Eli Lilly signs $2.75 billion AI drug development deal with Insilico Medicine

Lilly, Insilico Ink Deal on AI Drugs Worth Up to $2.75 Billion

Eli Lilly & Co. has signed an AI-powered drug development deal with Insilico Medicine that could be worth up to $2.75 billion. Under the deal, announced Sunday, Insilico is eligible for $115 million in upfront payments; other milestones could bring the value to $2.75 billion, plus tiered royalties on future sales. In return, Lilly gets the exclusive worldwide rights to develop and commercialize potential medicines. The announcement builds on the partnership between the two companies, which have been working together since 2023. Hong Kong-listed Insilico is among the most advanced of the AI-enabled drug developers, with a suite of models that span the entire drug development process. The partnership with Insilico gives Lilly access to the firm's state-of-the-art AI platforms. The two companies plan to collaborate on multiple research and discovery programs for specific targets chosen by Lilly, according to a statement. The companies did not specify which disease areas or targets they're interested in. Despite its success selling obesity drugs, Lilly is already working to build a pipeline of future medicines that can power its next era. It is investing heavily in AI, in hopes that it can speed up the typically arduous drug-development process. And with its windfall from weight-loss drugs, Lilly has built an Nvidia-powered supercomputer at its headquarters in Indianapolis and in January announced it would create a new $1 billion research lab in San Francisco. "The challenge before us now is how would we find another success cycle before that one runs out, hopefully a lot sooner than it runs out, and sort of get exit velocity," Lilly Chief Executive Officer Dave Ricks said at an event with Nvidia CEO Jensen Huang in January. "Can we find more biology using AI? That is really the Holy Grail."

Eli Lilly to sign $2 billion deal for AI drug development with Hong Kong's Insilico Medicine, FT says

March 29 (Reuters) - Eli Lilly (LLY.N), opens new tab will sign a $2 billion deal with Hong Kong-listed biotech Insilico Medicine (3696.HK), opens new tab, which uses artificial intelligence ⁠for drug discovery, the Financial Times reported on Sunday. Lilly will acquire exclusive rights to sell a GLP-1 drug ⁠for diabetes from Insilico Medicine, the FT report said, ⁠citing sources familiar with the matter. Reuters could ⁠not immediately verify the report. Reporting ⁠by Rishabh Jaiswal in Bengaluru. Editing by Mark Potter Our Standards: The Thomson Reuters Trust Principles., opens new tab

Eli Lilly to sign $2bn deal for AI drug development with Hong Kong biotech

US drugmaker Eli Lilly will sign a $2bn deal with a Hong Kong-listed company that uses artificial intelligence for drug discovery, according to sources familiar with the matter, highlighting the global pharmaceutical sector's increasing reliance on medicines developed in China. Indianapolis-based Lilly will acquire exclusive rights to sell a GLP-1 drug for diabetes from Insilico Medicine, a biotech that went public on the Hong Kong stock exchange in December. Eli Lilly's Asian venture arm is one of Insilico's 10 largest shareholders. The deal, which is expected to be announced later on Sunday, includes a $115mn upfront payment and could total more than $2bn if future regulatory and sales milestones are hit, sources said. Lilly and Insilico declined to comment. Additional details about the deal could not immediately be learned. Lilly, like its rivals in the global pharmaceutical sector, is aggressively hunting in China for new drugs. A record number of pharmaceutical companies from outside China licensed drugs made by Chinese businesses in 2025, totalling $5.6bn in upfront payments, according to data from Evaluate, a data provider. In February, Lilly signed a licensing agreement for cancer and immune drugs with Chinese pharmaceutical company Innovent Biologics that included a $350mn upfront payment and an $8bn potential deal value. Lilly's Asian venture arm also invested in March in Shanghai-based biotech start-up Excalipoint. AstraZeneca in January signed a licensing deal worth up to $4.7bn with Chinese group CSPC Pharmaceuticals to develop weight-loss and diabetes drugs. Lilly's deal also casts a spotlight on the pharmaceutical sector's interest in AI for drug development. In November, Lilly announced a $345mn deal with a subsidiary of XtalPi, a Shanghai-based biotech. The deal gives Lilly access to the company's AI platform. Speaking at a conference in March, Lilly chief financial officer Lucas Montarce said the company "[is] investing heavily" in AI for research and development. "But it will take more time" to get AI drugs from a research phase to clinical testing, he said. In its annual report in February, Lilly added new language warning that "there are significant risks involved in developing and deploying AI". The company said it cannot assure its investments in AI will be effective or profitable. Additionally, "AI may enable new competitors in drug discovery and enhance the capabilities of existing competitors, thereby broadening and intensifying competitive dynamics", Lilly said. Lilly's diabetes drug Mounjaro was the world's second-biggest by sales in 2025. Sales of Lilly's diabetes and obesity drugs surged last year, propelling the company's market capitalisation to $1tn. But Lilly's shares have pared gains this year and its stock is down 17 per cent so far in 2026. Lilly is facing new competition from Novo, which launched its first pill for weight loss earlier this year. Founded in 2014 at Johns Hopkins University in Baltimore, Insilico was an early leader in developing drugs with artificial intelligence before OpenAI and Anthropic ignited a frenzy for AI technology. Insilico disclosed in December it is unprofitable, but sees licensing deals as a key source of revenue.

Eli Lilly reaches $2.75 billion deal with Insilico to bring AI-developed drugs to the global market

BEIJING -- U.S. pharmaceutical giant Eli Lilly has reached a $2.75 billion deal to bring drugs developed using artificial intelligence by Hong Kong-based Insilico Medicine to the global market. The agreement will give Insilico $115 million up front, with the remainder subject to regulatory and commercial milestones, along with royalties on future sales, according to the companies' announcement Monday. Insilico has developed at least 28 drugs using generative AI tools, with nearly half already at a clinical stage, Alex Zhavoronkov, founder and CEO of Insilico, told CNBC. The company went public in Hong Kong in December. Its shares are up more than 50% year-to-date. "In many ways, Lilly is better than us in some areas of AI," Zhavoronkov said, noting the U.S. pharma giant has "one person" who has brought biology, chemistry and automation under one roof. He added that as part of the deal, Insilico will join Lilly's Gateway Labs community for biotech development. The two companies have worked together since signing an AI-based software licensing agreement in 2023. "This collaboration allows us to explore novel mechanisms and accelerate the identification of promising therapeutic candidates across multiple disease areas," Andrew Adams, group vice president of Molecule Discovery at Lilly, said in a statement. He called Insilico's AI-enabled discovery "a powerful complement" to Lilly's clinical development. Eli Lilly CEO David A. Ricks attended a high-level forum in Beijing earlier this month, just weeks after the company announced plans to invest $3 billion in China over the next decade. The company reported that slightly less than 3% of its revenue came from China last year.

Eli Lilly to sign $2 billion deal for AI drug development with Hong Kong's Insilico Medicine: Report

Lilly will acquire exclusive ⁠rights to sell a GLP-1 drug for diabetes from Insilico Medicine, the FT report said, citing sources familiar with the ⁠matter. Eli Lilly will sign a $2 billion deal with Hong Kong-listed biotech ⁠Insilico ⁠Medicine , which uses artificial intelligence for drug discovery, the Financial Times reported ⁠on Sunday. Lilly will acquire exclusive ⁠rights to sell a GLP-1 drug for diabetes from Insilico Medicine, the FT report said, citing sources familiar with the ⁠matter. Reuters could not immediately verify the report.

InSilico, Lilly ink AI drug discovery deal worth up to $2.75 billion By Investing.com

Investing.com - InSilico Medicine Cayman TopCo (HK:3696) announced a global licensing and AI-driven drug discovery collaboration with Eli Lilly and Company (NYSE:LLY), in a deal that could be worth up to $2.75 billion, according to a company filing. Under the agreement, Lilly will receive exclusive worldwide rights to develop, manufacture, and commercialize a portfolio of novel oral therapies currently in preclinical stages. The collaboration will also see both companies jointly work on multiple research programs using InSilico's artificial intelligence platform alongside Lilly's drug development expertise. InSilico is set to receive an upfront payment of $115 million, with additional milestone payments tied to development, regulatory progress, and commercialization. The deal also includes tiered royalties on future product sales, reflecting the long-term commercial potential of the partnership. The partnership highlights growing interest among major pharmaceutical companies in leveraging AI to accelerate drug discovery. AI platforms are increasingly being used to identify targets, design molecules, and shorten development timelines, potentially reducing costs and improving success rates in bringing new therapies to market. InSilico, which listed in Hong Kong in late 2025, focuses on integrating AI and automation into drug discovery across areas such as oncology, immunology, and metabolic diseases.