Exelixis to license Insilico AI-designed cancer drug

Exelixis Inc. (EXEL) is licensing the global rights to develop and commercialize an investigational cancer treatment that was derived from Insilico Medicine's generative artificial intelligence drug-discovery platform, the companies announced Tuesday. The cancer therapy, ISM3091, is an inhibitor of USP1 and is being studied for its potential to treat BRCA-mutant tumors, which include forms of ovarian, prostate and breast cancer. The deal gives Insilico an upfront payment of $80 million, expected in the third quarter of this year, and eligibility for future development, commercial and sales-based milestone payments. The agreement also gives Exelixis a license for other USP-1 targeting compounds, the companies said in a release. Exelixis shares gained 0.8% premarket on Tuesday and are up 37% in the year to date, while the S&P 500 has gained 16.9%.

-Eleanor Laise

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09-12-23 0840ET

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