Eli Lilly bets $2.75B on AI-developed drugs

Pharmaceutical giant Eli Lilly has signed a $2.75 billion deal with Hong Kong-based Insilico Medicine to bring artificial intelligence-developed drugs to the global market.

Under the deal, Lilly gains exclusive worldwide rights to a portfolio of drug programs across multiple therapeutic areas, including the rights to market a GLP-1 diabetes drug developed by the startup, per the Financial Times.

Insilico will receive $115 million upfront and could earn additional milestone payments tied to development and commercial progress.

AI speeds up drug discovery
Insilico has created at least 28 drugs using generative AI, with nearly half already in clinical trials. 

The company says that artificial intelligence reduces research time and accelerates the synthesis of molecules compared to traditional methods. Its shares have surged by more than 50% this year, reflecting growing investor confidence in AI-driven healthcare innovation.

The partnership builds on a 2023 software licensing deal and will expand joint research into new treatment approaches across several diseases.

Insilico will also join Lilly’s biotech development network to scale innovation.

The deal aligns with Lilly’s broader strategy to expand in China, where it plans to invest $3 billion over the next decade, despite the market contributing less than 3% of its revenue last year.

Following the announcement, Insilico’s shares jumped about 10% in early trading on Monday, reflecting strong investor confidence in AI-powered drug discovery partnerships.