Exscientia Signs $1 Billion Worth AI Deal to Boost BMS’ Drug Discovery Pipeline

On May 19th, UK-based Exscientia announced a new collaboration with Bristol Myers Squibb to use its AI-driven drug discovery platform to develop small molecule therapeutic candidates. The multi-year deal, which aims to develop compounds for multiple targets and disease applications, has the potential to exceed $1.2 billion. The deal comes just a day after BMS made a $1.56 billion oncology deal with Agenus Inc.

AI is the concept of using software to analyze and solve large and complex data sets. Exscientia specializes in using it for target discovery, molecule design, and data interpretation. Using their CentaurAI platform, they reframe drug discovery as a learning project, which allows them to reduce the number of compounds to test and obtain a candidate molecule in less than a year.

In April, their A2a receptor antagonist became the first AI-designed immune-oncology therapeutic to enter Phase 1 clinical trials for the treatment of solid tumors. This a joint venture between Exscientia and Evotec. Additionally, Exscientia offers its platform as a service and designs therapeutic candidates for other companies. Two of its compounds for psychiatric disorders are currently in Phase 1 clinical trials in collaboration with Sumitomo Dainippon Pharma Co., Ltd. This includes treatment for Alzheimer’s disease psychosis.

AI technology holds so much potential that back in March, Exscientia raised $100 million during its Series C financing. A month later, Exscientia secured $225 million in a Series D and an additional $300 million in discretionary funds. This included investments from notable investors such as BlackRock and SoftBank Vision Fund, as well as existing investors like Novo Holdings, Evotec, Bristol Myers Squibb, and GT Healthcare Capital.

BMS Deal

Exscientia and BMS have been collaborating since 2019. The deal was originally set up with Celgene prior to its acquisition by BMS. Under the terms of the deal, Exscientia will oversee the designing and testing of drug candidates for oncology and immune diseases.

The agreement includes an upfront cash payment of $50 million, and up to $125 in near to mid-term milestones. The deal could bring more than $1.2 billion for Exscientia if clinical, regulatory, and commercial goals are met. Additionally, Exscientia is eligible to receive royalties tied to net sales of marketed products that result from this collaboration.

Andrew Hopkins, CEO of Exscientia, commented, “We are proud that Bristol Myers Squibb wants to build on our work together with this expanded collaboration and believe it 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.”

Related Article: BMS Wins Agenus’ anti-TIGIT Asset to Bolster I-O Pipeline

Author

Daniel Ojeda