Bristol Meyer ties up with AI pharmatech Exscientia

Bristol-Myers Squibb, the Big Pharma company, has entered into a drug discovery collaboration worth $1.2 billion, with artificial intelligence (AI) pharmatech company, Exscientia.

The agreement includes up to $50 million in upfront funding, up to $125 million in near to mid-term potential milestones, and additional clinical, regulatory and commercial payments that take the potential value of the deal beyond $1.2 billion. Exscientia will also receive royalties on net sales of any marketed drug products resulting from the collaboration.

The biotech industry is increasingly using AI to deploy targeted drug molecules to test the efficacy of drugs to tackle illnesses ranging from cancer to heart disease.

Bristol Myerrs Squibb

Headquarters of Bristol-Myers Squibb Germany in Munich, Germany.

Andrew Hopkins, CEO of Exscientia, commented, “…this expanded collaboration …speaks to the strength and promise of Exscientia’s AI technologies and drug discovery expertise. We’re excited to work with such an experienced collaborator as Bristol Myers Squibb to develop the best possible medicines for patients.”

The process of getting any drug to the market is long and tedious and can take a decade sometimes and the average cost can be in the vicinity of $2,6 billion, according to the Tufts Center for the Study of Drug Development in Boston. “By the end of this decade, we think there’s a strong argument that all small molecule drugs should be being designed using artificial intelligence,” Hopkins said.

Exscientia’s already had an existing collaboration with Celgene prior to Celgene’s acquisition by Bristol Myers Squibb. Exscientia’s AI-design drug discovery platform, will be used to deliver optimized compounds made of complex design faster and more effectively than traditional drug discovery.

Last year, Exscientia became the first company to take a molecule designed by AI into human clinical trials. Its experimental Alzheimer’s treatment entered phase 1 trials last week. However, medical regulators have not yet approved a drug that was designed using AI. “The BMS collaboration is further validation that the technology really is focusing now not just on discovering molecules, but really focusing on delivering new medicines to clinic,” Hopkins said.

Pharma companies are pouring serious money into AI-driven molecular medicines. Investments have gone up by 30 percent in 2020 compared to 2019, according to biotech analysis company Deep Pharma Intelligence.

Exscientia raised $525 million in series D funding from SoftBank’s Vision Fund 2 in April. It stated that the further it develops its clinical trials and finds success, the value of the deal will improve beyond $1.2 billion after four years.

Exscientia has entered into agreements with a number of companies, including French drugmaker Sanofi and German pharma group BayerPharma, multiple emerging biotech companies and the Gates Foundation. Its Alzheimer’s drug was developed with Japanese company Sumitomo Dainippon.

Rupert Vessey, President of Research & Early Development at Bristol Myers Squibb said, “Rapid discovery of molecules that can enter the clinic in a timely manner could positively impact our work in discovering treatments for areas of unmet medical need.”

Christy Gren
Christy Gren is an Industry Specialist Reporter at Industry Leaders Magazine she enjoys writing about Unicorns, Silicon Valley, Startups, Business Leaders and Innovators. Her articles provide an insight about the Power Players in the field of Technology, Auto, Manufacturing, and F&B.

Recent Posts

Visa takes over Swedish fintech Tink in €1.8bn deal

Visa takes over Swedish fintech Tink in €1.8bn deal

: Visa is committed to perform better in the field of open banking sector by combining its networks and Tink’s modern technologies.
3 hours ago
BP Invests $7 million in Electric Vehicle Charging Technologies

BP Invests $7 million in Electric Vehicle Charging Technologies

Investment in IoTecha is linked with BP’s intention to produce over 70,000 public EV charging points globally by 2030
4 hours ago
Elon Musk’s Starlink satellite internet set to cover the globe soon

Elon Musk’s Starlink satellite internet set to cover the globe soon

Starlink, the satellite internet unit of Elon Musk’s SpaceX, will most likely be able to provide global coverage by September, according to the company’s president Gwynne S
1 day ago
At the next Krispy Kreme IPO, the donut maker aims to raise nearly $4 billion

At the next Krispy Kreme IPO, the donut maker aims to raise nearly $4 billion

Krispy Kreme, the popular donut chain, aims raise roughly $4 billion as it makes one of the biggest IPO debuts at the NYSE.
1 day ago
Panasonic hopes Blue Yonder acquisition will improve its software woes

Panasonic hopes Blue Yonder acquisition will improve its software woes

Most Japanese major companies, which at one time were leaders in consumer electronics, are struggling to find their feet in a world that has moved to digital software. Electronics
2 days ago
Ikea and Rockefeller Foundations to raise $10 billion for renewable energy projects in poor countries

Ikea and Rockefeller Foundations to raise $10 billion for renewable energy projects in poor countries

The Ikea and Rockefeller foundations are jointly launching a $10 billion fund to promote small-scale renewable power projects in developing nations. Both
3 days ago