Eli Lilly has expanded its collaboration with Insilico Medicine, reinforcing its commitment to AI-powered drug discovery. The agreement could reach a total value of $2.75 billion, marking one of the sector’s notable AI-focused partnerships.
Under the terms of the deal, Lilly will leverage Insilico’s proprietary AI engine. The company will also gain exclusive worldwide licensing rights for the development, manufacturing, and commercialization of selected oral drug candidates currently in preclinical development.
Insilico will receive an upfront payment of $115 million. Additional payments tied to development, regulatory approvals, and commercial milestones could bring the total deal value close to $2.75 billion. The agreement also includes tiered royalties on future product sales.
Alex Zhavoronkov, Founder and CEO of Insilico Medicine, highlighted the transformative potential of AI in drug discovery:
“By deploying AI technologies that scale from biomarkers to comprehensive models of human and animal biology, we can identify multi-purpose targets that drive multiple diseases simultaneously.”
This expanded agreement builds on an ongoing relationship between the two companies. Lilly and Insilico signed a research collaboration in November, following an earlier AI-based software licensing deal established in 2023.
