Insilico Medicine has entered into a drug discovery collaboration with Eli Lilly and Company to accelerate the development of new therapeutics using artificial intelligence.

The agreement gives Lilly exclusive global rights to develop and commercialize certain oral drug candidates currently in preclinical stages. The two companies will also work together on multiple research programs, combining Insilico’s AI-driven Pharma.AI platforms with Lilly’s expertise in clinical development and disease biology.

“From its inception, Insilico Medicine has been developing deep learning for end-to-end drug discovery. By deploying frontier 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. “Working with Lilly, we aim to deliver transformative therapies that treat diseases with high unmet needs. This collaboration is a testament to the power of AI in tackling the most complex challenges in human health.”

Under the terms of the deal, Insilico will receive an upfront payment of $115 million and may earn additional milestone payments tied to development, regulatory approvals, and commercialization, potentially bringing the total value of the agreement to about $2.75 billion, along with royalties on future sales.

“Insilico’s AI-enabled discovery capabilities represent a powerful complement to Lilly’s deep expertise in clinical development across multiple therapeutic areas,” said Andrew Adams, Group Vice President of Molecule Discovery at Lilly. “This collaboration allows us to explore novel mechanisms and accelerate the identification of promising therapeutic candidates across multiple disease areas.”