Artificial intelligence chemistry outfit Excelsior Sciences is gaining ground on its quest to hasten the discovery and production of small molecules.
The New York City-based company, which spun out of investment firm Deerfield Management, has roped in $95 million to scale its chemical synthesis platform, invest in its internal pipeline and forge partnerships across the industry, including in therapeutics and materials science.
The funding haul includes a $70 million series A round that was co-led by Deerfield, Khosla Ventures and Sofinnova Partners, Excelsior said in a press release Wednesday. Cornucopian Capital, Illinois Ventures, Eli Lilly and the Massachusetts Institute of Technology also participated in the raise.
On top of the series A, Excelsior has collected a $25 million grant from New York’s Empire State Development, the company added in its announcement.
Excelsior asserts that it is developing a “new form of chemistry that machines can do and AI can use to enable closed-loop drug discovery.”
Small molecule drugs make up the vast majority of prescriptions filled in the U.S. and abroad. Many in the biopharma industry have sought to apply AI to the development and production of human drugs, manufacturing materials, veterinary medicines and other products, but, to truly unlock the technology’s potential in the life sciences, AI “requires the ability to make and test new small molecules in multiple assays fast enough to feed data-hungry algorithms,” Excelsior explained.
The company believes it may have cracked the code on automating chemistry, whereas others have previously failed in their attempts to “replicate the traditional artisanal approach to chemical synthesis,” Excelsior said.
The company’s method is rooted in its so-called "smart bloccs" technology, which Excelsior describes as “automated synthesis-friendly chemical building blocks" that serve as a modular chemical language. The company believes it can train AI to work with the "smart bloccs" to derive chemistry insights and guide drug discovery.
Excelsior also figures the timing is right for its technology to makes its debut, given the recent emphasis on reshoring manufacturing and drug discovery to the U.S. The company notes that it is striving to make “reshoring affordable for both discovery and manufacturing” through its novel approach to chemistry.
Over the last 12 months, AI has become an increasingly popular tool in the realm of drug discovery.
Early last month, Eli Lilly—which chipped in on Excelsior’s series A—inked a $100 million-plus biobucks deal with Insilico Medicine to leverage Insilico’s AI platform to jointly identify and advance novel therapeutics. And Flagship Pioneering in October launched Expedition Medicines, supported by a $50 million commitment from its parent, to use AI-powered generative design to “expand the boundaries of small molecule therapies.”
Meanwhile, in late November, the U.S.’ National Security Commission on Emerging Biotechnology (NSCEB) warned that the nation is losing its biotech innovation edge. In order for the U.S. to keep hold of its innovation dominance, the federal government needs to both appreciate the potential of technologies like AI and robotics and empower researchers to use them, among other potential solutions, the NSCEB said at the time.