Insilico, SK Biopharm Sign AI Drug Discovery Deal Worth Up to $2.5 Billion

Insilico Medicine and SK Biopharmaceuticals have signed an artificial intelligence-powered drug discovery agreement worth up to $2.5 billion to develop treatments for neuroimmune disorders affecting the central nervous system (CNS).

Under the agreement, Insilico will use its Pharma.AI platform to identify and optimize drug candidates, while SK Biopharmaceuticals will oversee clinical development, regulatory activities, and commercialization efforts. The companies said the collaboration will focus on neuroinflammatory, neurodegenerative, and rare neurological diseases.

The transaction includes $18 million in upfront and near-term milestone payments, with the remaining value tied to future development, regulatory, and commercial milestones. The companies said the deal is Insilico's largest partnership with an Asia-Pacific company by total potential value.

Expansion Beyond Epilepsy

Donghoon Lee, President and CEO of SK Biopharmaceuticals, said the partnership supports the company's plans to expand beyond its epilepsy business into additional CNS therapeutic areas.

“This collaboration represents an important milestone in expanding our growth beyond epilepsy into new CNS therapeutic areas,” Lee said.

SK Biopharmaceuticals plans to leverage development and commercialization capabilities built around its epilepsy treatment Xcopri (cenobamate), which has become the company's flagship product.

Alex Zhavoronkov, Co-CEO and Chief Business Officer of Insilico Medicine, said the collaboration aims to combine the companies' expertise to develop therapies across both conventional small molecules and newer therapeutic modalities.

The partnership adds to SK Biopharmaceuticals' broader investment in AI and digital health technologies. In October 2025, the company launched Mentis Care, a joint venture with Eurofarma focused on an AI-powered epilepsy management platform that combines seizure detection, prediction algorithms, and clinical decision-support tools.

Insilico Continues Dealmaking Push

The agreement extends a period of active partnership activity for Insilico following its Hong Kong public listing in late 2025.

In March, Eli Lilly expanded its partnership with the company in a deal worth up to $2.75 billion covering AI-developed therapeutics for undisclosed indications,

The company has also broadened its AI research efforts through a collaboration with Human Longevity focused on developing foundation models trained on biological and clinical datasets.

More broadly, pharmaceutical companies continue increasing investments in AI-assisted drug discovery as they seek to improve early-stage research productivity and candidate selection. Recent collaborations across the industry have highlighted both the opportunities and remaining development challenges associated with applying AI to drug development workflows.

Insilico has signed several major partnerships during the past year, including agreements with Eli Lilly, Servier, Qilu Pharmaceutical, Hygtia Therapeutics, and Tenacia Biotechnology. The SK Biopharmaceuticals collaboration further expands the company's presence in CNS drug discovery while providing another large pharmaceutical partner access to its AI-driven research platform.