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Today: Jun 13, 2024

Insilico from Hong Kong sells cancer drug in $500M deal.

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Hong Kong-based AI-driven company sells potential breast cancer drug in deal whose value could exceed US$500 million

Insilico Medicine, a Hong Kong-based AI-driven drug discovery company, has sold its preclinical drug candidate for breast cancer treatment to Italy-based pharmaceutical company Menarini Group in a deal that could reach a value of over US$500 million. Menarini will make an upfront payment of US$12 million to Insilico, followed by sales royalties. The agreement grants Menarini the global rights to develop and commercialize the drug candidate, a small molecule inhibitor that shows potential as a treatment for hormone-sensitive cancers. Breast cancer is the most common cancer worldwide and the leading cause of cancer death among women.

Key Points:

  • Insilico Medicine has sold its preclinical drug candidate for breast cancer treatment to Menarini Group in a deal that could exceed US$500 million.
  • Menarini will make an upfront payment of US$12 million, followed by sales royalties, for the global rights to develop and commercialize the drug candidate.

This deal comes at a time when AI-driven technology is revolutionizing drug discovery. AI enhances efficiency, accuracy, and reduces the time-consuming aspects of research and development. The AI-driven drug discovery market is projected to reach an estimated value of US$7.1 billion by 2030.

Breast cancer is a significant global healthcare issue, with the global market projected to reach US$73.68 billion by 2032. Insilico’s drug candidate shows promise for hormone-sensitive cancers, offering a potential new treatment approach.

Menarini, a pharmaceutical and diagnostics company operating in 140 countries, sees this collaboration as an opportunity to explore new treatment approaches and unlock transformative cancer therapies. Insilico, founded in 2014, has a pipeline of 31 programs targeting various diseases.

Insilico has a presence in the US, Greater China, Canada, and the Middle East. The company has raised over US$400 million through private markets and unveiled plans for an IPO in Hong Kong to fund clinical trials of drugs discovered and designed by AI. The IPO timeline has not been disclosed.

AI-driven drug discovery represents a significant advancement in the field, offering the potential for more efficient and effective development of new treatments. The partnership between Insilico Medicine and Menarini Group highlights the growing role of AI in the pharmaceutical industry and its potential to transform patient care.