Evogene (EVGN) is enjoying today’s trading with the stock shooting up 100%. Evogene, an Israeli biotechnology company specializing in the development of products for life science markets through the use of a unique computational predictive biology platform, has announced the completion of version 1.0 of its generative AI foundation model for small molecule design. The model was developed in-house and trained on Google Cloud’s (GOOG) AI infrastructure. It’s the latest upgrade to Evogene’s ChemPass AI platform, which is used to discover and optimize new small molecules for the pharmaceutical and agriculture industries.
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What Is the AI Foundation Model
The AI model was trained on a large dataset of 38 billion molecular structures. It delivers around 90% precision in generating novel, high-quality molecules, compared to about 29% for traditional GPT-based AI models. According to the company, the model can evaluate multiple product criteria simultaneously, rather than doing so in a step-by-step process, including potency, safety, and patentability. This enables faster screening and more effective targeting of candidates who are both effective and IP-ready.
The tool is expected to help in the development of new drug candidates and crop protection solutions. In pharmaceuticals, it could reduce costly failures in later-stage development. In agriculture, it may support the creation of more sustainable and effective agrochemicals. Both sectors face rising R&D costs and stricter regulatory demands, and AI tools like this aim to accelerate and streamline the discovery process.
The model runs on Google Cloud’s Vertex AI platform and makes use of high-performance GPUs and scalable compute. This partnership allows Evogene to handle the significant computational demands of generative AI without building its own infrastructure. Development is already underway on version 2.0 of the model. While the company is still in the early stages of monetization, developments like this could open the door for licensing deals or strategic partnerships.
EVGN’s Next Goal
EVGN is up a modest 2.67% year-to-date, but the real upgrade could stem from successfully converting its technical progress into commercial success. For now, this AI foundation model adds a new layer to the company’s platform and may enhance its positioning in the small-molecule discovery market. So, potential investors may want to watch this one.
Is Evogene a Good Stock to Buy?
Based on two analysts, Evogene boasts a Moderate Buy rating, with an average EVGN stock price target of $3.50. This implies an 82.29% upside.
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