Insilico Medicine, a biotechnology company specializing in generative AI, has entered into a strategic partnership with Qilu Pharmaceutical Group and its subsidiary Shanghai Qilu Pharmaceutical Research Center. The collaboration aims to develop small molecule inhibitors targeting cardiometabolic diseases by leveraging Insilico's proprietary Pharma.AI platform.
Under the agreement, Insilico Medicine will focus on designing and optimizing new small molecules for metabolic disease treatment using its AI technology. Qilu Pharmaceutical Group will handle subsequent development and commercialization activities. The contract is valued at nearly $120 million, which includes milestone payments tied to development and commercialization, as well as single-digit royalties based on net sales.
Weikang Tao, PhD, Board Member, Group VP & Head of Global R&D at Qilu Pharmaceutical Group stated: "As a leading pharmaceutical company in China, Qilu has always attached great importance to the quick advancement of AI technology, in particular, the application of AI in drug R&D and its potential. Insilico is a well-known biotech in AI-powered drug R&D with advanced AI technology and application capabilities. This collaboration marks a deepening of our partnership, evolving from initial software licensing to in-depth, R&D collaboration. We look forward to the smooth progress of this innovative drug discovery and development project through the synergy of Qilu's extensive R&D experience and capabilities and Insilico's advanced AI platform and expertise, thereby to address unmet medical needs and to bring new hope to patients worldwide."
Alex Zhavoronkov, PhD, Founder and Chief Executive Officer as well as Chief Business Officer of Insilico Medicine added: "We are pleased to see Insilico Medicine and Qilu Pharmaceutical further deepen their strategic collaboration driven by generative AI. Recently, Insilico Medicine unveiled its proprietary cardiometabolic portfolio at the BIO-Europe conference, covering 8 drug candidates ranging from hit to IND-enabling stage, all driven by Pharma.AI in their development process. I believe that strategies targeting cardiometabolic diseases have the potential to generate the first drugs to achieve large-scale healthspan extension, and I look forward to AI technology accelerating innovation in the field and maximizing potential."
Insilico Medicine has expanded its business model beyond drug discovery into software solution licensing. The company reports having software licensing agreements with 13 out of the world's top 20 multinational pharmaceutical companies. It has also established research collaborations involving upfront payments totaling tens of millions of dollars with companies such as Fosun Pharma and Sanofi; pipeline out-licensing deals have been made with Exelixis and Menarini Group for total transaction values exceeding $2 billion.
Qilu Pharmaceutical began using PandaOmics—one component of Insilico’s platform—in 2021. This early adoption led up to the current near $120 million partnership focused on developing innovative therapies more efficiently through artificial intelligence.
Since first publishing on generative AI for novel molecule design in 2016—a foundation for what became Pharma.AI—Insilico has continued technical advancements across biology, chemistry, medicine development, and scientific research within its platform. Since 2021 alone it has nominated 22 developmental or preclinical candidates from a portfolio exceeding 30 assets; Rentosertib is currently its most advanced candidate after showing positive results in Phase IIa clinical trials.
