By Fineline Cube 
Insilico Medicine (HKG: 3696), a China‑based generative AI‑driven biotech, announced a strategic partnership with Qilu Pharmaceutical Co., Ltd. to develop small molecule inhibitors for cardiovascular and metabolic diseases using Insilico’s proprietary Pharma.AI platform.
Partnership Structure & Financial Terms
| Item | Detail |
|---|---|
| Companies | Insilico Medicine (3696.HK) / Qilu Pharmaceutical Co., Ltd. |
| Technology | Insilico’s self‑developed Pharma.AI platform |
| Focus Area | Small molecule inhibitors for metabolic and cardiovascular diseases |
| Responsibilities | Insilico: drug design and optimization; Qilu: development and commercialization |
| Total Deal Value | Up to HKD 931 million (USD 120 million) |
| Milestone Payments | Development and sales milestones |
| Royalties | Tiered single‑digit percentage on future net sales |
| Deal Type | Licensing and collaboration agreement |
Technology Platform & Innovation
- Pharma.AI: Insilico’s generative AI platform integrates target identification, molecule design, and clinical trial prediction capabilities
- Design‑Build‑Test‑Learn: AI‑driven iteration accelerates discovery of novel small molecule candidates with optimized properties
- Metabolic Focus: Addresses high‑unmet‑need indications including diabetes, obesity, and cardiometabolic disorders where traditional R&D has high failure rates
- Strategic Validation: Partnership with established pharma player Qilu validates Insilico’s AI platform for real‑world drug development
Market Impact & Strategic Context
- China AI Drug Discovery Market: Valued at ¥12 billion (~US$1.7 billion) in 2025, growing at 30% CAGR
- Platform Monetization: Deal provides Insilico with non‑dilutive funding and recurring royalty stream, diversifying revenue beyond internal pipeline
- Qilu’s Strategy: Access to cutting‑edge AI technology accelerates Qilu’s entry into metabolic disease innovation, complementing its generic and specialty pharma portfolio
- Competitive Position: Positions Insilico as a leading AI‑enabling partner for Chinese pharma, competing with global AI drug discovery players
- Next Steps: Initial candidate nomination expected within 12–18 months; IND‑enabling studies to follow
Forward‑Looking Statements
This brief contains forward‑looking statements regarding development timelines, milestone achievements, and royalty revenue potential. Actual results may differ due to technical challenges, clinical trial outcomes, and market adoption of AI‑discovered drugs.-Fineline Info & Tech