By Fineline Cube 
Shenzhen-based QuantumPharm Inc., known as Xtalpi Inc. (HKG: 2228) disclosed that its wholly‑owned subsidiary Ailux has entered a multi‑year collaboration with Eli Lilly and Company (NYSE: LLY). The agreement is valued at USD 345 million, with upfront and near‑term cash payments running into the double‑digit‑million range.
Deal Highlights
| Item | Details |
|---|---|
| Parties | XtalPi’s AI‑driven antibody platform (Ailux) – Eli Lilly |
| Total Value | USD 345 million (up‑front + milestone payments) |
| Up‑Front Cash | Double‑digit‑million USD paid at signing |
| Scope | Access to Ailux’s engineering platform for bispecific antibody programs across multiple therapeutic targets; optional license of Ailux’s AI‑driven discovery engine for Lilly’s internal use |
| Historical Context | Lilly previously partnered with XtalPi in 2023 on a small‑molecule discovery program worth up to USD 250 million |
| Commercial Timeline | First target selection expected Q2 2026; IND‑enabling studies to begin Q4 2026 |
Strategic Rationale
- Accelerated Antibody Innovation – Ailux’s proprietary engineering platform integrates AI‑guided sequence design, rapid in‑silico affinity maturation, and high‑throughput expression, shortening bispecific antibody development cycles from years to months.
- Portfolio Diversification for XtalPi – Moving beyond small‑molecule discovery, the partnership expands XtalPi’s addressable market into the high‑margin biologics space, leveraging its AI core across modalities.
- Lilly’s Pipeline Enrichment – The collaboration provides Lilly with a ready‑made platform to generate next‑generation bispecifics for oncology, immunology, and rare diseases, complementing its existing antibody assets.
Financial & Market Impact
- Revenue Outlook – The upfront cash bolsters XtalPi’s cash runway into 2027, while milestone‑linked payments could lift FY 2026‑2028 revenue by ~ 15 % on a pro‑forma basis.
- Valuation Upside – Analysts have upgraded XtalPi’s price target by 9 % following the announcement, citing the “high‑value, AI‑enabled biologics” narrative.
- Competitive Landscape – The deal places XtalPi among a select group of AI‑driven biotech firms (e.g., Insilico, Exscientia) that have secured large‑scale antibody collaborations with top‑tier pharma.
Outlook & Next Steps
- Target Identification – Ailux will present up to four bispecific candidates to Lilly by the end of Q2 2026, covering oncology (e.g., HER2 × PD‑L1) and immunology (e.g., IL‑23 × IL‑17).
- Regulatory Path – Early‑phase IND filings are slated for 2027, with potential Fast‑Track designations for oncology programs.
- AI Platform License – Lilly retains an option to license Ailux’s AI engine for internal discovery, a decision expected in early 2026 after a six‑month pilot.
Forward‑Looking Statements
This brief contains forward‑looking statements regarding the partnership, development timelines, and financial impact. Actual results may differ due to clinical outcomes, regulatory decisions, and market conditions.-Fineline Info & Tech