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AI Pharmaceutical company Formation Bio self-raises 600000000 USD a fund dedicated to acquiring drug candidates and advancing them into clinical trials
Beating AI Breaking News,AI Pharmaceutical company Formation Bio announced the establishment of a 600000000 USD drug development fund, planning over the next 3 to 5 years to acquire or in-license 10 to 15 drug candidate projects. It has already secured licenses for projects.
Rather than developing new drugs from scratch, Formation Bio selects drugs developed by other pharmaceutical companies that have not yet completed clinical validation, with a focus on Phase I and Phase II clinical projects. It establishes a separate company for each drug, provides funding, and shares its own clinical R&D team and AI system to help identify indications, design trials, and advance clinical validation. After obtaining key clinical data, it then partners with major pharmaceutical companies on development or commercialization.
Founder Ben Liu believes that AI is making drug discovery increasingly fast, but clinical trials remain time-consuming and costly. Over the past years, the number of drug candidates discovered has doubled, yet the number of new drugs approved each year has not increased significantly. Even when many pharmaceutical companies discover promising drugs, they lack sufficient funding and personnel to continue advancing them.
In 2024 Formation Bio raised 372000000 USD, with investors at the time purchasing equity in the company. This time, it has established an independent fund, allowing external investors to directly fund drug projects, while Formation Bio is responsible for development and co-invests. If a drug makes clinical progress, returns can be generated through licensing or sale. This way, the company does not need to rely on a new round of equity financing every time it acquires a new drug, and can also direct more capital toward clinical trials.
Original link https://m.theblockbeats.info/flash/374401