Insilico Medicine Raises $110M in Series E Funding to Advance AI-Driven Drug Discovery

Massachusetts-based Insilico Medicine has successfully raised $110 million in an oversubscribed Series E funding round led by a large equity fund of Value Partners Group, an asset management firm in Asia, with participation from new and existing investors.

The company's proprietary generative AI platform, Pharma.AI, combines biology, clinical medicine, scientific research, and generative chemistry to revolutionize drug discovery processes. Pharma.AI incorporates several advanced technologies, including large language models (LLMs), Nach01 (a multimodal foundation model for nature and chemical languages), and Dora, a multi-agent generative research assistant.

In a significant technological advancement, Insilico has deployed what it describes as the first bipedal humanoid AI Scientist, designed to optimize and automate research workflows within its fully robotic laboratory, Life Star1. This robotic lab is directly connected to the Pharma.AI platform, creating an integrated system for drug discovery and development.

The newly secured funds will be allocated to advancing Insilico's drug pipeline, enhancing its AI platform capabilities, and expanding its biopharmaceutical research and development efforts. Additionally, the company plans to broaden its collaborations across the industry and increase applications of its AI platform throughout the life sciences sector.

"We are excited to partner with Insilico Medicine in its mission to transform drug discovery with AI and automation. With a proven track record and a leadership position in AI-driven drug development, Insilico is at the forefront of transforming the industry," said Dr. Chuen Yan Leung, partner (healthcare investments) at Value Partners Group, in a statement. "We believe that Insilico's advancements will not only accelerate the development of life-saving therapies but also redefine the future of biopharmaceutical R&D. This partnership also marks a significant milestone for Value Partners' private equity strategy and our vision of investing in disruptive innovations that have the potential to reshape industries."

This investment follows Insilico's recent licensing agreement with Italian pharmaceutical company Menarini Group, allowing Menarini's subsidiary, Stemline Therapeutics, to utilize a novel AI-discovered preclinical asset for oncology developed using Insilico's Chemistry42 AI platform. The agreement includes a $20 million upfront payment, with potential value exceeding $550 million through various milestones, plus tiered royalties.

Insilico has demonstrated consistent growth in its funding journey, securing $60 million in Series D funding in 2022, preceded by $225 million in Series C funding the year before.

The AI drug discovery landscape continues to evolve, with companies like Manas AI recently launching with $24.6 million in seed funding co-led by General Catalyst and LinkedIn cofounder Reid Hoffman. Israel-based AION Labs represents another prominent player in this space, operating as a partnership between major pharmaceutical companies, including AstraZeneca, Merck, Pfizer, Israel Biotech Fund, and Teva Pharmaceuticals, alongside tech company Amazon Web Services and German research institute Bio Med X.

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