Frontier IP, the Edinburgh-based business which specialises in commercialising university intellectual property, today said one of its portfolio companies had struck a deal with German pharmaceutical giant Bayer which could be worth more than £200 million.
Exscientia, which is focussed on artificial intelligence-driven drug discovery, has entered into a collaboration with Bayer focused on accelerating the development of drugs to treat cardiovascular disease and cancer.
Under the terms of the agreement, Exscientia may be eligible to receive up to £204 million including upfront and research payments, and for meeting near term and clinical milestones. The company may also receive sales royalties. Frontier IP currently holds a 3.25% stake in the Company.
Professor Andrew Hopkins, CEO of Oxford-based Exscientia, said: "We're delighted to collaborate with Bayer, a globally recognised pharmaceutical company. Since our pioneering Nature papers demonstrating the automated design of small-molecules, we have enhanced our platform and exemplified it commercially, by accelerating the discovery of future drug molecules with partners."
Dr Joerg Moeller, Bayer’s head of R&D, said digital technologies such as AI can simplify and speed up the discovery and development of new drugs for patients.
“The collaboration with Exscientia is expected to help us to achieve project milestones earlier and at the same time accelerate timelines by enabling more precise identification of suitable drug targets and lead structures."
