Direxion S&P Biotech Bull 3X ETF (LABU)

[farooq]

Sharing some views from a very talented trader, "my pure off-the-wall speculation is that biotech is one of the biggest users of data models, by modeling drug molecules and using software to try and figure out how the molecule will react in the body. a drug has to pass this test before it goes to mice trials. In the future a lot of this work could likely take place by AI. Biotech is very capital intensive and has a high failure rate. It's very likely that AI could take the place of a bunch of scientists at biotech companies and increase the success rate. Something like 90-95% of drugs that go to trial fail to get out of trials. Trials are very expensive. If AI could cut out many drugs that would fail in trials and increase the "win" rate to even 25%, it would be an enormous profit windfall for companies that survive in the industry. Biotech is one of the industries most at risk of a very large disruption by AI, while also benefiting from it (by those who survive). This is a big leap of future analysis off one earnings report, I know. But we all know reports can be used as liquidity events to set up the future "