CONTRIBUTORS
Matthew Moberg
Portfolio Manager
Franklin Equity Group
United States
Using light to power computer chips. Editing the immune system to fight brain cancer. Transforming pond scum into a “green” factory for chemicals. These are some of the innovations we have selected for this quarter, all of which lay the groundwork for paradigm shifts throughout the economy. Whether in medicine or robotics, these innovations challenge the status quo and offer novel solutions to old problems. The human capacity for ingenuity continues to impress us.
Immune system successfully reprogrammed to fight child brain cancer
A team of Stanford researchers recently demonstrated that CAR-T immunotherapy, which edits the cells of the immune system to target cancer, could be used to treat a universally fatal cancer of the brainstem.1 Nine out of 11 patients responded favorably to the therapy, including one patient who is tumor-free four years later. Several participants regained the ability to walk, while others saw symptoms like incontinence and paralysis reverse.
Why it matters: The traditional methods of treatment failed for this type of cancer; attempts to remove the tumor via surgery impaired vital brain function, no chemotherapy was effective, and radiation offered only temporary relief. The success of this trial is another feather in the cap for genomics and its offshoot, cell therapy. Today, scientists can now repurpose the fundamental mechanisms of biology to cure what was once untreatable.
New chip uses light to enable ultrafast artificial intelligence (AI) computations
Researchers from MIT have solved the remaining piece of the puzzle to enable light-powered or “optical” computer chips: nonlinear operations.2 Similar to the breakthrough of the integrated electrical circuit in the late 1950s, this achievement centralizes everything needed to perform machine learning—both linear and non-linear operations—onto a single optical chip.
Why it matters: This innovation addresses the two major bottlenecks in the development of AI, speed and power. The new chip, which can be produced at scale using today’s fabs, is faster and more efficient than a traditional chip. The chip also has a 92% accuracy rate for inference, which is on par with digital alternatives.
Exhibit 1: Illustration of CAR-T immunotherapy
CAR-T immunotherapy edits the cells of the immune system to target cancer and could be used to treat cancer of the brainstem.
For illustrative purposes only.
Tiny robots deliver drugs inside the body
Using magnets, an engineer and her team have now designed a fingertip-sized robot that can crawl, spin and swim through the human body.3 By shifting the strength or orientation of a magnetic field, the robot can leap 10x its length in a single move. Each element of the robot’s design is considered with function in mind, including its accordion-like shape which assists in drug dispensing.
Why it matters: This tiny robot has the potential to transform how medicine is received. Replacing pills and injections, this robot withholds medicine until it reaches the proper destination—usually a particular organ—and then releases a high concentration of the drug in exactly the right spot. In the future, the robot could also be used to carry untethered instruments or cameras into the body for diagnosis, in lieu of surgery.
Pond scum gene-edited to produce green chemicals
A new startup is focused on manufacturing environmentally friendly and carbon-neutral chemicals. They’ve genetically engineered a type of bacteria colloquially known as pond scum to make chemicals out of light, water, and carbon dioxide.4 The first use cases will be in cosmetics, with textiles not far behind. The first chemical will be hyaluronic acid, a key ingredient in skincare products.
Why it matters: Conventional production methods for chemicals rely on fossil fuels. In contrast, pond scum is a net consumer of carbon for photosynthesis. Further, the team has found a new strain of the bacteria with seven times greater productivity, which greatly improves the commercial viability of the product.
Smart robots sort waste better than humans
The challenge of recycling at scale in a cost-effective way has long vexed the waste industry. A company has now made progress in the right direction by sorting heaps of trash using AI and robots.5 Inside their facilities, AI-enabled cameras watch trash on a conveyor belt and identify what can be recycled. Then, robotic arms separate those items from the rest.
Why it matters: Today, only 32% of eligible waste is actually recycled for two reasons. At the top of the funnel, most people aren’t adept at sorting their own waste. Then at the recycling facility, it is too expensive to employ humans to separate the recycling from the trash. Prior attempts to increase yield inserted robots into existing facilities but did not fully automate the process. This new solution, which uses 400 robots spread across three existing facilities, works without any human involvement at all.
Endnotes:
- Source: Digitale, Erin. “Cell therapy fights lethal childhood brain cancer in Stanford Medicine trial.” Stanford Medicine News Center. November 13, 2024.
- Source: Zewe, Adam. “Photonic processor could enable ultrafast AI computations with extreme energy efficiency.” MIT News. December 2, 2024.
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Source: “Stanford engineers develop tiny robots to bring health care closer to precisely targeted drug delivery.” Stanford Report. June 14, 2022.
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Source: Lomas, Natasha. “From pond scum to premium skincare? Deep Blue BioTech is all in on blue-green algae to make better chemicals.” TechCrunch. November 28, 2024.
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Source: De Chant, Tim. “Amp Robotics raises $91M to build more robot-filled waste sorting facilities.” TechCrunch. December 5, 2024.
INVESTMENT POTENTIAL AND RISKS
There are also risks in investing in this or any asset class. The initial potential of any asset class may not carry over to any specific company or the entire asset class chosen for investment, over any investment time period. Any of the investment assumptions may never come to fruition. Investors should be prepared for potential losses as well as the possibility of investment gains. Ideas, products, companies or entire asset classes with positive past performance are not indicative of future results.
WHAT ARE THE RISKS?
All investments involve risks, including possible loss of principal.
Equity securities are subject to price fluctuation and possible loss of principal.
Investments in fast-growing industries like the technology and health care sectors (which have historically been volatile) could result in increased price fluctuation, especially over the short term, due to the rapid pace of product change and development and changes in government regulation of companies emphasizing scientific or technological advancement or regulatory approval for new drugs and medical instruments.
Any companies and/or case studies referenced herein are used solely for illustrative purposes; any investment may or may not be currently held by any portfolio advised by Franklin Templeton. The information provided is not a recommendation or individual investment advice for any particular security, strategy, or investment product and is not an indication of the trading intent of any Franklin Templeton managed portfolio. Past performance does not guarantee future results.