Eli Lilly signs a $409 million research deal with AI-powered drug discovery startup Genetic Leap

Global pharmaceutical leader Eli Lilly has struck a research agreement with AI-driven drug discovery startup Genetic Leap. The deal is worth $409 million, according to an announcement by Genetic Leap on Thursday.

As part of the deal, Genetic Leap will utilize artificial intelligence and machine learning to uncover and develop new drug candidates, with a particular emphasis on RNA-based therapies.

“Eli Lilly has entered into a research deal with artificial intelligence-focused firm Genetic Leap for up to $409 million to develop genetic medicines, the latter said on Thursday,” Reuters reported.

Founded in 2017, Genetic Leap is at the forefront of AI-enhanced biotechnology, focusing on the discovery of novel drugs. The company’s pioneering methods have attracted considerable interest and led to collaborations with major pharmaceutical entities, including Eli Lilly.

Last year, we covered Eli Lilly after the pharma giant acquired Dice Therapeutics for $2.4 billion. Dice Therapeutics specializes in oral treatments for autoimmune diseases, a strategic move to boost Eli Lilly’s capabilities in immunology.

The trend of pharmaceutical companies acquiring biotech firms specializing in autoimmune diseases continues. In April, Merck made headlines by acquiring Prometheus Biosciences for $10.8 billion, a 75% premium over the share price at the time. Meanwhile, other pharmaceutical giants are keeping a close eye on Argenx, a European biotech company set to release key data next month.

Founded in 1876, Eli Lilly is renowned for its longstanding contributions to the pharmaceutical industry. The company was among the pioneers in insulin production and played a key role in the development of the polio vaccine. Eli Lilly is also known for its innovative drugs, including Prozac for depression, Cymbalta for pain management, and Zyprexa for treating psychosis.