13 AI Drug Discovery Companies to Watch in 2026

AI drug discovery has moved from platform pitches to clinical tests. One recent sign: in October 2026, Iambic Therapeutics raised $150 million in a Nasdaq IPO, saying in its filing that its AI approach can "disrupt legacy drug discovery paradigms." Investors and pharma partners increasingly judge companies like Iambic on clinical data rather than on technology alone.

Since our previous update, the evidence has cut both ways. Generate:Biomedicines raised $400 million on Nasdaq, and Insilico Medicine completed Hong Kong's largest biotech IPO of 2025. Insilico's rentosertib became the first generative-AI-discovered drug to enter Phase 3, and Generate's lead antibody is in pivotal asthma trials. Meanwhile, Neumora's lead drug failed two Phase 3 studies, a reminder that AI-enabled discovery does not remove clinical risk.

These companies are a small slice of a much larger field. According to our internal database, more than 500 startups and scaleups use machine learning and generative AI in drug discovery, from point tools for target finding or drug repurposing to end-to-end platforms that run from hypothesis to clinical trial design. In earlier work we reviewed a decade of AI implementation and the novelty of targets pursued by AI-discovered molecules. Our conclusion then still holds: the field is early, with setbacks and inflated expectations alongside real gains.

Below we profile 14 notable AI-enabled drug developers, most of them clinical-stage and publicly traded, with the latest milestones for each.

Disclaimer: This post is not investment advice of any kind; it is for informational purposes only. Neither WTMB Research & Media, S.L. nor the authors of this post endorse or recommend any particular stocks or investment opportunities. Consult relevant professional service providers for any investment decisions at all times.

AI drug discovery companies on public markets, newest listing first (updated October 2026)

Gross IPO proceeds in US dollars; Hong Kong listings converted from HKD at the time of the offering. Absci, Relay and Schrödinger figures include the underwriters' over-allotment option. Owkin is privately held and has not listed.

Absci (NASDAQ: ABSI)

Absci is a U.S.-based biotech headquartered in Vancouver, Washington, that applies generative models and an integrated wet lab to design therapeutic antibodies de novo. The company's approach conditions models on antigen structure and epitope choice, then proposes CDR sequences "zero-shot," followed by high-throughput experimental validation.

Its platform combines sequence- and structure-aware AI models with multiplexed build–measure loops, alongside a "reverse immunology" workflow that reconstructs antibodies from diseased tissues to infer targets and seed sequences for immuno-oncology.

Absci has narrowed its clinical focus to ABS-201, an anti-PRLR antibody. Its first clinical program, ABS-101 (anti-TL1A, inflammatory bowel disease), showed an extended half-life and a favorable safety profile in interim Phase 1 data, but Absci decided not to run later-stage trials internally and is exploring partnering or out-licensing instead.

ABS-201's Phase 1/2a HEADLINE trial in androgenetic alopecia began in December 2025. In June 2026, Absci reported positive interim Phase 1 data: the antibody was well tolerated across all four single-ascending-dose cohorts, with no serious adverse events, and an estimated half-life of at least 65 days supported infrequent dosing. The same month, Absci raised $100 million and received a strategic investment from Eli Lilly. Interim proof-of-concept data are expected in the second half of 2026, with full proof-of-concept data in early 2027. Absci is also developing ABS-201 for endometriosis, with a Phase 2 trial expected to start in Q4 2026. Another preclinical immuno-oncology program (ABS-301) originated via the reverse-immunology pipeline.

Current partner work spans AstraZeneca on oncology antibody design under a deal valued up to $247 million, Almirall on dermatology programs (expanded in August 2025 to a second target), Twist Bioscience on joint AI-enabled antibody discovery workflows, and AMD with Oracle on an OCI-based compute collaboration to scale AI model training and molecular simulation workloads.

AbCellera (NASDAQ: ABCL)

AbCellera is a U.S./Canada-based biotech company (headquartered in Vancouver) that uses AI, single-cell analysis and deep sequencing to discover therapeutic antibodies. It went public in December 2020 via an IPO that raised approximately US$555.5 million.

Its platform screens millions of single B cells using microfluidics and high-throughput assays to measure secreted antibody function in real time. Paired heavy and light chain (VH/VL) sequences are recovered from each cell, preserving natural diversity. This enables rapid identification of antibodies with specific functional properties, such as affinity, specificity, cross-reactivity, and blocking activity, against complex targets including GPCRs, ion channels, and other multipass membrane proteins. Computational tools then model and optimize lead candidates for developability, manufacturability, and potency.

AbCellera's lead program, ABCL635, has delivered positive Phase 2 data. ABCL635 is a non-hormonal NK3R antagonist antibody for moderate-to-severe menopausal hot flashes and the first program from the company's GPCR and ion channel platform. In August 2026, a single 600 mg subcutaneous dose cut hot flash frequency by 83% at week 4, versus 33% for placebo, in a 92-patient trial. It was well tolerated, with no serious adverse events.

The second internal program, ABCL575 (OX40L), completed Phase 1 dosing, with top-line data expected in Q4 2026. AbCellera plans to partner it rather than develop it past Phase 1. In July 2026, AbCellera announced a collaboration with Vertex Pharmaceuticals on multispecific T-cell engagers for autoimmune diseases.

Read also: 10 Companies Applying AI for Biologics Discovery

BioAge Labs (NASDAQ: BIOA)

BioAge Labs is a clinical-stage biotech using machine learning on longitudinal human multi-omics and health records to find targets for metabolic aging. The company went public in September 2024 with gross proceeds of ~$198M and raised a further ~$115M in an upsized public offering in January 2026.

BioAge is building a data-first platform for metabolic aging. The company follows healthy people over time, coupling longitudinal multi-omics (transcriptomics, proteomics, metabolomics, etc.) with repeated measures of physical, cognitive, and functional performance to map "healthspan trajectories" as they shift toward disease. AI/ML models mine these datasets to surface drug targets across known and novel aging pathways; hits are validated in-house using translational studies in naturally aged mice. In June 2025, BioAge expanded its platform via a collaboration with Age Labs to deeply profile >17,000 samples from 6,000+ HUNT Biobank participants, data to which BioAge has exclusive drug-discovery rights.

The lead candidate, BGE-102, is an oral, brain-penetrant NLRP3 inhibitor now being developed for cardiovascular risk and retinal disease. BioAge reported positive topline Phase 1 data in April 2026, including a 60 mg once-daily cohort in participants with obesity and elevated inflammation; the drug was well tolerated across all doses. The first participant was dosed in QUELL-CV, a Phase 2 dose-ranging trial measuring inflammatory and cardiometabolic biomarkers, in June 2026, with topline data expected in the second half of 2026. A second trial, QUELL-DME in diabetic macular edema, is expected to read out in mid-2027. BioAge also plans to file its first IND for an APJ program by year-end 2026.

In December 2024, BioAge signed a multi-year deal with Novartis, valued at over $500 million, to use its longitudinal aging datasets to find and validate drug targets for aging-related diseases. Other collaborations include a Lilly ExploR&D agreement for antibody development in metabolic aging and an option with JiKang on an APJ nanobody.

Read also: Aging-Focused BioAge Posts Q2 2025 Results: Advances Metabolic Pipeline and Expands Longevity Data Platform

Generate:Biomedicines (NASDAQ: GENB)

Generate:Biomedicines was founded in 2018 by Flagship Pioneering and is headquartered in Somerville, Massachusetts. The company applies generative AI and biological engineering to create novel therapeutic proteins. In February 2026, it raised $400 million in an IPO at $16 per share and began trading on the Nasdaq Global Select Market on February 27, 2026.

The heart of its technology is the Generate Platform, which integrates machine learning, high-throughput molecular build/measure loops, and structural determination at scale. The platform works as a continuous cycle: (1) Generate – algorithms design protein sequences de novo or optimize existing scaffolds; (2) Build – sequences are synthesized and expressed; (3) Measure – functional and biophysical assays quantify binding, specificity, immunogenicity, manufacturability; (4) Learn – data feed back into models to improve future design. The company says this approach opens hard-to-drug modalities and lets it optimize developability, dosing interval and immunogenicity from the start.

Generate's lead candidate is now in Phase 3. GB-0895 (proposed INN golukibart) is a long-acting anti-TSLP antibody designed for twice-yearly dosing. The replicate Phase 3 SOLAIRIA-1 and SOLAIRIA-2 studies in severe asthma are recruiting across six global regions, and Phase 1b data in COPD were presented at ERS 2026. In oncology, the first patient cohort has been enrolled in a Phase 1 study of GB-4362, an MMAE neutralizer designed to reduce antibody-drug conjugate toxicity, which has FDA Fast Track designation.

Generate has strategic deals with Amgen, valued at up to $1.9 billion, and with Novartis, reportedly exceeding $1 billion, both focused on AI-generated biologics.

Read also: Flagship's Generate Biomedicines Eyes IPO Amid Reopening Biotech Market Window

Iambic Therapeutics (NASDAQ: IAM)

Iambic is a San Diego-based biotech founded in 2019 by Tom Miller (CEO) and Fred Manby (CTO). It priced a $150 million IPO on October 14, 2026, selling about 9.4 million shares at $16, and began trading on Nasdaq under "IAM" on October 15. Private investors had already provided $462 million, and NVIDIA is among its backers.

Iambic's platform pairs large-scale AI with automated chemistry and biology. Its models include NeuralPLexer, a generative model for biomolecular structure prediction, and Enchant, a multimodal model that predicts preclinical and clinical drug properties from limited clinical data. Automated plate-based workflows synthesize and test hundreds of compounds per program each week. The company calls this approach "molecular superintelligence."

Its lead drug, IAM1363, is an oral, brain-penetrant HER2 tyrosine kinase inhibitor with more than 5,000-fold selectivity over EGFR. It went from program start to first human dose in under two years. At ESMO 2025, Phase 1/1b data showed anti-tumor activity in heavily pretreated patients across HER2-driven cancers, including some previously treated with T-DXd and tucatinib. A registrational trial could start as soon as 2027. Behind it, IAM217 targets KIF18A in ovarian and triple-negative breast cancer, and a CDK2/CDK4 program targets a common breast tumor; both could enter testing next year.

Iambic's partners include Takeda, AbbVie, Jazz Pharmaceuticals (testing IAM1363 with zanidatamab), Revolution Medicines, Lundbeck and Bayer.

Read also: Iambic's AI-Designed Cancer Drug Shows Early Clinical Activity

Pro deep dive: Biotech IPOs Roar Back, With Nvidia-Backed Iambic Next in Line

Insilico Medicine (HKEX: 3696)

Founded in 2014, Insilico Medicine is a clinical-stage biotech using an end-to-end AI stack for target discovery, small-molecule design, and clinical forecasting. It listed on the Hong Kong Stock Exchange on December 30, 2025, raising HKD 2.277 billion (~US$293 million), the largest Hong Kong biotech IPO of 2025. It was the first AI-driven biotech to list on the HKEX Main Board under Chapter 8.05, with 15 cornerstone investors including Eli Lilly and Tencent.

Insilico's Pharma.AI suite combines PandaOmics for multimodal target and biomarker discovery, Chemistry42 for generative small-molecule design and physics-based optimization, and InClinico for trial-outcome prediction. In 2025 the company also released Nach01, a chemistry-aware foundation model on AWS Marketplace, and showcased an automated lab including the humanoid lab robot "Supervisor."

Insilico's lead drug has become the first generative-AI-discovered drug to enter Phase 3. Rentosertib, an oral TNIK inhibitor for idiopathic pulmonary fibrosis, showed a dose-dependent efficacy trend in Phase IIa data published in Nature Medicine in 2025. The Phase III GENESIS-IPF-3 trial, launched in July 2026, is a randomized, double-blind, placebo-controlled study of once-daily dosing over 52 weeks in about 320 patients at 47 sites in China. At listing, Insilico reported 10 programs with IND clearance and seven in active clinical development; other assets include ISM5939 (ENPP1), ISM8969 (NLRP3, Parkinson's) and eight oral cardiometabolic programs.

Partnerships include a January 2025 license to Menarini's Stemline Therapeutics ($20 million upfront, up to $550+ million in milestones), following the KAT6 inhibitor MEN2312, and a research and licensing collaboration with Eli Lilly valued at over $100 million.

Read also: Insilico Medicine Raises More Than US$290 Million in Hong Kong's Largest Biotech IPO of 2025

Pro deep dive: The Bigger Point Beyond Insilico's Aging Research Milestone

Lantern Pharma (NASDAQ: LTRN)

US-based Lantern Pharma develops precision oncology therapies using artificial intelligence and genomics. Founded in 2013, it closed a $26 million IPO in 2020. Its pipeline follows two directions: new classes of precision cancer drugs with novel mechanisms of action, and "recycling" previously unsuccessful cancer drugs using machine learning, genomic data and novel biomarkers.

Lantern's RADR (Response Algorithm for Drug Positioning and Rescue) platform integrates data analytics, experimental biology and machine learning to define combination strategies across drugs in development and approved oncology drugs. In August 2026, Lantern formally created Open Medicine AI (OMAI), a wholly owned subsidiary holding its AI platform under commercial licenses; Lantern keeps the right to use the platform across its own pipeline. Lantern also opened an AI Center of Excellence in India in early 2026.

Lantern now runs three AI-guided cancer programs:

• LP-300 (never-smoker NSCLC with EGFR exon 21 L858R): in the Phase 2 HARMONIC trial, median PFS was 8.9 months with a 77% clinical benefit rate. Patients who stayed on treatment longer did better, and an FDA Type C meeting supported the path forward.
• LP-184 (zirdafulven): the 63-patient Phase 1a trial met all primary endpoints, with a 48% clinical benefit rate at or above the therapeutic dose. The EMA cleared a biomarker-selected bladder cancer trial and the FDA cleared a trial in triple-negative breast cancer. The FDA also cleared an IND for a pediatric CNS cancer trial run by subsidiary Starlight Therapeutics.
• LP-284: received FDA Orphan Drug Designation for soft tissue sarcomas in Q1 2026, its third orphan designation.

Read also: Lantern Pharma coverage on BiopharmaTrend, including How Lantern Pharma's AI-driven Approach Enables Precision Oncology

Pro deep dive: Is "Rescuing Failed Drugs with AI" a Category Now?

Owkin

Owkin is a privately held Franco-American techbio using federated and multimodal AI to discover targets and optimize clinical trials. It has raised about $300 million, including a $230 million Series B, and Sanofi made a $180 million equity investment in 2021.

Owkin describes its goal as building a "Biology Super Intelligence." At its core is Owkin K, an AI copilot, and Owkin Zero, a large language model fine-tuned on biology and developed in collaboration with NVIDIA. The system combines multimodal patient data (spatial omics, single-cell and pathology imaging from academic partners) with foundation models and AI agents, and feeds lab perturbation and clinical data back for continuous improvement. Its enterprise product, K Pro, is an agentic AI scientist for biopharma; AstraZeneca signed a three-year K Pro license under which Owkin builds AI agents for its workflows, and Sanofi, Servier and Boehringer Ingelheim have also licensed K Pro. At JPM 2026, Owkin launched an agentic infrastructure for biology, alongside an integration with Claude for Healthcare and Life Sciences that includes its Pathology Explorer agent. Owkin also helped build MELLODDY, an industry-scale federated learning platform on which 10 pharma companies trained shared drug-discovery models.

Owkin now runs diagnostics through a spin-out. In March 2026 it spun out its diagnostics unit Owkin Dx as Waiv, with $33 million in financing led by OTB Ventures and Alpha Intelligence Capital. Waiv now carries the digital-pathology tests, including MSIntuit for colorectal cancer, and Owkin remains a minority shareholder. Owkin itself is developing a therapeutic, OKN4395, a first-in-class EP2/EP4/DP1 triple inhibitor in the Phase 1 INVOKE trial.

Owkin's collaborations include Sanofi (oncology, expanded in 2024 to drug positioning in immunology), Bristol Myers Squibb (clinical-trial optimization), Servier, and an AI-powered breast cancer test with AstraZeneca.

Read also: Owkin to Bring Agentic AI into Vienna's Oncology Ecosystem

Recursion Pharmaceuticals (NASDAQ: RXRX)

Founded in 2013, Recursion is a Utah-based clinical-stage "digital biotech" with a robotized biology experimentation platform built on machine learning, high-throughput imaging and high-content screening. It went public in April 2021, raising $502 million, and later acquired Exscientia. Najat Khan, formerly Chief R&D and Commercial Officer, became CEO and President on January 1, 2026; co-founder Chris Gibson left the board in 2026 and remains a strategic advisor.

The Recursion OS turns wet-lab biology into a continuous data loop: robots run standardized experiments, results become digital readouts, and AI models, including purpose-built foundation models and LLM agents, propose new targets, compounds or assays that trigger the next lab runs. Recursion reports a ~65-petabyte proprietary dataset, processed on the NVIDIA-built BioHive-2 supercomputer. With MIT it released Boltz-2, an open-source model that predicts protein structure and binding affinity in one pass. With Roche and Genentech it built a "Microglia Map" of how more than 17,000 genes affect microglia, which earned a $30 million milestone; Genentech has since advanced the collaboration's first neuroscience target.

Recursion's wholly owned pipeline focuses on oncology and rare disease. The most advanced program, REC-4881 (MEK1/2) for familial adenomatous polyposis, reduced total polyp burden in 75% of evaluable patients, with a 43% median reduction at 12 weeks. Recursion has begun engaging the FDA on a registrational path, with an update expected in 2H 2026 and additional Phase 2 data due in November 2026. REC-7735 (PI3Kα H1047R) received IND clearance, and other programs include REC-1245 (RBM39 degrader), REC-617 (CDK7), REC-3565 (MALT1) and REC-4539 (LSD1), whose readouts fall across 2H 2026–2027. Recursion lowered its 2026 cash burn guidance to below $375 million, with runway into early 2028. Partnered portfolios include Sanofi, Merck KGaA, Roche/Genentech and Bayer.

Read also: Recursion Reports Q2 2025 with $7M Sanofi Milestone, Announces Clinical Updates

Relay Therapeutics (NASDAQ: RLAY)

Founded in 2016, Relay Therapeutics is a US-based company built around an AI-driven allosteric drug discovery platform that models protein motion. It went public in 2020 with a $460 million IPO.

Relay's Dynamo platform treats proteins as constantly moving systems rather than static structures. It builds experimental maps of how target proteins change shape, using cryo-electron microscopy and ambient-temperature X-ray crystallography, then feeds them into molecular dynamics simulations to find hidden or transient binding sites. Machine learning models trained on this data, together with the proprietary DNA-encoded library REL-DEL, suggest likely binders. Dynamo then combines ML, physics-based simulation and medicinal chemistry to refine hits for potency, selectivity and drug-like properties.

Relay's lead drug, RLY-2608, now named zovegalisib, is the first pan-mutant selective PI3Kα inhibitor in clinical development. In February 2026 the FDA granted it Breakthrough Therapy designation with fulvestrant for PIK3CA-mutant HR+/HER2- advanced breast cancer after a CDK4/6 inhibitor. At the Phase 3 dose, the doublet showed an 11.1-month median PFS in CDK4/6-experienced patients. The Phase 3 ReDiscover-2 trial, comparing zovegalisib plus fulvestrant with capivasertib plus fulvestrant, is ongoing. Relay chose zovegalisib plus Pfizer's atirmociclib as its first-line triplet, with a Phase 3 in endocrine-sensitive patients expected to start in early 2027. Zovegalisib is also in a Phase 1/2 trial (ReInspire) for PIK3CA-driven vascular anomalies, and Relay has started a Phase 1/2 trial of RLY-8161, an NRAS-selective molecule.

Schrödinger Inc (NASDAQ: SDGR)

Headquartered in New York, Schrödinger develops molecular design software for pharmaceutical, biotech and materials research. Founded in 1990, it went public in 2020 with a $232 million IPO.

Schrödinger builds drug and materials candidates with a physics-driven software stack that combines molecular modeling, simulation and AI. Its core engine, FEP+ (free energy perturbation), estimates how tightly a molecule binds a protein with near-experimental accuracy (around 1 kcal/mol), helping teams rank ideas and tune potency, selectivity and solubility before going to the lab. Active-learning loops triage very large libraries in silico. In 2026 the company released an early-access version of Bunsen, an agentic AI co-scientist that autonomously runs complex molecular discovery workflows on the platform. Software customers are moving quickly to hosted licensing, and Schrödinger reported $6 million in net income in Q2 2026.

Schrödinger's pipeline spans blood cancers (MALT1 inhibitor SGR-1505), solid tumors (Wee1/Myt1 inhibitor SGR-3515), RAS-driven tumors (SOS1), EGFR C797S-resistant lung cancer, NLRP3 and LRRK2 programs. At EHA 2025, SGR-1505 was generally safe and showed early single-agent activity in several relapsed or refractory B-cell cancers, and it received FDA Fast Track designation.

In November 2024, Schrödinger and Novartis signed a multi-target discovery deal worth $150 million upfront plus up to $2.3 billion in milestones. Its collaboration with Ajax Therapeutics, expanded in 2025, produced AJ1-11095 for myelofibrosis, which triggered a $10 million milestone in Q2 2026. Structure Therapeutics, a company Schrödinger co-founded, reported positive Phase 2 results in March 2026 for its oral GLP-1 agonist aleniglipron.

Read also: 13 Publicly Traded AI-driven Drug Discovery Companies, the 2024 edition of this list

Pro deep dive: Is the Future of AI Drug Discovery Hybrid?

XtalPi (HKEX: 2228)

XtalPi is an AI drug discovery company based in Shenzhen that began trading on the Hong Kong Stock Exchange on June 13, 2024, after raising HKD 896 million (~US$115 million). It was founded in 2015 by three quantum physicists from MIT and raised $784 million privately, including a $400 million Series D in 2021 at a ~$2 billion valuation.

XtalPi's core platform, ID4 (Intelligent Digital Drug Discovery & Development), links physics-based molecular simulation with machine-learning models and autonomous wet-lab robotics in a closed loop. AI models propose chemical designs; quantum and first-principles calculations and high-throughput virtual screening rank them; automated labs run synthesis and assays and send results back to retrain the models. The workflow runs at scale on cloud/HPC and multi-station robotics labs in Shenzhen and Shanghai, with build-outs including Cambridge, MA.

XtalPi's partnering business keeps growing. In June 2026 it signed a partnership worth over $400 million with an international biopharma company on an oral small-molecule drug for a metabolic GPCR target. Its DoveTree collaboration, worth up to $5.99 billion, paid a second $19 million in May 2026 after a preclinical oncology candidate entered IND-enabling studies. Earlier deals include Eli Lilly's bispecific-antibody deal with subsidiary Ailux (up to $345 million) and an expanded Pfizer partnership on a physics-plus-AI small-molecule modeling platform. With PharmaEngine, XtalPi won approvals in 2025 to start a Phase 1 study of PEP08, an AI-designed PRMT5 inhibitor for advanced solid tumors.

Read also: XtalPi And DoveTree Finalize $6B AI Drug Discovery Agreement

Tempus AI (NASDAQ: TEM)

Tempus AI is a technology company focused on advancing precision medicine through AI. Founded in 2015 by Eric Lefkofsky, a co-founder of Groupon, it went public in June 2024, raising $410.7 million. It started in oncology and has expanded into neuropsychiatry, radiology and cardiology, fueled by its data acquisition, provider partnerships and over $1.3 billion in pre-IPO funding.

Tempus' AI suite is a connected set of in-workflow tools: Tempus One, a generative-AI assistant with an Agent Builder that integrates with electronic health records; Lens for data exploration and no-code analytics; Pixel for imaging; Next for care-gap alerts; Link for trial matching; and genomic assays and algorithms (xT, xF, IPS, HRD, PurIST) that feed them. In drug discovery, it launched Loop, an oncology platform that generates target hypotheses from multimodal patient data and validates them in patient-derived organoids. With AstraZeneca and Pathos, it is building a large multimodal oncology foundation model ($200 million in combined fees). It has also announced a whole-genome sequencing initiative targeting 1 million genomes, with general availability planned for mid-2027.

Tempus is now growing as a commercial business. In May 2026 the FDA approved a tumor-only indication for its xT CDx test, making Tempus the first lab with FDA companion-diagnostic approval for both tumor-only and tumor-normal profiling. In July 2026 it agreed to acquire Personalis, a leader in tumor-informed MRD testing, in a deal valued at about $1.5 billion, with closing expected in late Q4 2026 or early 2027. Tempus reported its first GAAP net income in Q2 2026 and raised its 2026 revenue guidance to $1.595–1.605 billion, about 25% growth.

Read also: Tempus coverage on BiopharmaTrend, including Tempus Introduces Loop, an AI-Driven Platform for Target Discovery and Validation

A Reality Check for AI in Drug Discovery

The AI drug discovery field moved from promise toward proof in 2026, but proof cuts both ways. Successful implementation still varies dramatically from one use case to another and requires quality data, time, highly skilled talent, and a lot of experimentation and validation. Several drug candidates advertised as AI-generated have missed clinical endpoints, and this year Neumora's navacaprant joined them, failing two Phase 3 trials in depression.

The positive signals are now arriving in later-stage trials. Insilico's rentosertib became the first generative-AI-discovered drug in Phase 3, and Generate's golukibart is in pivotal asthma trials. Relay's zovegalisib earned Breakthrough Therapy designation, AbCellera's ABCL635 posted strong Phase 2 data, and Iambic's IAM1363 is heading toward a registrational trial.

Capital markets have also reopened to the sector. Generate, Insilico and, this week, Iambic completed IPOs, and Tempus and Schrödinger reported quarterly profits. Even so, investor returns remain uneven, and most of these companies still have no approved product.

What is clear is that the advent of AI in drug discovery and development is not a story of a revolution but rather an evolution. Evolution takes time, and it is iterative.

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Topic: AI in Bio