Bristol Myers Squibb Expands ALS Partnership with Insitro, Committing Over $2 Billion

Bristol Myers Squibb (BMS) has significantly expanded its collaboration with artificial intelligence specialist Insitro, focusing on amyotrophic lateral sclerosis (ALS) drug development. The extended partnership, announced nearly five years after their initial agreement, underscores BMS's commitment to leveraging AI-driven approaches in neurodegenerative disease research.

Partnership Extension and Financial Terms

The pharmaceutical giant will invest up to $20 million to extend the existing contract with Insitro for an additional year. This extension builds upon their October 2020 agreement, which was set to conclude this month. The deal's potential value exceeds $2 billion, encompassing discovery, development, regulatory, and commercial milestones, along with royalties on any resulting marketed products.

This latest agreement follows BMS's decision in December to exercise its option on an ALS target identified through the collaboration, which triggered a $25 million milestone payment to Insitro. The partnership extension will allow further development of this target using Insitro's ChemML technology, an AI and machine learning-powered platform designed to accelerate small-molecule discovery and optimization.

AI-Driven Drug Discovery for ALS

The core of the BMS-Insitro collaboration lies in the application of advanced AI technologies to create induced pluripotent stem cell (iPSC) models of ALS and frontotemporal dementia (FTD). This approach aims to identify and validate novel drug targets for these challenging neurodegenerative conditions.

Insitro's AI-powered platform has already demonstrated its value in target identification, leading to BMS's selection of an ALS target in December 2023. The extended collaboration will now focus on leveraging Insitro's ChemML technology to design innovative drugs against this target, potentially accelerating the drug discovery process and improving the chances of developing effective ALS treatments.

BMS's Strategic Investments in Innovation

The expanded partnership with Insitro is part of a broader strategy by BMS to bolster its pipeline through strategic collaborations and acquisitions. Recent notable investments include:

• A $1.5 billion acquisition of cell therapy company Orbital Therapeutics, gaining a lead asset for autoimmune disorders.
• A partnership with Philochem, valued at $350 million upfront with $1.35 billion in potential milestone payments, focusing on prostate cancer research.
• An $11 billion collaboration with BioNTech to develop solid tumor bispecific antibodies.
• The $286 million acquisition of 2seventy bio, BMS's partner in producing the cell therapy Abecma.

These investments reflect BMS's commitment to maintaining a robust and diverse pipeline, with a particular emphasis on innovative technologies and approaches to drug discovery and development.