Exscientia Plc (NASDAQ:EXAI) shares are trading higher Wednesday after the company announced an AI drug discovery collaboration with Merck KGaA, Darmstadt, Germany.
What Happened: Exscientia announced a new multi-year collaboration with Merck KGaA focused on discovering small molecule oncology, neuroinflammation and immunology drug candidates. Exscientia will pair its AI capabilities with Merck KGaA’s oncology and neuroinflammation expertise.
The companies have identified three targets to initially focus on and could name additional targets. If additional targets are identified, Exscientia will be responsible for target validation.
“We’re pleased that Merck KGaA, Darmstadt, Germany chose our team of experts for this AI-led drug discovery collaboration,” said Andrew Hopkins, founder and CEO of Exscientia.
“We look forward to complementing their outstanding scientific acumen with our integrated technology platform and ability to generate novel data in order to address some of the hardest drug design challenges in cancer and immunology.”
Exscientia will receive an upfront payment of $20 million in cash and be eligible for milestone payments of up to $674 million in total. If a drug is commercialized, the company will also receive tiered royalties based on product sales.
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EXAI Price Action: Exscientia shares were up 31.2% at $6.63 at the time of publication, according to Benzinga Pro.
Photo: 3844328 from Pixabay.
