AI-Based Drug Discovery Firm Insilico Considers Hong Kong Listing After Series E Funding Round

Insilico Medicine Inc., a US-based biotechnology startup with significant operations in China, is weighing the possibility of an initial public offering (IPO) in Hong Kong, following a successful funding round that raised $110 million. The company, known for integrating artificial intelligence into pharmaceutical research, saw its valuation rise to over $1 billion as part of this Series E financing.

The latest investment round was led by Value Partners Group, with participation from existing investors such as Warburg Pincus, OrbiMed Advisors LLC, and the venture arm of Eli Lilly & Co. In a statement, the company emphasized its financial stability, noting that it is not under pressure to go public. Speaking from the US via Zoom, Chief Executive Officer Alex Zhavoronkov stated that they are “considering timing and listing options, primarily looking at Hong Kong,” but added, “we’re under no pressure as we have extremely healthy revenues and can also comfortably raise a good amount of capital.”

Investor interest in generative AI startups has intensified across Asia, particularly since the emergence of DeepSeek in China, which has shown notable progress in AI research outside the United States, according to Zhavoronkov. Insilico, along with competitors such as Atomwise Inc. and BenevolentAI, aims to streamline the traditionally lengthy and costly drug development process using AI tools.

Insilico’s revenue streams include licensing assets from its proprietary pipeline to pharmaceutical companies like Fosun Pharma and Exelixis Inc. Additionally, the company has secured collaboration agreements with organizations such as Sanofi SA and Saudi Aramco Oil, with a combined contract value of approximately $3.5 billion. These agreements include milestone payments and royalty arrangements.

Despite submitting applications for a Hong Kong IPO in both 2023 and 2024, Insilico let both lapse without proceeding to book-building stages. However, the firm has not ruled out the possibility of a future listing and continues to assess market conditions.

The company plans to use its newly raised capital to enhance its AI-driven platform and advance the clinical development of Rentosertib, its lead candidate for treating idiopathic pulmonary fibrosis, a progressive lung disease. This drug has passed multiple clinical phases and completed Phase IIa trials, which focus on evaluating safety, appropriate dosage levels, and preliminary effectiveness.

Insilico’s current portfolio consists of 30 drug assets, including 10 that have received approval from the US Food and Drug Administration (USFDA) to be tested in humans as investigational new drugs. While chemical synthesis and animal testing are carried out in China, all advanced clinical trials are conducted in the United States.

The company also markets its AI capabilities through a commercial platform named pharma.ai, aiming to integrate biology, chemistry, clinical medicine, and scientific research into a single system. In addition, Insilico is testing advanced technologies like humanoid robots at its laboratory in Suzhou, near Shanghai. The company’s first robot is currently navigating the lab environment and is expected to support data generation and process automation in the near future.