Insilico and Eli Lilly strike $2.75B AI drug development deal
Insilico Medicine and Eli Lilly have signed a commercialization agreement worth up to $2.75 billion, marking a significant bet on AI-driven drug discovery. The deal centers on using artificial intelligence to identify and develop new compounds, with Lilly providing funding and development expertise.
For IT and development teams, the partnership underscores how generative AI and LLM systems are moving from research into production pharmaceutical workflows. Insilico's platform uses machine learning to predict molecular properties and screen candidates at scale-work that traditionally required months of laboratory testing.
The deal structure ties payments to development milestones, meaning Insilico must deliver usable compounds for Lilly to advance toward clinical trials. This performance-based approach is common when pharma companies fund biotech AI platforms.
FDA clears Butterfly Network's AI ultrasound pregnancy tool
The FDA has cleared Butterfly Network's AI-powered ultrasound software for pregnancy assessment. The tool analyzes ultrasound images to identify anatomical features and flag potential concerns, reducing the time clinicians spend on image interpretation.
The clearance reflects growing FDA acceptance of AI software as a medical device. Butterfly's system required validation against standard ultrasound protocols and demonstrated equivalent or better accuracy than manual review in specific use cases.
For development teams building medical AI, the approval signals that the FDA will clear AI diagnostic tools if manufacturers provide sufficient training data, validation studies, and documentation of how the algorithm makes decisions.
Regulatory and pharma developments
Merck's cholesterol drug met its primary goal in a head-to-head trial against a competitor. The result positions the drug for potential market entry in a crowded therapeutic category.
Novartis agreed to pay up to $2 billion for Excellergy, a US biotech firm. The acquisition gives Novartis access to Excellergy's technology platform and pipeline.
Sanofi reported disappointing Phase 3 data for an OX40-targeting drug in eczema and identified a second case of Kaposi's sarcoma in trial participants. The setback raises questions about the drug's safety profile as the company decides next steps.
Otsuka acquired Transcend, a private neuropsychiatry biotech, for $700 million upfront. The deal gives Otsuka access to Transcend's drug candidates targeting neuropsychiatric conditions.
Medtech approvals and updates
Medtronic received FDA clearance to expand its surgical robotic system into cranial and ear, nose, and throat procedures. The approval broadens the system's addressable market beyond its original orthopedic applications.
Stryker restored most manufacturing operations after a cyberattack disrupted production. The company did not disclose the attack's scope or whether customer data was compromised.
Philips won FDA clearance for an imaging device developed with Edwards Lifesciences. The device integrates imaging and hemodynamic monitoring for cardiac procedures.
Policy and workforce
The White House is holding private meetings with pharmaceutical executives to build support for a drug pricing bill. The administration is seeking industry buy-in before advancing legislation.
NIH restrictions on foreign research partnerships significantly affected one in four U.S. scientists, according to a new survey. The limitations have disrupted collaborations and delayed research projects at major institutions.
Health care jobs growth is stagnating at the largest for-profit hospital systems, suggesting consolidation and automation are reducing hiring. Smaller and nonprofit health systems continue adding staff at faster rates.
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