Citrini is optimistic about the new trend in the US medical sector and updates the "basket of shovel-sellers": AI benefits combined with cyclical improvement, clearer signals of recovery.

Independent research institution Citrini Research, which quickly gained attention with its "thought experiment" report titled "The Global Intelligence Crisis of 2028," recently updated its healthcare investment portfolio. The reason for the update is the company's growing optimism towards the revival of the life sciences, bioprocessing, and healthcare infrastructure sectors. This revival is being driven by both cyclical improvements and the support of AI-related positive factors. The complete stock list covered by Citrini includes Bristol-Myers Squibb (BMY.US), Agilent Technologies, Inc. (A.US), LabCorp (LH.US), Thermo Fisher Scientific (TMO.US), IQVIA Holdings Inc (IQV.US), Merck & Co., Inc. (MRK.US), Danaher Corporation (DHR.US), Charles River Laboratories International, Inc. (CRL.US), Bruker Corporation (BRKR.US), Repligen Corporation (RGEN.US), Regeneron Pharmaceuticals, Inc. (REGN.US), Becton, Dickinson and Company (BDX.US), Avantor, Inc. (AVTR.US), Abbott Laboratories (ABT.US), Medpace Holdings, Inc. (MEDP.US), Bio-Techne Corporation (TECH.US) and Castle Biosciences, Inc. (CSTL.US). The updated investment portfolio covers pharmaceutical companies, diagnostic firms, contract research organizations, and life science tool suppliers. Citrini believes that these companies are poised to benefit from trends such as the revival of biotechnology financing, increased M&A activity in the pharmaceutical sector, and the accelerated application of AI in drug development. This portfolio reflects Citrini's preference for a "shovel-selling" strategy in the healthcare ecosystem, rather than more speculative, AI-driven biotech stocks. The institution believes that companies providing bioprocessing equipment, diagnostic services, production infrastructure, and clinical trial services may benefit regardless of whether innovative drug projects developed with the help of AI ultimately succeed commercially. Several companies in the portfolio have shown signs of operational improvement. Citrini previously noted that orders for bioprocessing equipment under Danaher Corporation's Cytiva division grew by over 30% year-on-year in the first quarter of 2026, and Repligen has achieved double-digit revenue growth for three consecutive quarters. The report also mentions that as the patent cliff looms, the demand for mergers and acquisitions among pharmaceutical companies is increasing. The cumulative value of biotech transactions announced in the first quarter of 2026 has already exceeded the total for the entire year of 2024.