In this article, we will take a look at the 5 Best AI Drug Discovery Stocks Hedge Funds Are Loading Up On. For a deeper discussion and an extended list, please see the 12 Best AI Drug Discovery Stocks Hedge Funds Are Loading Up On.
5. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)
Number of Hedge Fund Holders: 54
On June 10, GENESIS Pharma said it expanded its commercial partnership with Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) to include Denmark, Finland, Norway, and Sweden. It extension of a collaboration that began in Southeast Europe in 2019. It added marketing rights for RNAi therapies targeting cardiomyopathy and rare genetic diseases across the broader region. The company said the agreement now covers 17 markets and builds on an existing footprint across Greece, Romania, and other Southeast European countries. It plans to improve access in areas with unmet medical needs.
Separately, on June 3, Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) said it formed a strategic artificial intelligence partnership with Inceptive Nucleics. The collaboration is valued at up to $2 billion, including $30 million upfront, merging its RNAi platform with Inceptive’s models to speed up drug discovery. CEO Yvonne Greenstreet said the partnership plans to “push the boundaries” of RNAi innovation, while Inceptive CEO Jakob Uszkoreit said the alliance could replace trial-and-error drug design with AI-powered approaches.
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) is a biopharmaceutical company that works in developing and marketing novel therapeutics based on ribonucleic acid interference.
4. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Holders: 55
Novo Nordisk A/S (NYSE:NVO) is among the Best Pharmaceutical Stocks.
On June 19, Novo Nordisk A/S (NYSE:NVO)’s primary owner, the Novo Nordisk Foundation, reported that it is launching research incubators across Europe to speed up obesity and diabetes drug development. The foundation said it is funding a pan-European program targeting cardiometabolic diseases. It will commit up to DKK 450 million (EUR 60.2 million) over six years, opening its first lab in London this month, followed by sites in Italy and Germany.
Novo Nordisk Foundation’s CEO Mads Krogsgaard Thomsen said the effort plans to convert “extraordinary science” into drug discovery projects, addressing a gap where academic breakthroughs fail to reach patients. Professor Graham Cooke of Imperial College London said many discoveries lack support to progress commercially and that London’s selection is a reflection of its strong ecosystem.
The foundation said the BioInnovation Institute will lead the initiative. Its CEO, Jens Nielsen, commented that its scale “supports research and innovation that can benefit patients and society.”
Novo Nordisk A/S (NYSE:NVO) is a global healthcare company. It works in the discovery, development, manufacturing, and marketing of pharmaceutical products. It functions through the Diabetes and Obesity Care and Rare Disease segments.
3. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 83
Bristol-Myers Squibb Company (NYSE:BMY) is among the Best Pharmaceutical Stocks.
On June 2, Bristol-Myers Squibb Company (NYSE:BMY) and SystImmune announced that SystImmune’s parent company, Sichuan Biokin Pharmaceutical, reported interim Phase 3 data. It showed that izalontamab brengitecan had statistically significant progress in overall survival and progression-free survival in advanced triple-negative breast cancer and esophageal squamous cell carcinoma. Presenting the results at the 2026 American Society of Clinical Oncology meeting, in TNBC, Iza-bren delivered a median overall survival of 15.9 months as compared to 12.5 months and progression-free survival of 8.5 months versus 3.1 months. It improved the confirmed objective response rate to 51.7% versus 20.5% compared with the physician’s choice of chemotherapy.
In esophageal cancer, SystImmune said iza-bren posted a median overall survival of 9.8 months compared to 7.2 months and progression-free survival of 4.2 months versus 2.0 months. It raised the objective response rate to 35.3% from 13.1%. The companies said safety remained manageable, with predominantly hematologic adverse events and low interstitial lung disease rates.
Bristol-Myers Squibb Company (NYSE:BMY) is involved in the discovery, development, licensing, manufacturing, marketing, distribution, and sale of biopharmaceutical products.
2. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 83
On May 20, 2026, Pfizer Inc. (NYSE:PFE) CEO Albert Bourla said on “In Good Company” that pandemic-era urgency allowed an eight-month COVID vaccine timeline. He said that regulators and governments “reverted to more conservative” approaches afterward. There was a sharp reversal, with COVID revenue falling from $56 billion in 2022 to about $6 billion more recently. Bourla described the swing as damaging to internal confidence while crediting a “resilience culture” for recovery.
Bourla said the company invested over $80 billion in acquisitions, including a roughly $40+ billion Seagen deal. He called its antibody drug conjugates a precision cancer-targeting platform with 4 marketed drugs and 13 in development.
Turning to competition, he warned China could surpass the US in early-stage drug discovery within one to two years with faster speed and lower costs.
On strategy, Bourla said Pfizer Inc. (NYSE:PFE) rearranged R&D to improve focus while stressing culture over strategy, stating it “lifts the performance of an entire organization.”
Pfizer Inc. (NYSE:PFE) is a research-based global biopharmaceutical company that discovers, develops, manufactures, markets, sells, and distributes biopharmaceutical products worldwide.
1. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 132
Eli Lilly and Company (NYSE:LLY) is among the Best Pharmaceutical Stocks.
On June 5, Eli Lilly and Company (NYSE:LLY) CEO David Ricks said on The Prof G Pod that GLP-1 drugs “will turn out to be a more transformative technology than artificial intelligence.” He called artificial intelligence “overhyped” and GLP-1s “underhyped,” according to the interview.
Ricks said GLP-1 drugs “work almost universally,” with most users losing weight and reporting positive experiences, unlike many chronic treatments where patients “feel worse or poorer without feeling better.”
He described obesity as a “nodal” condition with over 200 diseases. He also commented that US chronic diseases account for 80% of healthcare costs, and roughly $1.4 trillion annually relates to obesity.
Ricks said lower pricing increases demand since Zepbound fell 60% since its launch, calling it “price-elastic.” He stated that Medicare access at $50 monthly starting July 1 could expand reach.
On AI, Ricks said drug discovery needs “new knowledge.” Lilly tested roughly 700 molecule versions to develop tirzepatide.
Eli Lilly and Company (NYSE:LLY) works in the discovery, development, manufacture, and sale of pharmaceutical products. The company’s products include diabetes, oncology, immunology, neuroscience, and other products and therapies.
While we acknowledge the potential of LLY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LLY and that has 100x upside potential, check out our report about the cheapest AI stock.
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