The latest funding round gives XtalPi $20M in the bank, which the company said makes it “one of the top-funded AI-powered biotechs.”
The use of artificial intelligence to address health concerns is a growing field and tech giant Google is backing Chinese company XtalPi. in its goal of using AI to help with drug design.
Google, along with investors Tencent and Sequoia China, backed Chinese firm XtalPi Inc. in a $15 million Series B funding round. The latest funding round gives XtalPi $20 million in the bank, which the company said makes it “one of the top-funded AI-powered biotechs.”
XtalPi was founded in 2014 with a focus on its Intelligent Digital Drug Discovery and Development (ID4) program. The ID4 program is designed to improve the efficiency, accuracy, and success rate of drug design, solid-form drug selection, and other critical aspects of preclinical drug development. The XtalPi technology can quickly and accurately predict many important characteristics of small-molecule drugs and solid forms, the company said. That quickness provides “time-saving insights into the safety, stability, and efficacy of drug candidates.”
Proceeds from the $15 million funding round will be used to develop new computational models built on big data generated from the company’s platform. Additionally, the funds will be used to expand XtalPi’s business into adjacent areas along the pharmaceutical value chain, the company said. The proceeds will also be used to support the construction of a “prediction-driven research lab that integrates XtalPi’s R&D platform with state-of-the-art wet-bench laboratory technologies.” XtalPi said the “hybrid computational-experimental facility” will provide it with enhanced capabilities for the rational design of solid form drugs.
“At XtalPi, we believe that algorithmic power is the key to finding smarter, more effective routes for drug research and development, and we are focused on building a computational engine that empowers and expedites pharmaceutical innovation for companies worldwide,” XtalPi Co-founder and Chairman of the Board Shuhao Frank Wen said in a statement. “The financing from Sequoia China, Google, and Tencent, who are among the top investors and innovators in AI and computer science, represents a strong endorsement of our vision and technology. We look forward to working closely with them as XtalPi continues to mature and succeed.”
Frank Lin, principal of corporate development for Google’s North Asia division, called XtalPi’s AI platform a “powerful new tool for drug development.” Lin said ID$ could help propel pharmaceutical R&D productivity and capabilities while reducing costs.
XtalPi certainly isn’t the only company using AI to advance life sciences and pharma. In July 2017, pharma giant GlaxoSmithKline forged a $43 million deal with AI company Exscientia to spur drug development. GSK said it will be using AI to discover novel and selective small molecules for up to 10 disease-related targets across multiple therapeutic areas. Also in July 2017, the Mayo Clinic and nference launched a startup company called Qrativ that is focused on drug development that will be powered by clinical expertise and artificial intelligence. Innovator Elon Musk launched the biotech company Neuralink that has the lofty goal of linking the human brain with a computer.
