Billion-Dollar AI Deals Powering Antibody Design, Biologics, and Next-Gen Therapies

Recent advancements in artificial intelligence (AI) technology present opportunities to enhance the antibody design process. Several biotechnology companies have emerged, integrating machine learning methods with laboratory technologies. These companies generate data to assist in antibody design, analyze candidate antibodies, and perform rapid optimization. In the past year, numerous start-up biotech firms have attracted large pharmaceutical companies for collaboration in developing next-generation antibody drugs.

Biotech and Pharma Partner to Drive Novel Antibody Development

AI accelerates antibody design by generating data to assist in rapid iterative optimization. The advancement of biopharmaceutical technology drives innovation in antibody design methods. Traditionally, therapeutic antibody discovery has required extensive screening of numerous candidates generated by immunizing animals or using phage expression techniques. This process has often proved time-consuming and complex, sometimes failing to produce antibodies with the desired properties.

Given this vast area of opportunity, pharma companies are more regularly seeking out partnerships and collaborations to carve out their impact zone in the industry. For example, in December 2023, AstraZeneca and AbbVie signed collaboration agreements exceeding $200 million with Absci and BigHat Biosciences, respectively. These partnerships aim to combine AI-powered antibody design platforms with pharmaceutical expertise to expedite the development of novel antibody therapies.

For instance, AstraZeneca’s collaboration with Absci leverages the Integrated Drug Creation platform to optimize antibody candidates targeting specific tumors. Absci’s platform combines laboratory analysis to train machine learning models and generative AI tools for antibody design. AstraZeneca may pay Absci up to $247 million, which includes upfront payments, research funding, and milestone payments.

Similarly, AbbVie is collaborating with BigHat Biosciences to develop next-generation antibody therapeutics using the Milliner platform, focusing on oncology and neuroscience. This agreement could be worth up to $355 million, including an upfront payment of $30 million and future milestone payments.

New AI Use for Innovative Antibody Design—Proteins, NGS and Molecular Binding Applications

While these collaborations enhance established antibody design methods, expectations are rising for more transformative applications of AI—designing antibodies from scratch. In March 2024, David Baker’s research group reported using AI tools to design antibodies from scratch. Following this, Xaira, co-founded by Baker, secured over $1 billion in funding, becoming the second-largest biotechnology startup in history. Here, Xaira aims to enhance Baker’s RFdiffusion model, which can design protein drugs that bind to influenza molecules within weeks. Additionally, Xaira intends to utilize a newer version called RFantibody, capable of binding to both coronaviruses and influenza, which was recently published.

Similarly, Generate, founded in 2018, has raised nearly $750 million and plans to use diffusion models for next-generation biologics design. More specifically, Generate, a clinical-stage biotherapeutics company, recently announced that it has raised $273 million in Series C financing. This funding round welcomed several new investors, including Amgen, NVentures (NVIDIA’s venture capital arm), MAPS Capital (Mirae Asset Group), and Pictet Alternative Advisors. Company founder Flagship Pioneering and all Series B investors, such as a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), Fidelity Management & Research Company, funds and accounts advised by T. Rowe Price Associates, Inc., ARCH Venture Partners, and March Capital, also participated in the round.

Biopharmaceutical giants are increasingly partnering with companies dedicated to AI in antibody design, signaling a new era of AI-driven development. As these collaborations deepen, AI’s role in antibody design and biologics development will grow, potentially leading to innovative and effective treatments.

Sanofi and BioMap’s $1 Billion Bet in Target-Specific Antibodies & Biologics Design

In October 2023, Sanofi and BioMap announced a collaboration worth over $1 billion to develop AI models for biotherapeutic discovery. BioMap, founded in 2020, uses AI platforms to drive drug discovery. The partnership combines Sanofi’s biologics engineering expertise with BioMap’s xTrimo models for antibody design and optimization. Under this agreement, BioMap received a $10 million upfront payment and could earn over $1 billion in milestone payments. This collaboration highlights the growing role of AI in antibody design and broader biologics development. The biotechnology and pharmaceutical industries are increasingly relying on AI for innovation.

In May 2024, Sanofi, Formation Bio, and OpenAI announced a groundbreaking collaboration. This partnership aims to create AI-powered software that accelerates drug development and improves efficiency. Combining proprietary data and customized AI models, it offers tailored solutions throughout the drug development lifecycle. Sanofi plans to use this collaboration to access proprietary data for developing advanced AI models. OpenAI will provide its AI expertise, while Formation Bio contributes engineering resources and a tech-driven platform. This collaboration promises to transform drug development processes.

Thus, AI-driven antibody design accelerates drug discovery and innovation in biologics. As these partnerships deepen, the future of drug design is likely to change significantly. These deals show AI’s vital role in expediting antibody design, offering more transformative uses of AI in biologics. Consequently, AI is ushering in a new era of efficient and precise treatment options, benefiting patients globally.

Author

Bernice Lottering