Exelixis to license Insilico AI-designed cancer drug

Exelixis Inc.
EXEL,
+0.45%
is licensing the global rights to develop and commercialize an investigational cancer treatment that was derived from Insilico Medicine’s generative artificial intelligence drug-discovery platform, the companies announced Tuesday. The cancer therapy, ISM3091, is an inhibitor of USP1 and is being studied for its potential to treat BRCA-mutant tumors, which include forms of ovarian, prostate and breast cancer. The deal gives Insilico an upfront payment of $80 million, expected in the third quarter of this year, and eligibility for future development, commercial and sales-based milestone payments. The agreement also gives Exelixis a license for other USP-1 targeting compounds, the companies said in a release. Exelixis shares gained 0.8% premarket on Tuesday and are up 37% in the year to date, while the S&P 500
SPX,
-0.57%
has gained 16.9%.