Eli Lilly signs $2.75 billion deal with AI drug developer Insilico Medicine

Eli Lilly has signed a $2.75 billion deal with Hong Kong-listed AI pharmaceutical company Insilico Medicine. The partnership aims to bring AI-developed drugs to the global market. Insilico will receive $115 million upfront, with the rest tied to regulatory and commercial milestones as well as license fees, both companies announced.

According to founder and CEO Alex Zhavoronkov, Insilico has developed at least 28 drugs using generative AI, with nearly half already in clinical trials. The two companies have been working together since 2023.

Zhavoronkov told CNBC that Lilly actually outperforms Insilico in some areas of AI. Andrew Adams of Lilly called Insilico's AI research "a powerful complement" to its own clinical development efforts. Insilico is building its AI capabilities in Canada and the Middle East, while early drug development takes place in China. Eli Lilly is also working with a Deepmind subsidiary on AI-driven medicine.