Recently, Genesis Therapeutics announced a collaboration with Eli Lilly and Company to leverage Genesis's AI-driven drug discovery platform for identifying innovative therapies targeting up to five distinct targets across multiple therapeutic areas.
According to the agreement, scientists from Genesis and Eli Lilly will collaborate to leverage Genesis' AI-driven drug discovery platform, focusing on developing potential "first-in-class" and "best-in-class" drug candidates targeting three specific targets. Genesis will receive an upfront payment of $20 million, while Eli Lilly retains the option to add two additional target areas. In return, Genesis is eligible to earn up to a total of $670 million in upfront and milestone payments.
It is understood that, amid the continuous advancement and development of artificial intelligence (AI) technology, an increasing number of pharmaceutical companies are leveraging AI to reshape their strategies for new drug discovery. This approach not only helps shorten the drug development cycle but also reduces costs associated with compound screening and clinical trial expenses, ultimately enhancing the overall success rate of drug research and development. Among these companies, Eli Lilly stands out as a prominent example. In recent years, Eli Lilly has been actively expanding its presence in the AI domain. For instance, in December 2021, Shanghai Qilu RuiGe Pharmaceutical R&D Co., Ltd. ("RuiGe Pharma") entered into a strategic partnership with Eli Lilly. Over the next several years, the two companies plan to collaborate closely across preclinical drug development, clinical research, and commercialization efforts, jointly advancing innovative therapeutic solutions aimed at addressing metabolic diseases.
In this collaboration, Rigel Pharmaceuticals will grant Eli Lilly USA an intellectual property license related to Rigel's proprietary technologies. In return, Lilly will be responsible for the clinical development, manufacturing, and commercialization of these products outside Greater China (encompassing Mainland China, Hong Kong, Macau, and Taiwan), while Rigel will retain the corresponding rights within the Greater China region.
Rigel Pharmaceuticals will receive an upfront payment totaling USD 50 million, which includes a partial equity investment. Additionally, Rigel is eligible to earn up to USD 1.5 billion in potential milestone payments tied to preclinical research, clinical development, and commercialization activities, as well as single-digit to low-double-digit percentage royalties on global sales.
It is worth noting that the relevant officials stated this collaboration represents recognition of RuiGe Pharma's core technology and research capabilities. RuiGe Pharma, a cutting-edge biopharmaceutical company currently in the clinical stage, aims to leverage its AI-powered drug discovery platform—Computer Accelerated Rational Discovery (CARD)—to target "long-standing" challenges in the pharmaceutical industry and develop innovative drugs with distinct clinical advantages. The company is primarily focused on three key therapeutic areas: oncology, immunology, and metabolism. Notably, the company previously secured $90 million in Series B funding led by Eli Lilly Asia Fund.
In addition, on November 7, 2020, during the third China International Import Expo, Eli Lilly China joined hands with the Beijing Yangtze River Pharmaceutical Development Foundation and Shanghai Airdoc Medical Technology Co., Ltd. (hereinafter referred to as Airdoc) to officially launch the Psoriasis Artificial Intelligence Simulation and Management Project. It is reported that this innovative health initiative aims to leverage artificial intelligence technology to provide Chinese psoriasis patients with a comprehensive, end-to-end disease management solution—ranging from auxiliary diagnosis to disease simulation, monitoring, and scoring—thereby establishing a new "intelligent, full-course management model for psoriasis."
Looking internationally, in addition to Eli Lilly, major domestic and international companies such as Novartis, Pfizer, GSK, AstraZeneca, Sanofi, Fosun Pharma, and Qihui Bio have also begun exploring and deploying AI-driven drug R&D, continuously advancing their strategies in the rapidly growing field of AI-based pharmaceutical innovation.
For instance, recently, Enwa Pharmaceutical and DeepMotion Technology reached a strategic cooperation agreement. Together, the two parties will jointly advance Enwa Pharmaceutical's research and development efforts in innovative small-molecule drugs targeting the central nervous system. At the same time, they will further explore their collaborative strengths, integrating AI technologies more extensively with innovative molecular drug discovery to accelerate and broaden the R&D process and innovation dimensions in the field of central nervous system therapeutics.
Regarding this collaboration, DeepMotion Technologies stated that it will deeply integrate the AI-powered molecular simulation-based computational paradigm into practical joint R&D projects, jointly establishing a "computational design–experimental validation" R&D model. We look forward to achieving more groundbreaking results in accelerating the development of novel drugs in the central nervous system field.
It is worth noting that, with the increasing number of companies entering the field, the AI-driven drug discovery sector has become exceptionally hot. For instance, in China, a wave of financing activities centered around AI-based pharmaceutical innovation continues to gain momentum. Data reveals that in 2021 alone, there were 34 financing deals in China's AI pharmaceutical sector, totaling over 8 billion yuan. By the first quarter of 2022, this trend accelerated further, with more than 10 new rounds of funding secured by companies such as Xihu Oumi, XinHua Bio, Laimeng Bio, DeepMotion Tech, Yudao Bio, YiYao Tech, and Kehui Zhiyao.
Industry insiders believe that, given the current situation, China's AI-driven drug development sector will continue to thrive. As competition in new drug R&D intensifies, innovation in pharmaceutical research is expected to accelerate further. Moreover, with the continuous emergence of groundbreaking achievements, an increasing number of patients are likely to have more treatment options available in the future.
Disclaimer: Under no circumstances should the information or opinions expressed in this document be construed as investment advice to anyone.
