The British pharmaceutical company AstraZeneca announced on Thursday a collaboration with the artificial intelligence-specialized biotechnology company Insitro. The partnership aims to develop new treatments for severe heart and liver diseases that are difficult to treat.
Under the terms of the agreement, AstraZeneca will pay Insitro $40 million upfront. Additionally, Insitro is entitled to up to $1.46 billion in milestone payments and a percentage of future sales as royalties.
The multi-year project will focus on metabolic dysfunction-associated steatohepatitis (MASH), a serious liver disease, and cardiomyopathies—a group of diseases affecting the heart muscle. Both groups of diseases have long lacked effective treatments because it has been difficult for researchers to determine their underlying biological causes.
Insitro will utilize its 'Virtual Human' AI platform, which combines lab-grown cellular models with machine learning. This platform will help identify the causal biology of the diseases and advance targets selected by AstraZeneca from the discovery stage to the drug candidate stage. Subsequently, AstraZeneca will conduct and fund future clinical trials.
This deal continues Insitro's expansion into the pharmaceutical market. The biotech company recently strengthened its partnership with Bristol Myers Squibb to develop a broader portfolio of targets for amyotrophic lateral sclerosis (ALS). Insitro also joined forces with Eli Lilly to create AI models capable of predicting the pharmacological properties of small molecules in living organisms.
Sharon Bar, Vice President of Biopharmaceutical Research and Development at AstraZeneca, told Reuters that identifying new targets for inclusion in the discovery pipeline is one of the most challenging tasks in R&D. She added that by the time information about a new pathway or target appears in major scientific journals, it is no longer new but is in the public domain, leaving the company too late. However, by identifying unique connections early on and testing them in cellular systems, the company stays ahead of competitors. Bar emphasized that combining AI tools with scientific expertise allows the company to test fewer molecules in the lab, reduce uncertainty, and accelerate the search for effective drugs.

