Eli Lilly has expanded its engagement with Insilico Medicine, formalising a new AI drug discovery collaboration valued at up to $2.75 billion, further extending a relationship that began with an AI software licensing agreement in 2023. The latest agreement follows a $100 million partnership signed in November 2025 and is designed to broaden the company’s access to Insilico’s artificial intelligence-driven drug discovery platform. With this move, Eli Lilly continues to scale its AI capabilities through Insilico Medicine, reinforcing its long-term strategic direction in advanced therapeutics development.
The AI drug discovery collaboration includes an upfront payment of $115 million, alongside additional development, regulatory, and commercial milestone payments that could significantly increase the deal’s total value. As outlined in a March 29 release, the agreement also introduces tiered royalties tied to future product sales. Under the terms, Insilico will provide Lilly with an exclusive worldwide license covering the development, manufacturing and commercialization of selected preclinical oral therapeutics for undisclosed indications. Both companies will also jointly conduct R&D activities on assets identified by Lilly as part of the collaboration.
According to founder and CEO Alex Zhavoronkov, Ph.D., Insilico’s strategy is focused on addressing diseases with high unmet need. He highlighted the platform’s ability to “identify multi-purpose targets driving multiple diseases at the same time.” Established in 2014, Insilico was created as an alternative to animal testing, leveraging AI to evaluate how compounds interact with biological systems. Over time, the company has evolved into a recognised partner in molecule design, while also advancing its internal pipeline targeting fibrosis and longevity-related conditions.
The agreement builds on a series of recent developments for Insilico following its Hong Kong IPO at the end of 2025, which raised $293 million. The company has since entered multiple partnerships, including a potential $888 million agreement with Servier, a $120 million deal with Qilu Pharmaceutical, and a $66 million collaboration involving Parkinson’s assets with Hengrui Therapeutics. Meanwhile, Lilly has continued to expand its AI footprint, including a partnership with Nvidia in October aimed at building what it described as the “most powerful” supercomputer in pharma to accelerate molecule discovery and development timelines.
