Generative-AI drug developer Insilico Medicine said on Sunday that it has agreed a global licensing and research deal with US drugmaker Eli Lilly, that could be worth up to US$2.75 billion, including milestone payments.
Pharmaceutical companies are increasingly turning to artificial intelligence (AI) to accelerate R&D, betting on new modelling tools and automated labs to unlock efficiency gains across their pipeline, and in line with a push by the US Food and Drug Administration to reduce animal testing in the near future.
Under the agreement, Lilly will receive an exclusive licence to develop, manufacture and commercialise preclinical oral drug candidates by Insilico Medicine for selected disease areas, the Hong Kong‑listed company said in a regulatory filing.
Insilico Medicine also said that it will receive an upfront payment of US$115 million and is eligible for development, regulatory and commercial milestone payments that could take the total deal value to about US$2.75 billion, as well as tiered royalties on future sales.
The Financial Times had earlier reported on this deal. The newspaper, citing unnamed sources, said that Lilly will acquire exclusive rights to sell a GLP-1 drug for diabetes from Insilico Medicine.