Pharmaceutical giant Eli Lilly is set to announce a major partnership worth up to $2 billion with Hong Kong biotech company Insilico Medicine, according to a Financial Times report published Sunday.
The collaboration will focus on developing and marketing diabetes medications using artificial intelligence technology. Under the agreement, Lilly will gain exclusive marketing rights for a GLP-1 diabetes treatment developed by Insilico Medicine, sources told the Financial Times.
According to the report, the partnership structure includes an initial payment of $115 million, with the total value potentially reaching more than $2 billion depending on whether the companies meet future regulatory approvals and sales targets.
Neither Eli Lilly nor Insilico Medicine responded immediately to requests for comment, and Reuters was unable to independently confirm the details of the reported agreement.
The pharmaceutical industry has been increasingly embracing artificial intelligence to speed up research and development processes. Companies are investing in advanced modeling technology and automated laboratory systems to improve efficiency throughout their drug development pipelines, particularly as the U.S. Food and Drug Administration works to reduce reliance on animal testing in coming years.
