As a part of President Trump’s efforts to revitalize domestic industries, when the One Big Beautiful Bill Act (OBBBA) was signed into law in early July, it restored the 100% deduction of R&D expenses. The law also applies this deduction retroactively over the past three years.
Considering that biotech companies typically pour between 15% and 50% of capital into R&D, this provision alone reduces their short- to mid-term financial pressure. Moreover, OBBBA expanded accelerated deductions for capex, aimed at reducing US dependency on China’s pharmaceutical ingredients.
These measures align seamlessly with the growing role of AI in life sciences to streamline biotech techniques, such as genetic engineering via CRISPR or engineered CAR-T cells. On a broader scale, AI enables high-fidelity simulation of cell models, from which researchers can gain new insights into the intricate workings of biological processes.
Case in point, David Baker, Demis Hassabis and John Jumper won the 2024 Nobel Prize in Chemistry for using machine learning to design entirely new proteins, as the AI accurately predicted 3D protein folding from their amino-acid sequences.
Notwithstanding lingering AI confabulation issues, AI is at its best when discerning patterns from constrained datasets – precisely the type of data generated in genomics, proteomics and drug-discovery pipelines. With that in mind, which biotech companies are best positioned to capitalize on AI-driven advances?
BioAge Labs Inc. (NASDAQ: BIOA)
Of all life science sectors, anti-aging has the most expectations/hopes to deliver results. Venture capitalist Bryan Johnson popularized this effort with his data-driven approach to slow or reverse biological aging. Following its public debut last September, Californian BioAge Labs is focusing on metabolic drivers of aging as a clinical-stage company.
To determine all the factors involved in metabolic aging, the firm is using machine learning to filter long-term data from health records. For the purpose of generating as precise data as possible, BioAge tapped into Norwegian diagnostics firm Age Labs AS this June, and the biorepository HUNT Biobank.
The HUNT Biobank is the perfect complement to our aging-focused discovery platform.
BioAge co-founder and COO Eric Morgen
In addition to this preclinical initiative, BioAge is focusing on NLRP3 inhibitors and APJ agonists to treat metabolic disorders. By H2 2026, the company should complete its Phase 1 study to evaluate the effectiveness of BGE-102 (NLRP3 inhibitor) and proceed with a proof-of-concept clinical trial.
During 2026, the work on apelin receptor (APJ) agonist should also advance to promote greatly more effective weight loss by amplifying GLP-1-based obesity medications used by companies like Novo Nordisk (Ozempic) and Eli Lilly (Zepbound).
Against $27.6 million in total liabilities, BioAge had $295.9 million in cash as of Q3 2025, ending September 30. Year-to-date, BIOA stock is up 43%, presently priced at $7.93 per share, not far off from its average price target of $9.67, according to the Wall Street Journal.
Neumora Therapeutics Inc. (NASDAQ: NMRA)
Based in Massachusetts, Neumora Therapeutics is another clinical-stage biotech firm, focusing its efforts on treating brain diseases such as elusive schizophrenia. Additionally, the company is exploring its own take on the aforementioned NLRP3 inhibitor (NMRA-215) as it showed great promise in weight loss in mice.
Similar to BioAge, Neumore is developing its own longitudinal “precision-neuroscience” platform to leverage AI as it sifts through genomics data, clinical records, various imaging, EEG and other data to deliver “Data Biopsy Signatures” for potential drug pipelines. To further that goal, the company partnered with Icelandic deCODE Genetics, as the leading company in analysing the human genome under the Amgen (NASDAQ: AMGN) umbrella.
Neumora’s NMRA-215 clinical stage should start in Q1 2026, delivering human proof-of-concept data. Additionally, the company is running Phase 1b study on NMRA-511 to treat Alzheimer’s disease and Phase 3 Navacaprant study to treat major depressive disorder (MDD).
Against $45.67 million in total liabilities, Neumora had $171.5 million in cash as of Q3 2025. Year-to-date, NMRA stock is up 37%, currently priced at $2.71 per share. WSJ’s forecasting data is particularly favorable, projecting an average price target of $8.67, with even the low-end of $3 above the present price range.
Relay Therapeutics Inc. (NASDAQ: RLAY)
Another Massachusetts-based clinical-stage company, Relay Therapeutics developed an AI-powered Dynamo platform to simulate proteins’ behavior and identify novel binding mechanisms. Once its machine-learning models identify promising chemical starting points for drug discovery, the company can properly design a development candidate.
In short, Relay combines computational prediction with experimental validation, such as cryo-electron microscopy and X-ray crystallography to create a more reliable, focused pipeline. So far, the company is exploring disorders in oncology with a mutant-selective inhibitor for PI3Kα (RLY-2608), alongside FGFR2 inhibitor (RLY-4008) for metastatic solid tumors.
Also in the cancer department, Relay is investigating CDK2 inhibitor to tackle cell cycle dysregulation. Likewise, the firm’s ERα degrader program aims to tackle hormone-driven cancers.
As of Q3 2025, the company has $62.29 million in total liabilities against $596.43 million in cash. Year-to-date, RLAY stock is up 54%, currently priced at $6.61 per share. WSJ’s average RLAY price target is double that, at $13.56, while the low-end forecast is closely aligned with the present price range at $6 per share, making for another optimal entry.