Insilico Medicine and China Medical System Holdings Limited announced a collaboration to co-develop a central nervous system drug using an innovative mechanism of action identified by PandaOmics. The partnership targets a mass-market indication and combines Insilico Medicine's generative artificial intelligence platform with China Medical System Holdings Limited's research and development team and therapeutic expertise. Insilico Medicine is eligible to receive up to approximately 1.2 billion RMB in milestone payments plus royalties.

The agreement marks a deepening of the relationship between the two companies, building on a previous announcement made earlier this year. The collaboration spans the full value chain, from drug discovery and clinical development to commercialization. The goal is to accelerate the delivery of clinically meaningful innovations to patients with greater speed and quality.

Financial Terms

The financial structure of the deal includes significant potential payments for Insilico Medicine based on the achievement of developmental and commercial milestones. The following table outlines the key financial components of the agreement:

Strategic Alignment

Mr. Lam Kong, the Chairman, Chief Executive Officer, President and Executive Director of China Medical System Holdings Limited, highlighted the strategic fit between the two organizations. He noted that Insilico Medicine's leadership in AI drug discovery platforms complements China Medical System Holdings Limited's capabilities in innovative R&D, clinical translation, and commercialization network coverage.

Feng Ren, PhD, Co-CEO and Chief Scientific Officer of Insilico Medicine, expressed satisfaction with the expanded partnership. He emphasized the value of the innovative mechanism of action identified by PandaOmics, which streamlines the development of high-potential drugs and enhances translational efficiency. The collaboration aims to provide patients with more differentiated and accessible treatment options.

Insilico Medicine, a generative artificial intelligence (AI)-driven clinical-stage biotech company, today issued a positive profit alert for the six months ended June 30, 2026. The company forecasts revenue between USD102.5 million and USD106.5 million, representing a year-on-year increase of approximately 272.7% to 287.3%. Net profit is expected to range from USD33.5 million to USD39.5 million, while adjusted non-IFRS net profit is projected to be between USD45.5 million and USD51.5 million. This financial performance is primarily driven by sustained revenue growth and systematic improvements in operational efficiency.

Global Collaborations Drive Business Growth

The increase in financial performance was fueled by advancements in global out-licensing, co-development, and research collaboration. During the First Half of 2026, Insilico announced multiple collaborations with partners including Servier, Hygtia Therapeutics, Qilu Pharmaceutical, CMS, Tenacia, Eli Lilly, and SK Biopharmaceuticals. The company also unlocked milestones within existing partnerships with Hisun Pharma, Menarini, TaiGen, and Hygtia Therapeutics. Additionally, Insilico expanded its strategic network through new alliances with Tigermed, Ancestor Cell, JOINN Laboratories, Ribo Life Science, and Etern, as well as engagements with Memorial Sloan Kettering Cancer Center, ASKA Pharma, and Saudi Aramco.

AI Platform Upgrades as Innovation Foundation

Insilico optimized its Biology42, Chemistry42, and Science42 platforms within Pharma.AI and introduced two agentic systems: PandaClaw and LabClaw. PandaClaw automates biological analysis workflows, while LabClaw functions as an autonomous laboratory orchestration system. In January 2026, the company launched Science MMAI Gym, a foundation model training framework integrating over 1,000 drug discovery benchmarks and approximately 120 billion tokens of pharmaceutical data. Collaborations were established with Liquid AI and Human Longevity to advance these AI capabilities, alongside continued partnerships with Microsoft Azure and Google Cloud.

Accelerated Pipeline Progress to Unlock Long-Term Value

Insilico achieved several clinical milestones, including the entry of Rentosertib (ISM001-055) into Phase III clinical trials for idiopathic pulmonary fibrosis. Other advancements include Garutadustat (ISM5411) completing first-subject dosing in a Phase IIa trial for inflammatory bowel disease, and ISM8969 receiving dual IND approvals and completing first-in-human dosing. The company nominated six preclinical candidate compounds (PCCs) in H1 2026, bringing its total pipeline to 31 PCCs, with 13 having achieved IND clearance and 10 programs in clinical development.

Financial Outlook for H1 2026

The following table outlines the expected financial performance for the First Half of 2026:

The financial information is based on preliminary assessments of unaudited consolidated management accounts and is subject to adjustment. The interim results announcement for the First Half of 2026 is expected to be published in August 2026.