AI-powered biotech company Insilico Medicine has signed a deal with pharma giant Eli Lilly and Company that could be worth $2.75 billion, plus tiered royalties on future sales, that allows the pharma giant to exclusively use Insilico's AI engine for drug discovery and development across several therapeutic areas.
Insilico's Pharma.AI platform uses generative AI and large language models (LLMs) to speed up drug discovery, scientific research and sustainability. The company touts its platform as an end-to-end tool capable of discovering and designing a small-molecule or biologic drug alongside the biomarker for patient selection. Insilico says on its site that the result can produce a significant disease-modifying or curative response.
Under the agreement, Lilly was granted an exclusive global license to use Insilico's AI for the drug development, manufacturing and commercialization of potential therapeutics.
The partners will also collaborate on multiple research and development programs by combining Insilico's Pharma.AI platforms with the pharma giant's disease knowledge and development capabilities, with Lilly selecting the focus areas.
Per the agreement, Insilico will receive $115 million upfront. Once commercial, development and regulatory milestones are reached, the company can receive up to approximately $2.75 billion, plus royalties on future sales.
"From its inception, Insilico Medicine has been developing deep learning for end-to-end drug discovery. By deploying frontier AI technologies that scale from biomarkers to life models, world models of human and animal life, we can identify multi-purpose targets driving multiple diseases at the same time," Alex Zhavoronkov, founder and CEO of Insilico Medicine, said in a statement.
"Working with Lilly, we aim to deliver transformative therapies that treat diseases with high unmet need. This collaboration is a testament to the power of AI in tackling the most complex challenges in human health."
Insilico has announced numerous partnerships with pharma companies this year.
This month, Insilico unveiled an extended partnership with Hong Kong-based Tenacia Biotechnology, a commercial-stage biopharma company focused on developing therapeutics for individuals with neurological disorders.
The deal was valued at up to $94.75 million and would deepen the partners' collaboration in AI-enabled research and development.
In the initial phase of the collaboration, launched in March 2025, the companies combined Insilico's Pharma.AI platform with Tenacia's data assets and drug-discovery expertise.
"The program focused on developing small-molecule inhibitors with strong blood-brain barrier permeability for CNS treatment is progressing smoothly," the companies said in a statement.
"Under the expanded agreement, the companies will leverage generative AI to jointly develop an additional innovative candidate with defined properties for challenging neurological diseases and advance it to the preclinical candidate stage to address differentiated clinical needs."
In February, Insilico announced multiple drug discovery collaborations with China Medical System (CMS), an open-platform company that links pharmaceutical innovation and commercialization with product lifecycle management. That partnership focuses on the central nervous system and autoimmune diseases.
In January, Insilico unveiled a multi-year R&D collaboration with French-based Servier, which focuses on developing oncology therapies. The deal was valued at up to $888 million.
The same month, Insilico partnered with China-based Qilu Pharmaceutical Group to develop novel cardiometabolic disease therapies leveraging Pharma.AI.
The total contract value approached $120 million, and the partnership includes development and commercialization milestone payments, as well as royalties based on sales.
Insilico is not a U.S. public company but began trading on the Hong Kong Stock Exchange in December. It completed its IPO under the ticker
3696.HK
on Dec. 30, 2025, and raised around HKD 2.28 billion ($290 million), making it one of the largest biotech IPOs in Hong Kong in 2025.
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