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(Sharecast News) - AstraZeneca said on Thursday that it will pay up to $1.86bn to enter a new strategic drug discovery collaboration and licensing agreement with Califiornia-based AI biotech firm Insitro.
The collaboration will identify novel drug targets and advance the design of new therapeutics for patients for metabolic dysfunction-associated steatohepatitis (MASH) and cardiomyopathies - liver and heart diseases.
Under the agreement, AstraZeneca will make an upfront payment of $40m, with Insitro also eligible for up to around $1.46bn in potential development and commercial milestones, plus potential single digit royalties based on global commercial sales.
Sharon Barr, executive vice president and head of BioPharmaceuticals R&D, AstraZeneca, said: "We know that disease biology is incredibly complex, and one of the most critical decisions in R&D is selecting the right target. This strategic collaboration underscores our commitment to maximising the potential of cutting-edge AI to tackle the root cause of disease.
"Partnering with Insitro, we will use advanced AI to identify the biological drivers of disease to support the rapid discovery of high-quality novel targets, advancing our ambition to deliver the next generation of medicines to patients faster."
AstraZeneca will have exclusive worldwide rights to advance selected programmes identified under the collaboration.
At 1345 BST, AZN shares were up 2.4% at 12,584.72p.
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