INSILICO (03696) saw its shares rise more than 10% during morning trading. At the time of writing, the stock was up 10.71% to HK$62, with a trading volume of HK$130 million. The surge follows the recent announcement of a significant collaboration between the company and Eli Lilly. Under the agreement, Eli Lilly has secured exclusive rights to commercialize a GLP-1 diabetes drug developed using INSILICO's AI technology. The deal includes an upfront payment of $115 million and has a total potential value of up to $2.75 billion. As part of the partnership, Eli Lilly will also gain access to INSILICO's artificial intelligence platform. The two companies plan to jointly utilize the platform's "AI engine" to accelerate the discovery and development of new drugs across multiple therapeutic areas. The collaboration has sparked market speculation about a potential acquisition of INSILICO by Eli Lilly. However, on the afternoon of March 30, INSILICO's founder and CEO Alex Zhavoronkov denied such rumors in an interview. He stated, "The company's current valuation is relatively low, and at this stage, we prefer to maintain our independence. There is no possibility of the company being acquired by a pharmaceutical firm." He further noted that while global tech companies like Google are expanding into AI-driven drug discovery, the field requires extensive experimental validation. This, he explained, is why INSILICO is focusing its efforts in China, where the infrastructure and policy support are unique.
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