Insilico Medicine (HKEX: 03696) and China Medical System Holdings Limited (CMS, HKEX: 867; SGX: 8A8) have announced an additional drug development collaboration targeting a mass-market CNS indication, with Insilico eligible to receive up to approximately RMB 1.2 billion (around USD 177 million) in milestone payments plus royalties on net sales. The deal builds on the parties’ initial February 2026 agreement, adding a new co-development program to the existing framework.

The scientific basis for the new program is a novel mechanism of action identified by PandaOmics, Insilico’s proprietary AI-powered target discovery platform, which integrates multi-omics data to identify biologically tractable targets and disease pathways. No named compound, development code, or molecular target has been disclosed. The collaboration structure mirrors the initial February agreement: Insilico contributes its Pharma.AI platform suite, including PandaOmics for target identification and Chemistry42 for generative small-molecule design, while CMS provides clinical development systems, regulatory submission expertise, and a broad commercialization network. The two parties will jointly advance the program from discovery through IND-enabling studies, with CMS assuming primary responsibility for clinical execution and commercialization.

As noted, the July 2026 announcement is the second Insilico–CMS program to be made public and following the initial February 2026 collaboration, which covered at least two co-development programs spanning CNS and autoimmune diseases, with R&D funding support of up to several tens of millions of HKD per program. The current announcement adds at least one further CNS program, bringing the disclosed total to three or more programs across the partnership.

Insilico has been among the most active AI drug discovery platform licensors. In the first half of 2026 alone, the company reported revenue of approximately USD 102.5 million to USD 106.5 million, a year-on-year increase of roughly 272% to 287%, driven substantially by out-licensing and co-development agreements. Other 2026 deals include a collaboration with Eli Lilly carrying up to USD 2.75 billion in potential milestones and a USD 115 million upfront payment, and a collaboration with South Korea-based SK Biopharmaceuticals for neuroimmune CNS disorders worth up to USD 2.5 billion in total potential value. The CMS CNS deal is comparatively modest in disclosed headline value but is notable as a repeat transaction with the same partner within a compressed timeframe, suggesting the initial collaboration has progressed sufficiently to support an incremental program commitment.

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