SK Biopharm expands AI drug development with $2.57B co-research deal

SK Biopharm is stepping up its push into new therapeutic areas, teaming up with generative AI-driven drug development firm Insilico Medicine to launch a joint research program targeting multiple disease candidates.

SK Biopharm announced Sunday that it signed a joint research and development partnership agreement with China-based Insilico Medicine at the 2026 BIO International Convention (BIO USA) in San Diego to identify new drug candidates in the central nervous system (CNS) neuroimmunology space.

The deal marks a significant expansion for SK Biopharm beyond its established CNS focus into neuroimmunology — an area with high unmet medical need. The company plans to build on the expertise it developed through its epilepsy drug cenobamate to diversify its pipeline in both breadth and depth.

Under the agreement, the two companies will use Insilico's AI drug development platform Pharma.AI to conduct joint research on three selected targets through the preclinical stage. SK Biopharm will retain ownership of the resulting drug candidates and hold exclusive global rights to their development and commercialization.

The total deal value reaches up to 3.9 trillion won ($2.572 billion) depending on whether agreed milestones are met. Of that, a non-refundable upfront payment stands at 6.9 billion won ($4.5 million), while development, regulatory and sales-based milestone payments account for up to 3.94 trillion won ($2.568 billion). Royalties on net product sales will be paid separately.

AI platforms and Asia-based biotechs have been gaining rapid traction in the global drug R&D market as new sources of innovation. Against that backdrop, SK Biopharm said it plans to use this collaboration as the foundation for its "Extended R&D Lab" model — an approach that integrates external technology as organically as in-house research infrastructure.

The partnership is the first AI-driven drug discovery case executed through SK Biopharm's Open Innovation Center. The company expects the collaboration to cut the time needed to identify drug candidates by nearly 50 percent compared with traditional research methods, while also significantly reducing early-stage discovery costs. SK Biopharm also plans to build its own AI capabilities by accumulating molecular design and validation data generated through the partnership.

Alex Zhavoronkov, chief executive of Insilico Medicine, said he was confident that "our AI-accelerated processes, combined with SK Biopharm's global capabilities, will open up innovative breakthroughs."

SK Biopharm President Lee Dong-hoon said the deal "serves as an East-West bridge connecting the discovery capabilities of the Asia-based AI drug discovery ecosystem with the US clinical and commercialization infrastructure," adding that the company intends to develop it into "a repeatable growth platform applicable each time a new target is identified."