There is hardly such a thing as a risk-free investment, no matter where you care to look. However, some investments tend to be more risky than others. And in the equity markets, the biotech sector tends to have more than its fair share. Yet, risky stocks can also often offer attractive upside potential.

Let's look at two examples: Recursion Pharmaceuticals (NASDAQ: RXRX) and Madrigal Pharmaceuticals (NASDAQ: MDGL). These two clinical-stage biotechs could make their shareholders much richer, provided things break their way. 

Creating novel therapies, from the discovery stage to eventual approval, takes years and plenty of money. Recursion Pharmaceuticals wants to improve things by using artificial intelligence (AI). The company uses a proprietary operating system that houses a database of genes within the human body and machine learning algorithms that run experiments to predict how some clinical compounds would interact with some genes.

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Source Fool.com