UPDATED Apr 25, 2024
Artificial intelligence is transforming most industries in one way or another - but perhaps the biggest impact could be on the healthcare industry.
Here are just a few examples of the way AI can be used to improve healthcare:
The recent COVID-19 pandemic and the subsequent shortage of healthcare workers has shown us how important it is to have adequate health care infrastructure. As the population continues to grow and as it grows older, we’ll be leaning on the healthcare sector more heavily and so AI in healthcare may not be a nice-to-have, it may be a necessity.
The AI led healthcare revolution is already well underway, and most companies are using artificial intelligence in one way or another. This list includes the companies that are really leveraging the power of big data, machine learning, and neural networks, to transform the industry.
It’s worth mentioning that most of the big technology companies are also building AI powered solutions for the healthcare industry. The list includes Microsoft, Nvidia, IBM, Oracle and Alphabet. However, for this collection we have focussed specifically on healthcare companies.
10 companies
Medtronic plc develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients worldwide.
Integrating AI into the treatment of chronic neurological and cardiovascular conditions.
Trading at 20.8% below our estimate of its fair value
Earnings are forecast to grow 10.26% per year
No risks detected for MDT from our risks checks.
Illumina, Inc. offers sequencing- and array-based solutions for genetic and genomic analysis in the United States, Singapore, the United Kingdom, and internationally.
Utilising AI in the diagnosis of cancer.
Trading at 16.2% below our estimate of its fair value
Earnings are forecast to grow 67.01% per year
No risks detected for ILMN from our risks checks.
Lantheus Holdings, Inc. develops, manufactures, and commercializes diagnostic and therapeutic products that assist clinicians in the diagnosis and treatment of heart, cancer, and other diseases worldwide.
Using machine learning to improve treatment decisions in cancer patients.
Price-To-Earnings ratio (13.7x) is below the US market (16.7x)
Earnings are forecast to grow 14.22% per year
Earnings grew by 1063.9% over the past year
No risks detected for LNTH from our risks checks.
AI-powered surgical navigation platform providing surgeons with real-time feedback.
Earnings are forecast to grow 12.72% per year
Earnings grew by 34.2% over the past year
Significant insider selling over the past 3 months
Has a high level of debt
Intuitive Surgical, Inc. develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality of and access to minimally invasive care in the United States and internationally.
AI-Powered robotic systems are revolutionizing minimally invasive surgery
Earnings are forecast to grow 11.55% per year
Earnings grew by 51.5% over the past year
No risks detected for ISRG from our risks checks.
AstraZeneca PLC, a biopharmaceutical company, focuses on the discovery, development, manufacture, and commercialization of prescription medicines.
Trading at 33.9% below our estimate of its fair value
Earnings are forecast to grow 16.48% per year
Earnings grew by 34.6% over the past year
Large one-off items impacting financial results
Has a high level of debt
UiPath Inc. provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally.
AI company automating administrative processes in the healthcare sector.
Earnings are forecast to grow 72.05% per year
Earnings have grown 21.1% per year over the past 5 years
Shareholders have been diluted in the past year
CRISPR Therapeutics AG, a gene editing company, focuses on developing gene-based medicines for serious human diseases using its Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR)/CRISPR-associated protein 9 (Cas9) platform.
Leaning on AI to assist with identifying and editing specific sequences in the human genome.
Trading at 22.6% below our estimate of its fair value
Revenue is forecast to grow 37.62% per year
Shareholders have been diluted in the past year
Currently unprofitable and not forecast to become profitable over the next 3 years
Veeva Systems Inc. provides cloud-based software for the life sciences industry.
Automating the clinical trial process with machine learning.
Trading at 32.7% below our estimate of its fair value
Earnings are forecast to grow 16.64% per year
Earnings have grown 14.9% per year over the past 5 years
No risks detected for VEEV from our risks checks.
Butterfly Network, Inc. develops, manufactures, and commercializes ultrasound imaging solutions in the United States and internationally.
Using AI to conduct medical image analysis.
Revenue is forecast to grow 15.82% per year
Shareholders have been diluted in the past year
Significant insider selling over the past 3 months
Volatile share price over the past 3 months
Currently unprofitable and not forecast to become profitable over the next 3 years
Simply Wall St analyst Richard Bowman and Simply Wall St have no position in any of the companies mentioned.