By Fineline Cube 
Hangzhou Bio-Sincerity Pharma-Tech Co., Ltd. (SHE: 301096) and Xellar Biosystems announced a strategic cooperation agreement to integrate AI + organoid chip technology across the entire new drug R&D chain. The partnership aims to tackle efficiency and success rate challenges in innovative drug development through three core directions: co‑building an AI‑organoid R&D platform, establishing a drug incubation joint venture, and expanding therapies in oncology, autoimmune, neurology, and ophthalmology.
Partnership Overview
| Item | Detail |
|---|---|
| Companies | Hangzhou Bio-Sincerity Pharma-Tech (301096.SZ), Xellar Biosystems |
| Technology | AI + 3D‑Wet‑AI organoid chip platform |
| Focus Areas | Oncology, autoimmune diseases, neurology, ophthalmology |
| Structure | Strategic cooperation + joint venture for asset co‑creation |
| Core Objectives | Boost R&D efficiency, improve success rates, accelerate differentiated therapies |
Strategic Directions
① AI + Organoid Chip R&D Platform: Integrate Bio‑Sincerity’s drug R&D data with Xellar’s leading 3D‑Wet‑AI platform to create standardized, intelligent drug screening and validation solutions for industrial‑scale applications.
② Innovative Drug Incubation Joint Venture: Establish a jointly‑owned entity to efficiently incubate early‑stage projects with market potential, achieving strategic upgrade from technology empowerment to asset co‑creation.
③ Key Disease Area Expansion: Prioritize oncology, autoimmune diseases, neurology, and ophthalmology by combining Xellar’s precise disease models with Bio‑Sincerity’s pipeline to accelerate development of differentiated therapies.
Market Context: AI + Organoid Drug Discovery
Global AI Drug Discovery Market: $2.5 billion (2025), projected to reach $8 billion by 2030, growing at 26% CAGR. Organoid technology reduces preclinical attrition by 30‑40%, addressing a $30 billion annual R&D waste globally.
China Market Opportunity:
- Oncology: ¥120 billion drug market, 15% CAGR
- Autoimmune: ¥45 billion market, 12% CAGR
- Neurology: ¥35 billion market, 10% CAGR
- Ophthalmology: ¥25 billion market, 14% CAGR
Combined Addressable Market: ¥225 billion (US$31 B) across four therapeutic areas.
Technology Differentiation
Xellar’s 3D‑Wet‑AI Platform:
- High‑fidelity disease models: Patient‑derived organoids replicate human physiology better than 2D cell lines
- AI integration: Machine learning predicts drug responses, optimizing lead selection
- Throughput: Screens 10,000+ compounds per month vs. 1,000‑2,000 for traditional platforms
Bio‑Sincerity’s Data Advantage: Proprietary preclinical and clinical datasets from oncology and CNS pipelines provide training data for AI models.
Competitive Landscape
| Company | Technology | Focus | Stage |
|---|---|---|---|
| Bio‑Sincerity + Xellar | AI + organoid chip | Oncology, autoimmune, neurology, ophthalmology | Strategic partnership |
| Insilico Medicine | AI drug design | Broad therapeutic areas | Clinical‑stage candidates |
| Atomwise | AI virtual screening | Oncology, immunology | Discovery stage |
| Emulate | Organ‑on‑chip | Toxicology, disease modeling | Commercial platform |
First‑Mover Advantage: First integrated AI‑organoid incubation model in China, bridging technology platform to asset creation.
Financial Implications
Investment Plan:
- Joint Venture Capital: Estimated USD 30‑50 million initial commitment from both parties
- Platform Build‑out: USD 15 million for AI infrastructure and organoid standardization
- Project Funding: USD 5‑10 million per incubated asset
Revenue Model:
- Technology Licensing: Revenue from third‑party platform access
- Asset Co‑ownership: 50/50 profit split on joint venture projects
- Equity Upside: Potential IPO of joint venture in 2028‑2029 at $500‑800 million valuation
Forward‑Looking Statements
This brief contains forward‑looking statements regarding the partnership’s technology integration, joint venture formation, and pipeline acceleration. Actual results may differ materially due to R&D challenges, regulatory hurdles, and market adoption of AI‑driven drug discovery.-Fineline Info & Tech