Insilico Medicine CEO Alex Zhavoronkov on AI Drug Discovery, Geopolitics, and the Future of Biotech Innovation

Insilico Medicine CEO on Business Strategy and AI in Drug Discovery

Alex Zhavoronkov, Founder and CEO of Insilico Medicine, shares insights on the company’s approach to business and the potential of AI-driven drug discovery. The discussion took place during the “JPMorgan Global China Summit” in Shanghai.

The US-China Trade War’s Effect on Biotech

The biotech sector has found itself entangled in the US-China trade tensions, raising concerns about its reputation and investment prospects. Zhavoronkov prefers to avoid political commentary but emphasizes that life itself, a fundamental human right, is now caught in this debate.

He points out that long-standing collaborative ties between countries are under threat due to regulatory challenges, research restrictions, and emerging ideological divides. This confrontational attitude worries him deeply.

To mitigate risks, Insilico Medicine has diversified its operations. For example, their generative AI development happens in Canada, and some critical technologies are compartmentalized across different regions, including the Middle East, to reduce geopolitical exposure.

China’s Role in Innovation

China is experiencing a surge in innovation, backed by significant academic focus and scientific output. Chinese researchers are publishing many high-quality papers and contributing original ideas, moving beyond incremental improvements to genuine breakthroughs.

AI integration into biotech is particularly encouraging. Considering that only about 50 drugs get approved annually worldwide—with roughly seven being truly innovative—the involvement of China, India, and other countries is vital for advancing global health and extending human life.

Zhavoronkov stresses that the priority should be global health advancement rather than economic rivalry.

AI’s Contribution to Drug Development

While many pharmaceutical companies use AI in parts of their research and development, fully AI-developed drugs have yet to reach the market. AI currently helps generate novel targets and molecules, speeding up early-stage development and reducing costs.

Traditional drug development can take over four years just to reach clinical trials. Using generative AI, Insilico Medicine has cut this timeframe dramatically, sometimes to as little as nine months. However, clinical trials still require lengthy, rigorous processes to ensure patient safety, extending the timeline by nearly a decade.

Zhavoronkov acknowledges that deep learning and AI in drug discovery are still relatively new. Despite previous setbacks, he expects AI-developed drugs to emerge within the next five to six years, with Insilico actively advancing over 40 internal programs.

Insights on the IPO Process

Having been involved in multiple IPOs in Hong Kong, Zhavoronkov refrains from commenting on financial specifics. He highlights that Insilico Medicine is currently in its strongest position and optimistic about the company’s future to accelerate drug development efficiently and cost-effectively.

For executives and strategists, this approach illustrates the importance of geographic diversification, investment in AI-driven innovation, and patience in aligning technological advances with regulatory realities in biotech.