Mounjaro-maker inks $2.7B deal to speed up AI drug discovery
Mounjaro-maker inks $2.7B deal to speed up AI drug discovery
US pharmaceutical giant Eli Lilly has signed a massive $2.75 billion deal with Hong Kong-listed biotech firm Insilico Medicine.
The agreement will see Eli Lilly take AI-developed drugs to the global market, while Insilico will get an upfront payment of $115 million and further payments based on regulatory approvals and commercial milestones.
The deal builds on their previous collaboration from 2023, when they signed an AI-based software licensing agreement.
Eli Lilly secures Insilico Medicine license
Under the terms of the deal, Eli Lilly will get an exclusive license to develop, manufacture, and commercialize Insilico Medicine's preclinical oral drug candidates in selected disease areas.
Insilico has already developed at least 28 drugs using generative AI tools, with half of them at a clinical stage.
The company's founder and CEO Alex Zhavoronkov said that Eli Lilly has "one individual" who has successfully integrated biology, chemistry, and automation within a single framework.
Eli Lilly says collaboration accelerates discovery
Eli Lilly's group VP of Molecule Discovery Andrew Adams said this collaboration would enable them to explore novel mechanisms and accelerate the identification of promising therapeutic candidates across multiple disease areas.
He emphasized Insilico's AI-enabled discovery as a powerful complement to Lilly's clinical development capabilities.
The partnership highlights the growing trend of pharmaceutical companies leveraging AI technology for research and development (R&D) purposes.
Eli Lilly plans $3B China investment
Eli Lilly CEO David A. Ricks recently announced plans to invest $3 billion in China over the next decade. The company also revealed that nearly 3% of its revenue came from China last year.
Eli Lilly has also announced plans to expand its manufacturing capabilities and local supply chains in the country, further strengthening the presence of foreign pharmaceutical companies in one of the world's largest healthcare markets.