Insilico Medicine and Tenacia Biotechnology have expanded their AI-driven CNS collaboration, adding a second discovery-stage program targeting an undisclosed biological target implicated in neurological disease. The expanded agreement carries additional deal value of up to USD 94.75 million. Cambridge, Massachusetts-based Insilico Medicine (3696.HK), a clinical-stage AI biotechnology company listed on the Hong Kong Stock Exchange, will deploy its Pharma.AI generative AI drug discovery platform to design a differentiated small-molecule candidate. Hong Kong-based Tenacia Biotechnology, a commercial-stage biopharmaceutical company founded in 2022 by Bain Capital, will fund the work and receive rights to the resulting candidate.
Under the expanded terms, Insilico is eligible to receive near-term and milestone payments from Tenacia totaling up to USD 94.75 million. The specific breakdown between upfront, development, regulatory, and commercial milestones was not disclosed. Royalty rates, profit-sharing arrangements, and geographic rights allocation were not detailed in the announcement.
Deal context
The expansion builds on an initial collaboration launched in March 2025, in which the two companies combined Insilico's Pharma.AI platform with Tenacia's CNS-focused scientific expertise and proprietary data assets. That first program focused on designing small-molecule inhibitors with blood-brain barrier permeability for central nervous system treatment and is described as progressing on schedule. The biological target for both programs remains undisclosed.
The second program aims to generate a molecule with a distinct pharmacological profile against the same target, advancing it to preclinical candidate nomination. No candidate molecule has been identified or nominated under the expanded agreement. The program is entirely at the discovery stage, with no IND-enabling studies, clinical trial registrations, or regulatory designations reported.
Insilico's Pharma.AI platform integrates three modules: PandaOmics for target identification, Chemistry42 for generative molecular design, and Inclinico for clinical trial outcome prediction. The platform uses reinforcement learning, generative adversarial networks, and variational autoencoders to design novel molecular structures rather than screen existing compound libraries. Insilico's lead internal asset, rentosertib (ISM001-055), a TNIK inhibitor for idiopathic pulmonary fibrosis, reported positive Phase IIa topline results in November 2024, with data published in Nature Medicine.