug discovery with a single integrated offering seamlessly translating targets into candidate nominations.
Logica reduces whitespace and produces findings quickly by integrating large-scale computing power, skilled drug searchers and laboratory equipment.
More on Collaboration
Per the terms of the agreement, Aitia will use Logica across their portfolio of novel drug targets in an effort to develop and advance drug candidates for cancers, such as multiple myeloma and prostate cancer as well as neurological indications, such as Alzheimer's, Parkinson's and Huntington's diseases.
Charles River and Aitia have also agreed to collaborate on the creation of a patient-derived xenograft (PDX) Digital Twin to predict the best tumor models for in vivo oncology research. To build PDX Digital Twins in many cancer types, the cooperation will combine Charles River's comprehensive, fully characterized, disease-relevant PDX data and expertise with Aitia's industry-leading Digital Twin technology. CRL has made an equity investment in Aitia as part of the cooperation.
Unraveling the complex genetic and molecular circuitry of neurodegenerative disorders is critical to the discovery of treatments that significantly slow or reverse these devastating diseases. Combined with the advantages of Logica, Charles River collaboration positions Aitia to translate its discoveries into novel drug candidates rapidly.
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The integration of Aitia's Digital Twins with Logica's cutting-edge solution has the potential to revolutionize the exploration and creation of innovative treatments for neurological disorders and cancer. The field of research on Huntington's, Parkinson's and Alzheimer's disease has advanced slowly in recent years, Charles River is enthusiastic about the potential benefits that patients may receive from this combined AI approach.
Industry Prospects Per a report by Grand View Research, the global artificial intelligence in drug discovery market size was valued at $1.1 billion in 2022 and is expected to see a CAGR of 29.6% from 2023 to 2030. The growing demand for the discovery and development of novel drug therapies and increasing manufacturing capacities of the life science industry are driving the demand for artificial intelligence (AI)-empowered solutions in the drug discovery processes. Recent Developments
In September 2023, Charles River entered into a multi-program collaboration agreement with Related Sciences, a data science-driven drug discovery firm. Through this partnership, Logica — the combined offering of Charles River and Valo Health — will be applied across several previously undrugged targets in Related Sciences’ portfolio.
Earlier in 2023, the company entered into a multi-program agreement with Pioneering Medicines — a strategic initiative of Flagship Pioneering — via which Pioneering Medicines will deploy Logica’s uniquely integrated AI platform across a portfolio of targets to create optimized small molecules that lead to novel therapies for unmet medical needs.
In the past six months, Charles River’s shares have declined 11.6% compared with the
industry’s fall of 9.6%. Zacks Rank and Key Picks
Charles River carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are
Abbott Laboratories ( ABT Quick Quote ABT - Free Report) , DexCom, Inc. ( DXCM Quick Quote DXCM - Free Report) and Integer Holdings Corporation ( ITGR Quick Quote ITGR - Free Report) .
Abbott, carrying a Zacks Rank of 2 (Buy), reported adjusted EPS of $1.14 in third-quarter 2023, beating the Zacks Consensus Estimate by 3.6%. Revenues of $10.14 billion outpaced the consensus mark by 3.6%. You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 6.8%.
DexCom reported adjusted EPS of 50 cents in third-quarter 2023, beating the Zacks Consensus Estimate by 47.1%. Revenues of $975 million surpassed the Zacks Consensus Estimate by 4%. It currently carries a Zacks Rank #2.
DexCom has a long-term estimated growth rate of 33.6%. DXCM’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 36.4%.
Integer Holdings reported adjusted EPS of $1.27 in third-quarter 2023, beating the Zacks Consensus Estimate by 20.9%. Revenues of $404.7 million surpassed the Zacks Consensus Estimate by 8.7%. It currently carries a Zacks Rank #2.
Integer Holdings has a long-term estimated growth rate of 15.8%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 11.9%.