Mergers, Acquisitions & Market Dynamics

Insilico & Tenacia Expand AI-Driven CNS Collaboration Deal

Insilico Medicine (“Insilico”, 3696.HK), a clinical-stage generative artificial intelligence (AI)-driven biotechnology company, and Tenacia Biotechnology (Hong Kong) Co., Limited (“Tenacia”), a commercial-stage biopharmaceutical company dedicated to developing innovative therapeutics for patients with underserved neurological disorders, today announced that, building on the productive collaboration over the past year, the two parties will further expand and deepen AI-driven R&D collaboration.

In the initial phase of the collaboration launched in March 2025, the companies’ combined Insilico’s cutting-edge generative AI drug discovery platform, Pharma.AI, and deep drug discovery expertise with Tenacia’s specialized scientific insights and proprietary data assets. The program focused on developing small-molecule inhibitors with strong blood–brain barrier (BBB) permeability for CNS treatment, is progressing smoothly.

Under the expanded agreement, the companies will leverage generative AI to jointly develop an additional innovative candidate with defined properties for challenging neurological diseases and advance it to the preclinical candidate (PCC) stage to address differentiated clinical needs. By exploring molecules with distinct profiles, the partners aim to provide a broader and more precise set of therapeutic options for highly challenging nerve system-related conditions, helping mitigate late-stage development risk and improve potential clinical benefit. The expanded collaboration carries additional potential deal value of up to US$94.75 million, with Insilico eligible to receive near-term and milestone payments from Tenacia.

Alex Zhavoronkov, PhD, founder, CEO and CBO of Insilico Medicine, said: “Launching a second program with specific, differentiated attributes for the same target within such a short timeframe demonstrates the depth and flexibility of generative AI in modern drug design. The synergy between Tenacia’s expertise in CNS and Insilico’s Pharma.AI platform continues to generate innovative solutions with strong translational potential. We are pleased to expand our strategic partnership with Tenacia and look forward to continuing our collaboration to help overcome R&D barriers in neuroscience and advance transformative treatment options for patients worldwide.”

Tenacia stated that Tenacia is committed to the drug discovery and development for the treatment of nerve system diseases, and bringing innovative and differentiated therapies to the patients. The progress of the initial collaboration between Insilico and Tenacia has witnessed significant value to combine the expertise from both companies leading to impactful innovation. We are excited to expand the collaboration with Insilico to deliver future medicine of great value.

Leveraging its end-to-end AI platform and deep understanding of disease, Insilico has continued to expand its footprint in CNS therapeutics in recent years. In early 2026, Insilico entered into a co-development agreement with Hygtia Therapeutics, a joint venture of Fosun Pharma, [Legal1] to advance ISM8969 targeting NLRP3 for CNS treatment. The parties will share 50/50 global rights, and Insilico is eligible to receive upfront and milestone payments totaling over HK$500 million. The program has received FDA clearance to initiate clinical trials for Parkinson’s disease in Jan 2026.

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