Insilico Medicine (03696) saw its share price jump more than 11% during intraday trading. As of the time of writing, the stock is up 7% to HK$48.62, with a trading volume of HK$567 million. Recently, artificial intelligence has sparked a revaluation trend in the pharmaceutical sector.
A team of analysts from East Money, led by Tang Aijin, suggests that the re-pricing of the pharmaceutical industry by AI drug discovery is not about replacing wet-lab experiments, but rather about "amplifying validation throughput and reshaping R&D division of labor." The team argues that drug development has entered a phase of "embedded R&D," where the industry logic is shifting from conceptual promises to visible orders.
According to a calculation by Guosen Securities, the global compound annual growth rate (CAGR) of AI technology transaction volume from 2020 to 2025 reached 30.7%, significantly outpacing the overall growth of pharmaceutical transactions. Transaction volume from 2026 to date has already exceeded the total for 2025, indicating that AI drug discovery is transitioning from concept exploration into a period of demand validation.
Guotai Junan Securities notes that Insilico Medicine is a globally leading pioneer in AI-driven drug discovery. It leverages its proprietary generative AI platform, Pharma.AI, to enable an end-to-end drug R&D process. Multiple molecules generated by the Pharma.AI platform have already led to a series of licensing agreements with pharmaceutical companies both in China and overseas. Furthermore, MMAIGym is expected to drive the company's business model from project-based AI drug discovery collaborations to a platform-based monetization model encompassing "model training infrastructure, data/model licensing, and cloud-based access."
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