Generate and Novartis Forge $1B+ Alliance for AI-Powered Protein Therapeutics
AI firm Generate:Biomedicines announced on Tuesday that it has secured a $1B+ collaboration with Novartis to advance AI-driven protein therapeutics.
Generate:Biomedicines has entered a significant multi-target collaboration with Novartis aimed at discovering and developing protein therapeutics using generative AI. With a potential transaction value exceeding $1 billion, this partnership marks another major milestone for Generate, which will receive $65 million in upfront payments, including $15 million through Novartis’ purchase of equity in the company. This deal, one of the largest for Generate, focuses on multiple disease areas, although specific targets remain undisclosed.
The collaboration harnesses Generate’s proprietary AI platform, “The Generate Platform,” which combines advanced machine learning with high-throughput experimental validation to design novel, optimized protein therapeutics. By integrating Generate’s AI expertise with Novartis’ global leadership in biologics, target biology, and clinical development, the partnership aims to accelerate the creation of novel medicines and the pace of drug discovery and development.
Fiona Marshall, President of Biomedical Research at Novartis, highlighted the partnership’s transformative potential, stating:
“We are delighted to collaborate with Generate to explore the promise of generative AI in enhancing and accelerating the discovery of next-generation biologics. This collaboration offers an opportunity to leverage the unique strengths of our respective companies, from target biology and biologics discovery to machine learning/AI and clinical development, in order to bring forward new medicines with transformative potential for patients.”
Mike Nally, CEO of Generate:Biomedicines, emphasised the broader impact, adding:
“Partnering with a world-leading drug discovery and development organization like Novartis allows us to broaden the use of our cutting-edge generative biology platform to tackle even more areas of unmet medical need. We look forward to working closely with the team at Novartis to continue to demonstrate the transformative potential of programming biology to create better medicines for patients, faster.”
Under the Novartis agreement, Generate is eligible to receive over $1 billion in milestone payments, alongside tiered royalties up to the low double digits. The number of targets and therapeutic areas covered by this deal remain confidential at this time.
This Novartis deal is Generate’s most significant since its $1.9 billion collaboration with Amgen in 2022, which initially focused on five therapeutic programs and expanded earlier this year to include a sixth, adding an additional $370 million in potential future payments.
Beyond these high-profile partnerships, Generate also recently completed a $273 million Series C funding round, backed by key investors including Amgen and NVIDIA. This followed a $370 million second round in 2021, bringing Generate’s total fundraising to approximately $700 million since its founding in 2020.
In May this year, Generate earned a spot on CNBC’s 2024 “Disruptor 50” list, ranking No. 25 among private companies upending the classic definition of disruption.
Generate’s recent achievements underscore its position as a leader in the rapidly evolving field of AI-driven drug discovery, as it continues to build on its partnerships and innovative platform to reshape the future of biologics development.
About Generate:Biomedicines
Generate:Biomedicines is at the forefront of generative biology, utilising advanced AI to design and develop protein therapeutics across a range of diseases. Its platform accelerates drug discovery by generating novel molecules with unprecedented speed and precision.
Learn more at www.generatebiomedicines.com
About Novartis
Novartis is a global leader in healthcare and biologics development, committed to improving patient outcomes by advancing the science of therapeutic discovery and clinical innovation.
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