AstraZeneca PLC (LSE:AZN) is betting big on AI-enabled drug discovery (and China), agreeing a research collaboration with China’s CSPC Pharmaceutical Group that could see the Anglo-Swedish drugmaker pay up to $3.6 billion in milestone payments.
The deal focuses on developing new oral treatments for chronic conditions, with both companies contributing to the discovery and development of pre-clinical candidates.
The collaboration will initially target immunological diseases, leveraging CSPC’s AI-driven discovery platform to identify and optimise promising small-molecule therapies.
CSPC will lead the research work from its base in Shijiazhuang, using artificial intelligence to analyse protein-compound interactions and refine potential drug candidates.
AZ, which has the option to license any successful candidates globally, is continuing to deepen its presence in China, following a separate $2.5 billion investment in Beijing announced earlier this year.
CSPC receives an upfront payment of $110 million and stands to gain up to $1.62 billion in development milestones, alongside future royalties on sales.