Commercialization Roadmap Validated with Three-digit Million-dollar Revenue: Insilico Medicine Announces Interim Results for the First Half of 2026

CAMBRIDGE, Mass., Aug. 26, 2026 /PRNewswire/ — Insilico Medicine (HKEX: 3696), a clinical-stage generative artificial intelligence (AI)-driven drug discovery company, recently released its interim results report for 2026. The report shows that the Company achieved total revenue of US$106.3 million in the first half of 2026, representing a substantial year-over-year increase of 287.2%, with a gross profit margin of 90.3%. During the period, the Company realized a net profit of US$35.54 million and an adjusted net profit (non-IFRS measure) of US$51.23 million, with positive operating cash flow. The Company’s total cash and investment portfolio reached US$584.8 million as of 30 June 2026. By achieving full profitability in its first interim report since listing, the path towards commercial value realization of AI-driven drug discovery is becoming increasingly clear.

In terms of business segments, revenue from drug discovery and pipeline development soared to US$103.1 million in the first half of 2026, showing an increase over 300% year-over-year. This was primarily driven by large-amount upfront payments from a series of key business development (BD) deals reached during the period, as well as milestone payments continually confirmed from existing collaborations. Meanwhile, revenue from software solutions grew steadily to US$2.70 million, indicating that the domain-specific model training and evaluation ecosystem centered around MMAI Gym, built by the Company in 2026, is becoming a second growth engine for revenue.

Expanding Global BD Collaborations: Shaping a Diversified Commercial Network

Driven by the underlying synergy of the two major business segments, represented by Artificial Intelligence (AI) and Drug Discovery (DD), the rapid growth in revenue and profit directly stems from the frequent BD collaborations during the reporting period. As of the Latest Practicable Date, the total contract value of transactions announced by Insilico Medicine in 2026 was approximately US$7.3 billion. Concerning the volume, size, and depth of progress, this not only reflects the recognition of the Company’s R&D platform and pipeline asset value by global leading pharmaceutical companies, but also indicates the trend of collaboration models evolving from single out-licensing to repeated collaborations and in-depth co-development, consolidating the Company’s global collaboration network.

In the US and European markets, where frontier medical innovations gather, Insilico Medicine continues to broaden the disease areas empowered by AI, with collaboration models continuously reaching the core sectors, all the way into co-development. In January, Insilico Medicine entered into an oncology drug discovery collaboration with Servier valued at up to US$888.0 million, with upfront payment and near-term milestone payments of US$32 million, further validating the application value of the Pharma.AI platform. In March, the Company signed a global out-licensing and R&D collaboration agreement with Lilly valued up to US$2.75 billion, including an upfront payment of US$115 million. This marks Lilly’s role transformation from a platform user to an R&D partner, cornerstone investor, and ultimately an in-depth collaborator, reflecting the continued strategic investment by multinational pharmaceutical companies (MNCs) on AI-driven drug discovery.

In Greater China, where Insilico Medicine’s drug discovery feats are produced, large-scale collaborations are steadily deepening, and a pattern of “early technical validation + subsequent in-depth collaboration” is emerging. In January, the Company announced a US$66 million global co-development collaboration with Hygtia Therapeutics to jointly develop ISM8969, an innovative brain-penetrant NLRP3 inhibitor. In the same month, Insilico Medicine reached an R&D collaboration with Qilu Pharmaceutical totaling nearly $120 million, enhancing the synergistic model from software platform services to joint R&D.

Furthermore, in February and June, the Company reached consecutively an early-stage collaboration worth tens of millions of RMB with CMS (China Medical System), followed by a deepened collaboration agreement totaling RMB 1.2 billion in June, to utilize generative AI for innovative solutions in the central nervous system (CNS) disease area. In March, the Company announced that it further expanded its drug discovery collaboration with Tenacia Biotechnology, entering into a CNS drug R&D collaboration with a total deal value of US$94.75 million.

In the Asia-Pacific region, where generative AI drug discovery innovations continue to bring changes, the commercial footprint continues to expand, presenting new scenarios for pioneering AI application. In June, Insilico Medicine announced a US$2.5 billion AI drug discovery collaboration with SK Biopharmaceuticals, focusing on the neuroimmune disease area, which faces high unmet needs and severe research challenges. In July, the Company announced a strategic collaboration with Takeda Pharmaceutical totaling approximately US$600 million, including approximately US$60 million in project initiation fees, near-term payments and milestones, leveraging generative AI to empower multi-domain drug discovery and deeply participating in the strategic transformation of MNCs toward an AI-native R&D model.

In the AI and software solutions sector, the Pharma.AI drug discovery suite is witnessing continuous updates. The domain-specific model training and evaluation ecosystem centered around MMAI Gym is opening up a second curve of revenue, gaining validation in commercialization. In March, the Company reached its first MMAI Gym-based AI model co-development collaboration with Liquid AI, a company focused on Liquid Foundation Models (LFM) and developing next-generation generative AI models. This partnership successfully delivered a lightweight, on-premise scientific foundation model, achieving cloud-model performance of tens of billions of parameters using only 2.6 billion parameters. In the same month, the Company reached a strategic collaboration intent with the Emirates Drug Establishment (EDE) to promote the application of frontier AI technology in medical regulation and multi-science scenarios. In May, the Company partnered with Human Longevity, a company dedicated to precision health and longevity medicine, to jointly develop the industry’s first AI foundation model for longevity science, further bridging the commercial monetization path from underlying algorithms to vertical subdivisions.

AI-Empowered Scalable Innovations: 9 PCC Nominations and 8 Clinical Advancements Solidify the Foundation for Growth

While expanding Insilico Medicine’s commercial boundaries, frequent BD collaborations are continuously validating the technical value and scalable delivery capabilities of Insilico’s AI-driven drug discovery platform. As external collaborations continue to deepen, the Company’s proprietary and co-developed pipeline programs are accelerating toward milestone achievements, further driving the translation of platform capabilities into sustainable pipeline assets and long-term growth momentum. Since the beginning of 2026, Insilico Medicine has announced the nomination of 9 pre-clinical candidates (PCCs) and achieved 8 clinical advancements, fully leveraging the advantages of generative AI in enhancing R&D efficiency, shortening development cycles, and reducing R&D costs.

Pre-clinical Candidate (PCC) Nominations:

• In January, the Company announced the nomination of ISM0676, a novel oral small molecule GIPR antagonist. It achieved 31.3% weight loss in preclinical models, demonstrating best-in-class potential and providing an innovative small molecule solution for the treatment of obesity and Type 2 diabetes.
• In February, the Company announced the nomination of ISM5059, a peripherally restricted NLRP3 inhibitor, which expands the Company’s pipeline layout in systemic inflammatory diseases by precisely controlling peripheral exposure to reduce toxic side effects. In the same month, the Company nominated ISM6166, an anti-cancer drug candidate targeting pan-KRAS, overcoming the structural design bottlenecks of this traditionally “undruggable” target and broadening the application boundaries of AI in challenging oncology targets.
• In April, the UAE team announced the successful nomination of ISM0387, an MTA-cooperative PRMT5 inhibitor, less than 12 months after launching local AI drug R&D. It achieved hit compound generation within 30 days and lead optimization within 6 months, validating the efficient response and cross-border synergistic capabilities of the overseas R&D center.
• In the same month, the Company announced the nomination of ISM6200, a potential best-in-class selective NR3C1 antagonist. It showed dose-dependent anti-tumor activity and the potential to regulate hypercortisolism-associated obesity in preclinical models, enriching the pipeline reserve in the intersection of metabolism and oncology.
• In July, the Company announced the nomination of a potential first-in-class brain-penetrant non-opioid pain relief candidate, ISM9528, targeting Target Z, a novel target identified with the assistance of PandaOmics. Its preclinical analgesic efficacy surpasses that of morphine, opening a new path to address the addiction pain points of traditional opioid drugs.
• In August, the Company announced the nomination of ISM9077, a Target Y inhibitor featuring a novel molecular structure. Both its oral and ophthalmic formulations exhibit good permeability and safety, with efficacy reaching up to three times that of marketed regimens, breaking the administration limitations of existing therapies and improving compliance. In the same month, the Company announced the nomination of ISM0900, an AI-driven, highly selective oral small-molecule Lp(a) inhibitor. Characterized by rapid onset and excellent efficacy, it pushes the R&D pipeline deeper into the multi-billion-dollar lipid management market.
• Additionally, during the period, the Company announced the nomination of a highly selective Nav1.8 inhibitor for the treatment of both acute and chronic pain while avoiding abuse liability.

Meanwhile, supported by partners and driven by the internal team, self-developed or co-developed pipeline programs achieved 7 clinical advancements globally, with AI scalable innovation outcomes densely entering mid-to-late stage clinical validation:

• Rentosertib (ISM001-055): The core pipeline Rentosertib officially initiated a large-scale Phase III clinical trial in China for idiopathic pulmonary fibrosis (IPF) to evaluate the efficacy and safety of 52-week treatment.
• Rentosertib (Inhalation): In April, Insilico Medicine announced that the nebulized inhalation formulation for this leading pipeline received IND clearance from China’s CDE and will initiate clinical studies.
• Garutadustat (ISM5411): In January, Insilico Medicine announced that Garutadustat, an innovative PHD inhibitor with gut-restricted properties, successfully completed first-patient dosing in the Phase IIa BETHESDA clinical trial for the treatment of inflammatory bowel disease (IBD).
• ISM8969/HT-001: In January, the brain-penetrant NLRP3 inhibitor ISM8969/HT-001, co-developed by Insilico Medicine and Hygtia Therapeutics, received IND approval from the US FDA.
  • In June, ISM8969/HT-001 completed first-in-human dosing in a Phase I clinical trial, which is designed to evaluate the safety, tolerability, PK, and PD profiles.
  • In August, ISM8969/HT-001 was announced to have received IND clearance from China’s CDE for the treatment of Parkinson’s disease.
• ISM9682 (MEN2501): In February, Insilico Medicine announced that the anti-tumor candidate MEN2501 (ISM9682), out-licensed to Menarini, successfully completed first-in-patient dosing in a Phase I clinical trial, triggering a US$5 million milestone payment.
• ISM6331: In July, Insilico Medicine announced that the pan-TEAD inhibitor ISM6331 was granted Fast Track Designation (FTD) by the US FDA, which may support an expedited development and review process, subject to applicable regulatory requirements. Relevant clinical results were accepted by the ESMO Congress 2026 and will be presented as a rapid oral presentation at the conference.

Towards Pharmaceutical Superintelligence: AI Agents and Foundation Model Ecosystem Expand with Picked-up Paces

In 2014, Insilico Medicine embarked on the exploration of generative AI-empowered drug innovation starting from the biological analysis algorithm iPANDA. Over more than a decade of development, this algorithm, once published in authoritative journals, has gradually evolved into the Pharma.AI platform covering the entire drug discovery process. It has further expanded into frontier areas such as AI Agents, embodied intelligence, and model training and evaluation, driving AI from auxiliary analysis to autonomous decision-making and synergistic execution.

In the field of AI Agents, Insilico Medicine has perfected its matrix layout. In March, the Company launched PandaClaw, an agent-enhanced module of PandaOmics. Through natural language conversational interaction, it supports complex biological analysis and empowers R&D workflows such as target screening and indication exploration, lowering the barrier for researchers to use AI tools. In May, the Company released LabClaw, the industry’s first autonomous laboratory operating system based on a lightweight agent architecture. Utilizing AI agents to coordinate over 20 modular experimental steps, it drives the transition of life science laboratories from automated execution of preset instructions to autonomous coordination and assisted decision-making.

In terms of vertical foundation model infrastructure and industry standard construction, the Company released Science MMAI Gym, a life science foundation model training framework, in January. Consolidating approximately 120 billion tokens and over a thousand benchmarks, this framework provides a core foundation for enhancing the professional logical reasoning capabilities of general models in the fields of chemistry and biology. Building on this, in April, the Company launched three major benchmark leaderboard portals focusing on general scientific reasoning and end-to-end drug discovery capabilities, evaluating mainstream foundation models based on Insilico Medicine’s practical experience, with results published publicly via interactive web pages. In July, Insilico Medicine further refined and expanded the benchmark leaderboards, launching the Drug Discovery and Development (DDD) Benchmarks as a Service (BaaS) business. Through transparent and objective head-to-head capability comparisons, it establishes a scientific and fair AI drug discovery model evaluation system for the industry.

In terms of the computing power and cloud service ecosystem, the Company allied with Google Cloud in May to further solidify the computing and cloud foundation for life science models, accelerating the transformation of core R&D workflows by AI agents. In July, it joined hands with Tencent Health to jointly advance the co-training, optimization, and deployment of life science-specialized models based on the MMAI Gym framework.

In addition, Insilico Medicine is actively expanding the cross-application of AI with frontier sciences and emerging industries. Its previous collaboration with Saudi Aramco has entered the results validation stage, with research outcomes on metal-organic frameworks (MOFs) validation frameworks and the sorbaMOF DB database publicly submitted to peer-reviewed journals. Concurrently, the Company participated in the investment of Yuanma Therapeutics to co-build the next-generation mRNA AI-native R&D engine.

By strategically laying out AI agents, vertical foundation models, model evaluation, cloud computing power, and industrial capital, Insilico Medicine is expanding its AI capabilities from traditional small molecule drug discovery to new modalities such as PROTAC, in vivo CAR-T, and mRNA, and extending into diverse application scenarios like advanced materials and agriculture, continually broadening the capability boundaries of Pharmaceutical Superintelligence (PSI).

Concurrent Analyst Coverage and Index Inclusions Elevate Insilico Medicine’s Attention in the Capital Market

Since its successful listing on the Main Board of the Hong Kong Stock Exchange at the end of 2025, Insilico Medicine has garnered widespread attention from the capital market. Currently, the Company is covered by research reports from 13 domestic and international brokerage firms, including Jefferies, J.P. Morgan, UBS, Morgan Stanley, CITIC Securities, CICC, Guotai Haitong, GF Securities, Sinolink Securities, HSBC, Shenwan Hongyuan, Guosheng Securities, and Southwest Securities (in no particular order). Multiple institutions have given positive evaluations regarding the Company’s AI drug discovery platform, clinical-stage pipeline, and commercial potential.

In addition to the continuous expansion of sell-side coverage, Insilico Medicine’s representation in the capital market has also been steadily rising. On March 9, 2026, Insilico Medicine was officially included in the Hong Kong Stock Connect and became a constituent of the Hang Seng Composite Index. Subsequently, the Company was successively included in major index systems such as the CSI series, FTSE series, and the MSCI Global Small Cap Indexes (will be effective after market close on August 31, 2026). Inclusion in the Stock Connect broadens the channels for mainland investors to participate in investing in Insilico Medicine; being included in multiple mainstream indexes helps enhance the Company’s visibility among international institutional investors, attracts more attention from index funds and passive capital, and further improves stock liquidity.

Recognition at the industry level also continues to accumulate. Recently, Insilico Medicine once again received a nomination for “Best Startup” at the Prix Galien USA Awards, known as the “Nobel Prize of Biopharmaceuticals”. Previously, the Company was named in Fast Company’s list of the World’s Most Innovative Companies, and the #3 Most Innovative Biotech Company of 2026, sharing the list with renowned global tech enterprises such as Google and Nvidia. These honors further reflect the international industry’s attention to Insilico Medicine’s AI drug discovery capabilities and development potential from the perspectives of technical innovation and industrial impact.

For Insilico Medicine, achieving full profitability in the first half of 2026 validates the feasibility of its commercial model and provides a more robust financial foundation for subsequent R&D investment and business expansion. Looking ahead, the Company will continue to advance the development of its clinical-stage pipeline and early-stage drug discovery, deepen the development and validation of innovative AI models, and accelerate the upgrading of infrastructure such as automated laboratories, driving AI capabilities to further permeate the entire drug R&D process.

Standing at a new starting point after crossing the profitability watershed, Insilico Medicine will continue to uphold its vision of “to extend healthy productive life for everyone”. Through solid scientific research outcomes and continuously increasing commercial value, the Company will respond to the long-term trust of the industry, clients, and the capital market.

Conference Call Information:

The English session of the conference call will be held at 8:00 PM on August 26, 2026, Beijing Time (8:00 AM U.S. Eastern Time on August 26, 2026), and the Mandarin session of the conference call will be held at 9:00 AM Beijing Time on August 27, 2026 (9:00 PM U.S. Eastern Time on August 26, 2026).

The conference calls can be accessed by the following links:

For English Session:

Time: August 26, 2026, Wednesday, 8:00 PM Beijing Time
(August 26, 2026, Wednesday, 8:00 AM U.S. Eastern Time)

Webcast and Conference Call Links:

All webcast participants must use the link provided below to complete the online registration process to access the webcast.

• Live Webcast Link: https://edge.media-server.com/mmc/p/228ougvy

For participants who wish to ask live questions during the conference, please complete online registration using the teleconference call link provided below. Upon registration, each participant will receive details for the conference call, including dial-in numbers, and a unique access PIN. Registered participants can dial in from their phone using a dial-in and PIN number or you can choose a “Call Me” option to have the system automatically call them at the start of the conference.

• Live Teleconference Call Link: https://register-conf.media-server.com/register/BI342a12da9bb4478fafd7e56011bd381f

For Mandarin Session:

Time: August 27, 2026, Thursday, 9:00 AM Beijing Time
(August 26, 2026, Wednesday, 9:00 PM U.S. Eastern Time)

Webcast and Conference Call Information:

• Live Webcast Link：https://s.comein.cn/uztddn2m

Alternatively, participants may dial in to the conference call using below dial-in information.

Mainland China +86-4001888938
International +86-01053827720
Taiwan, China +886-277083288
United States +1-2087016888
Singapore +65-31389722
Hong Kong, China +852-51089680
Password: 142221

The replay of English session will be available shortly after the call and can be accessed by visiting the Company’s website at https://insilico.com/.

About Insilico Medicine

Insilico Medicine is a pioneering global biotechnology company dedicated to integrating artificial intelligence and automation technologies to accelerate drug discovery, drive innovation in the life sciences, and extend health longevity to people on the planet. The company was listed on the Main Board of the Hong Kong Stock Exchange on December 30, 2025, HKEX:3696.

By integrating AI and automation technologies and deep in-house drug discovery capabilities, Insilico is delivering innovative drug solutions for unmet needs including fibrosis, oncology, immunology, pain, and obesity and metabolic disorders. Additionally, Insilico extends the reach of Pharma.AI across diverse industries, such as advanced materials, agriculture, nutritional products and veterinary medicine. For more information, please visit www.insilico.com.

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SOURCE Insilico Medicine