Bayer has entered into a drug discovery collaboration with Iambic Therapeutics, a clinical-stage biotechnology company specializing in AI-powered drug development, as it expands the use of artificial intelligence in identifying new treatment candidates.

The collaboration, announced on June 22, will focus on the discovery of small-molecule medicines, leveraging Iambic’s proprietary AI platform to uncover novel drug targets and design differentiated compounds for diseases that have historically been difficult to treat.

The collaboration will integrate Iambic’s flagship AI technologies, Enchant and NeuralPLexer, to help identify new molecular entry points and accelerate the search for promising drug candidates. Bayer said the initiative is intended to strengthen its early-stage research portfolio and enhance decision-making across the drug development process.

The agreement reflects a broader trend across the pharmaceutical industry, where companies are increasingly turning to AI to improve the efficiency of drug discovery. Traditional drug development typically spans more than a decade and can cost billions of dollars, while the vast majority of experimental therapies fail before reaching the market.

By applying AI-based molecular optimization techniques, Bayer and Iambic aim to identify higher-quality hit molecules earlier in the discovery process, shorten optimization timelines, and improve the probability of success for future drug candidates.

The partnership also underscores Bayer’s growing focus on incorporating advanced computational technologies into research and development as companies seek to reduce the cost and complexity of bringing new therapies to patients.

“Iambic is proving that better technology leads to better medicines, both in our own hands and with visionary partners like Bayer,” said Tom Miller, PhD, co-founder and CEO of Iambic. “Through this collaboration, Bayer secures access to industry-leading technology, including Iambic’s frontier AI models Enchant and NeuralPLexer, and together we expand the universe of potential life-saving medicines.”