Insilico raises $110m for AI-designed drug pipeline

Insilico Medicine has raised $110 million in Series E funding for its artificial intelligence-powered drug discovery operations, shortly after reporting encouraging results with its lead drug for idiopathic pulmonary fibrosis (IPF).

The new round, led by a private equity fund of Asia's Value Partners Group, will be used to advance its pipeline and develop new AI models and algorithms for its discovery platform, as well as to increase its deployment of lab automation.

Meanwhile, the US and Hong Kong-based company told Bloomberg that it may be ready to press the button on an initial public offering, likely on the Hong Kong exchange, after seeing its valuation head north of $1 billion.

It is the first financing carried out by Insilico since it raised $60 million in a fourth round that closed in 2022. Since then, lead candidate rentosertib (formerly known as ISM001-055) has moved from phase 1 and into a phase 2a study, and it now has regulatory approval to start clinical testing of 10 candidates in total.

Topline data from that study was reported in November and revealed that rentosertib was well-tolerated and achieved dose-dependent improvements in forced vital capacity (FVC) – a key measure of lung function – after 12 weeks of dosing. Current treatments, including antifibrotic drugs, can slow disease progression, but do not stop or reverse it, leaving a significant unmet need for more effective, disease-modifying therapies.

The drug was developed using generative AI (GenAI) and inhibits TNIK (Traf2- and NCK- interacting kinase), a novel drug target that Insilico believes plays a key role in the development of fibrosis (scarring) in tissues. It is the first investigational drug in which both the biological target and the therapeutic compound were discovered using GenAI, according to Insilico.

Chief executive Alex Zhavoronkov said the new round will "accelerate the advancement of our drug pipeline and AI platform, further solidifying Insilico's leadership in this rapidly evolving sector."

The company also says that its AI platform – Pharma.AI – is becoming more speedy and efficient and can now identify and nominate a preclinical candidate within 12 to 18 months, compared to the two-and-half to four years needed with traditional drug discovery methods.

That potential has led to out-licensing deals with Fosun Pharma, Exelixis, and Menarini, collectively valued at over $2.1 billion, and another $1.4 billion in partnerships with the likes of Sanofi, Saudi Aramco, and Therasid Bioscience.