GoKawiilEli Lilly is betting big that generative AI can do more than just write code and create images. It can design cures for diseases. The pharma giant just reached a $2.75 billion deal with Hong Kong-based Insilico Medicine to bring AI-discovered drugs to market, reports CNBC. Insilico gets $115 million up front, with the rest tied to hitting regulatory milestones and future sales.
Insilico has developed 28 drugs using generative AI, with nearly half already in clinical trials. The company went public in Hong Kong in December and its shares are up more than 50% this year. CEO Alex Zhavoronkov said AI can synthesize molecules faster than traditional methods and cut years off research time.
The deal builds on a partnership that started in 2023. Eli Lilly called Insilico’s AI-enabled discovery “a powerful complement” to its own development work. It also comes as Eli Lilly doubles down on China, announcing plans earlier this month to invest $3 billion there over the next decade.