Key insights
- Isomorphic Labs, backed by Google, raised $2.1B to scale its AI-driven drug discovery platform. While not directly impacting current earnings, the large investment signals continued strong interest and capital flowing into AI applications within the healthcare sector. This indirectly supports positive sentiment for AI-related tech stocks and biotech companies exploring AI integration.
May 12 (Reuters) - Isomorphic Labs, an artificial intelligence-driven drug discovery company, said on Wednesday it has raised $2.1 billion in its latest funding round led by existing investor Thrive Capital.
The funding round, completed at an undisclosed valuation, also included other existing investors, Google Ventures and Alphabet, along with new backers MGX, Temasek and CapitalG.
The development comes amid a broader industry push to demonstrate practical applications of AI in the healthcare sector, including its ability to accelerate research and development along with shortening drug discovery timelines.
"This capital injection allows us to build out our drug design engine at scale, driving us forward in our mission to solve all diseases," said founder and CEO Demis Hassabis.
Isomorphic was founded in 2021 as a spin-off from Google DeepMind, an AI research lab acquired by Alphabet in 2014.
One of DeepMind and Hassabis' most celebrated breakthroughs was AlphaFold, an AI program that can predict protein structures, which can help scientists design drugs and target diseases more effectively.
"Now that we have shown our approach is fundamentally sound, our focus is on scaling our technology to its full potential," said Hassabis.
The company now expects its first clinical trials by the end of 2026 — a delay from the CEO's earlier target of having AI-designed drugs in trials by the end of 2025.
The London-based company raised $600 million in its first funding round last year, also led by Thrive Capital, a major backer of AI-focused companies.
The company did not immediately respond to a Reuters request for comment on the valuation.
(Reporting by Pritam Biswas in Bengaluru; Editing by Vijay Kishore)