March 29 (Reuters) - Insilico Medicine said on Sunday it is partnering with Eli Lilly in a deal worth up to $2.75 billion, expanding an existing collaboration on AI-powered drug discovery.
Lilly will use Insilico's AI engine and receive an exclusive worldwide license for the development, manufacturing, and commercialization of certain oral treatments currently in preclinical development.
Under the terms of the agreement, Insilico is eligible to receive a $115 million upfront payment, followed by development, regulatory, and commercial milestones that could bring the total deal value to approximately $2.75 billion, plus tiered royalties on future sales.
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"By deploying AI technologies that scale from biomarkers to life models, world models of human and animal life, we can identify multi-purpose targets driving multiple diseases at the same time," said Alex Zhavoronkov, founder and CEO of Insilico Medicine.
Lilly and Insilico had signed a research collaboration in November, broadening a partnership that began with an AI-based software licensing agreement in 2023.
(Reporting by Christy Santhosh in Bengaluru; Editing by Tasim Zahid)