Eli Lilly has signed a deal worth up to $2.75 billion with Hong Kong-listed AI pharmaceutical company Insilico Medicine, The Decoder reports on March 29, 2026. Insilico will receive $115 million upfront, with the remainder tied to regulatory and commercial milestones as well as license fees.
According to Insilico founder and CEO Alex Zhavoronkov, the company has developed at least 28 drugs using generative AI, with nearly half already in clinical trials. The two companies have been collaborating since 2023. Zhavoronkov told CNBC that Eli Lilly “actually outperforms Insilico in some areas of AI,” while Andrew Adams of Lilly described Insilico’s AI research as “a powerful complement” to its own clinical development capabilities.
The deal is among the largest ever between a major pharmaceutical company and an AI-driven drug developer. Previous partnerships in the space have typically been smaller, exploratory arrangements. The $2.75 billion total signals that major pharma players now view AI drug discovery as operationally mature enough to justify significant financial commitments.
Insilico is building its AI capabilities in Canada and the Middle East, with early drug development operations based in China. Eli Lilly is also separately working with a DeepMind subsidiary on AI-driven medicine, indicating the pharmaceutical industry is increasingly pursuing multiple AI partnerships rather than single exclusive arrangements.
