Insilico Medicine has entered into a strategic collaboration agreement with Takeda to deploy its AI-based Pharma.AI platform in the discovery and development of drug candidates.

Under the agreement, Insilico will lead efforts using AI to identify molecules that meet predefined scientific and early development criteria.

Takeda will take the lead in advancing selected candidates through clinical validation, using its global development capabilities.

The partnership aims to identify drug candidates with the potential for clinical differentiation across Takeda’s main therapeutic areas.

By applying advanced AI models in early-stage drug design, both companies aim to enhance the selection process for candidate molecules and focus on achieving criteria related to efficacy and safety.

Insilico will receive about $60m in fees, near-term payments, and milestones upon project initiation.

The deal also includes the possibility of further preclinical, clinical, commercial, and sales milestone payments, which could bring the total value up to approximately $600m.

Insilico is also set to receive tiered royalties on any future sales resulting from the collaboration.

The agreement gives Takeda exclusive global rights to develop, manufacture, and commercialise new therapeutics that emerge from the drug discovery programme.

Insilico Medicine founder, CEO and CBO Alex Zhavoronkov said: “I am excited to partner with one of the top leaders in the biopharmaceutical industry with massive competence in generative AI.

“As we deepen the integration of generative AI into every stage of the pharma value chain, I believe the future of pharmaceutical superintelligence has the potential to deliver the highest quality and differentiated drugs. This is a fundamental step on our journey toward extension of healthy productive life.”

Earlier this year, Insilico Medicine announced several AI drug discovery collaborations with China Medical System (CMS) across several projects in central nervous system (CNS) and autoimmune diseases.