Eli Lilly Expands Insilico AI Drug Discovery Deal to $2.75 Billion

Eli Lilly and Company expanded its partnership with Insilico Medicine in a deal worth up to $2.75 billion, according to Reuters. The Financial Times first reported the agreement.

Insilico will receive $115 million upfront, with additional payments tied to development, regulatory, and commercial milestones, Reuters reported. The total deal value could reach approximately $2.75 billion, excluding tiered royalties on future sales, the company said.

Eli Lilly will receive an exclusive worldwide license to develop, manufacture, and commercialize certain oral drug candidates currently in preclinical development, Reuters reported. The agreement covers multiple programs across therapeutic areas, The Wall Street Journal reported.

The companies will also collaborate on research and development programs using Insilico’s Pharma.AI platform, with targets selected by Eli Lilly, The Wall Street Journal reported. The platform is used to identify biological targets and design new drug candidates using machine learning models.

“This collaboration allows us to explore novel mechanisms and accelerate the identification of promising therapeutic candidates across multiple disease areas,” Andrew Adams, Group Vice President of Molecule Discovery at Eli Lilly, said in a statement reported by CNBC.

Insilico has developed at least 28 drug candidates using generative AI systems, with nearly half in clinical-stage development, Alex Zhavoronkov, Founder and CEO of Insilico Medicine, told CNBC. The company uses AI models to generate and evaluate molecules before laboratory testing.

“By deploying AI technologies that scale from biomarkers to life models, we can identify multi-purpose targets driving multiple diseases at the same time,” Zhavoronkov said, according to Reuters.

The partnership builds on earlier agreements between the companies, including an AI-based software licensing deal signed in 2023, CNBC reported. The companies expanded that relationship with a research collaboration in November, Reuters reported.

Insilico will also join Eli Lilly’s Gateway Labs as part of the agreement, CNBC reported. The program supports biotech companies working on drug development through shared infrastructure and collaboration.

Eli Lilly has been applying machine learning across its research and development operations, including target identification and molecule design, according to company statements cited by CNBC. The company also uses AI to support clinical development processes.

Insilico conducts AI research across multiple regions, including Canada and the Middle East, while early-stage drug development is carried out in China, Zhavoronkov told CNBC. The company said AI systems can reduce the time required to identify and design new drug candidates.

The agreement is part of a broader pattern of partnerships between large pharmaceutical companies and Chinese biotech firms, The Wall Street Journal reported. Insilico’s shares rose about 10% following the announcement, according to the publication.