American pharmaceutical company Eli Lilly (LLY) has reached a $2.75 billion U.S. deal with Hong Kong-based Insilico Medicine (HKG: 3696) to bring drugs developed using artificial intelligence (A.I.) to the global market.
The agreement gives Insilico $115 million U.S. upfront, with the remainder subject to regulatory and commercial milestones being reached.
Insilico will also be able to earn royalties on future sales of A.I.-made medications, according to the two companies.
Insilico has developed at least 28 prescription drugs using generative A.I., with nearly half currently in clinical trials.
Eli Lilly and Insilico have worked together since signing an A.I.-based software licensing agreement in 2023.
Eli Lilly recently announced plans to invest $3 billion U.S. in China over the next decade. About 3% of the company’s revenue comes from China.
Insilico develops it’s A.I. outside of China, mostly in Canada. But it conducts preclinical drug development within China.
In addition to reducing research time, A.I. can synthesize molecules more quickly than those discovered using more traditional methods.
Insilico Medicine went public in Hong Kong last December and its stock is up more than 50% year-to-date.
LLY stock has declined 19% so far in 2026 to trade at $878.24 U.S. per share.
