In a groundbreaking development, Hong Kong-based AI-driven drug discovery company, Insilico Medicine, has sold its preclinical drug candidate for breast cancer treatment to Italian pharmaceutical company, Menarini Group, in a deal worth over $500 million. This deal highlights the vital role of cutting-edge technology, particularly artificial intelligence (AI), in revolutionizing drug discovery. By enhancing efficiency and accuracy while reducing time-consuming aspects of research and development, AI has emerged as a catalyst in the field.
According to Dr. Alex Zhavoronkov, founder and co-CEO of Insilico, AI expedites the process of identifying potential drugs. The AI-driven drug discovery market is expected to show significant growth, with a projected compound annual growth rate of 23.72% from 2023 to 2030, reaching an estimated value of $7.1 billion by 2030, as reported by US-based Vantage Market Research.
Under the exclusive licensing agreement, Insilico has granted Menarini subsidiary Stemline Therapeutics global rights to develop and commercialize a novel small molecule KAT6A inhibitor as a potential treatment for hormone-sensitive cancers and other oncology indications. Breast cancer, the most common cancer worldwide and the leading cause of cancer death among women, presents a significant market opportunity. The global breast cancer market is projected to reach approximately $73.68 billion by 2032, with a registered compound annual growth rate of 9.9%, according to Precedence Research.
Dr. Alex Zhavoronkov expressed his satisfaction with the partnership, stating, “The partnership at the early stage preclinical trial is truly optimal when the partner is very committed.” Menarini, an international pharmaceutical and diagnostics company with a turnover exceeding $4.4 billion and operations in 140 countries, sees this collaboration as an opportunity to explore new treatment approaches and potentially unlock transformative cancer therapies. According to CEO Elcin Barker Ergun, the company is excited to work with Insilico in their pursuit of innovative drug discovery.
Insilico, founded by Dr. Alex Zhavoronkov in 2014, has demonstrated its commitment to advancing drug discovery through AI technology. With a pipeline consisting of 31 programs for 29 drug targets in various disease areas, including cancer, fibrosis, immunity, central nervous system disorders, and aging-related diseases, Insilico is poised to make significant contributions to the pharmaceutical industry. The company has a presence in the markets of the US, Greater China, Canada, and the Middle East. In February 2023, Insilico launched the Generative AI and Quantum Computing Research and Development Center in Abu Dhabi, further solidifying its dedication to innovation.
Insilico had previously announced its plans for an initial public offering (IPO) in Hong Kong as a means to fund clinical trials of drugs discovered and designed by artificial intelligence. However, Dr. Alex Zhavoronkov declined to provide a specific timeline for the IPO, citing market sentiment as a concern. Nevertheless, the company has already raised over $400 million through private markets and secured series D financing of $95 million in 2022 from investors such as Prosperity7, a growth venture fund of Saudi Arabia’s Aramco, as well as B Capital Group, Warburg Pincus, and Qiming Ventures.
The acquisition of Insilico’s breast cancer drug candidate by Menarini Group marks a significant milestone in the field of AI-driven drug discovery. With the potential to transform treatment options for hormone-sensitive cancers and other oncology indications, this partnership highlights the growing importance of AI in revolutionizing the pharmaceutical industry. As technology continues to advance, it is clear that AI will play a vital role in bringing about breakthroughs in drug discovery, ultimately improving patient outcomes and saving lives.
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