What happened
For a company operating in an area of great investor interest, even a mild quarterly earnings beat can really juice its stock price. That was the dynamic behind artificial intelligence (AI)-powered healthcare-solutions provider Exscientia's (EXAI +0.00%) more than 6% leap in share price on Wednesday. That made the stock quite an outlier, as the S&P 500 index slipped by 0.7% on the day.
So what
Exscientia, which harnesses AI in the discovery and development of pharmaceuticals, published its first-quarter results well before market open. The U.K.-based company earned $7.1 million in revenue for the period. While this was down notably from the $8.6 million it booked in the same quarter of 2022, it exceeded the average analyst projection of nearly $6.3 million.
As for the bottom line, Exscientia's net loss deepened considerably. It was $46.6 million for the quarter, or $0.38 per share, compared to the year-ago deficit of $19.1 million. Again, though, prognosticators following the stock were expecting worse -- specifically, an $0.40 per-share loss, on average.
The company provided a business update within its earnings release. It touted the progress it's making in the laboratory, quoting founder and CEO Andrew Hopkins as saying that, "With our sixth AI-designed compound reaching the clinical development stage plus two more in active IND/CTA-enabling studies, Exscientia's pipeline of wholly owned and partnered drug candidates is progressing rapidly."
NASDAQ: EXAI
Key Data Points
Now what
Exscientia's focus is on oncology, and it reported that earlier this month, it dosed its first patient in a phase 1/2 clinical trial of EXS21546. This is an experimental drug that targets relapsed/refractory renal cell carcinoma and non-small cell lung cancer.
The U.K. company is clearly showing progress. Also, as it uses AI in a meaningful way to develop its medications while focusing on the ever-hot segment of oncology, it should continue to be a stock to watch for biotech investors.
