Biotech & Genomic Medicine▼2impact 4
Insilico Medicine and SK Biopharmaceuticals strike $2.5 billion AI drug discovery deal
Insilico Medicine has signed a partnership with South Korea's SK Biopharmaceuticals to develop new drugs for neuroimmune conditions in a deal valued at more than $2.5 billion. Insilico will use its Pharma.AI platform to design new candidates, while SK Biopharmaceuticals will handle late-stage development and commercialization. The Hong Kong–listed company is set to receive $18 million in near-term payments, with the potential to earn up to $2.5 billion upon reaching certain development and commercial milestones, plus royalties. This is Insilico's largest tie-up with an Asia-Pacific partner and its second deal of this magnitude with a major pharmaceutical company, following a $2.75 billion agreement with Eli Lilly in late March. Insilico's shares rose 5.6% in Hong Kong trading on Monday after the announcement, while SK Biopharmaceuticals' shares dropped 1.7%.