Insilico Medicine issues positive profit guidance for the first half of 2026

July 9, 2026,Insilico Medicine (HKEX: 3696), a clinical-stage drug discovery company powered by generative artificial intelligence (AI),Today's announcement provides a profit warning for the interim results as of June 30, 2026. The company expects that for the first half of 2026it will record revenue of approximately USD 102.5 million to USD 106.5 million, representing an increase of approximately 272.7% to 287.3% compared to the same period last year; net profit is expected to be approximately USD 33.5 million to USD 39.5 million, with adjusted net profit projected at approximately USD 45.5 million to USD 51.5 million. This strong performance primarily reflects the group’s ongoing strategic initiatives to drive revenue growth and systematic improvements in operational efficiency.

Dr. Alex Zhavoronkov, Founder, Chairman of the Board, Co-Chief Executive Officer, and Chief Business Officer of Insilico Medicine, stated: “Since the beginning of 2026, we have secured multiple collaboration agreements, providing strong momentum for our financial growth. Today, Insilico Medicine operates synergistically as a leading artificial intelligence platform, a cutting-edge automated science laboratory, and a highly efficient innovative biotechnology company, with multiple programs in clinical and late preclinical stages. We look forward to achieving sustained profitability.”

Global Collaborations Drive Financial Growth

This significant increase in performanceis attributable to the company’s successful progress in advancing global out-licensing, co-development, and research collaborations during the first half of 2026.During this period, Insilico Medicine has successively announced partnerships withServier、Hengtai Biotech、Qilu Pharmaceutical、China Medical System Holdings、Yuanyi Biotech、Eli Lilly and CoandSK Biopharmaceuticalsand other domestic and international partners on multiple pipeline licensing or drug development collaborations. These high-impact collaborations, which continue to materialize, not only reflect the proven value of Insilico Medicine’s AI platform in empowering the global industry but have also become a key driver of the company’s revenue growth.

In addition to securing several new high-profile external collaborations, the company has also achieved multiple milestone advancements in its existing collaborative programs,further enhancing the sustainability of revenue recognition and the resilience of long-term partnerships.In the first half of 2026, Insilico Medicine achieved several key collaboration milestones in projects withHisun Pharmaceutical、Menarini、TaiGen BiotechnologyandHengtai Biotechand other partners.

Meanwhile, the company continues to deepen its global collaboration network and strengthen its global footprint in synergistic innovation for drug development and strategic ecosystem building. It has made positive progress in collaborations withMemorial Sloan Kettering Cancer Center、ASKA Pharma、Saudi Aramcoand other institutions and companies, further expanding the scope of cooperation; and has established partnerships withTigermed、Ascend Biopharma、Joinn Laboratories、RiboBio、Etern Therapeuticson new R&D paradigms or novel molecular entities, further enhancing synergies across research, translation, and industrialization.

AI platform upgrades strengthen the foundation for innovation

Another key driver supporting earnings growth comes from enhanced capabilities of its artificial intelligence platform. Since 2026, Insilico Medicine has continuously optimized the three core components of Pharma.AI—Biology42, Chemistry42, and Science42—and is actively advancing in AI Agents and Physical AI to accelerate strategic implementation."Pharmaceutical Superintelligence (PSI)"strategy execution.

Among these initiatives, the company has launchedPandaClawwithLabClawtwo intelligent agent systems.PandaClaw deeply integrates AI agents with biological and bioinformatics engineering,enabling automation and real-time execution of biological analysis workflows through an intuitive, intelligent natural language interface, empowering complex biological tasks and accelerating translational medicine research; LabClaw is an autonomous laboratory system designed based on a lightweight agent architecture, which coordinates experimental workflows through multiple types of AI agents, enabling Insilico Medicine's Life Star 2 smart lab to transition from 'automated instruction execution' to 'autonomous coordinated decision-making,' further enhancing experimental efficiency and R&D collaboration capabilities.

Additionally, as a key infrastructure component of the PSI strategy, the company launched a foundational model training framework for the life sciences vertical in January 2026Science MMAI Gym. This frameworkconsists of two core components: foundational model training and benchmark evaluation, integrating over 1,000 drug discovery benchmark tests and approximately 120 billion tokens of pharmaceutical-domain data. Leveraging high-quality industry data, a scientific reasoning task suite, and reinforcement learning mechanisms, it conducts deep training of general-purpose foundational models to enhance their domain-specific comprehension, logical reasoning, and task execution capabilities in chemistry, biology, and drug discovery.Liquid AIannounced the first collaboration under MMAI Gym and delivered a lightweight scientific foundational model; in May, itHuman Longevityentered into a multimillion-dollar AI model co-development partnership to jointly build the industry’s first AI foundational model dedicated to longevity research via MMAI Gym.

Furthermore, at the level of AI infrastructure and ecosystem, Insilico Medicine also partnered withMicrosoft Azure、Google CloudCollaborating with partners to integrate foundational models, computing infrastructure, and life science research capabilities for broader application in drug discovery and project execution.

Accelerated pipeline progress realizes long-term value

In terms of the R&D pipeline,Insilico Medicine has achieved multiple significant advances in clinical development, further demonstrating the company's execution efficiency in translating its AI platform into clinical outcomes.Among these, the most closely watched is Rentosertib (ISM001-055), the world’s first drug discovered using AI, which is being developed for the treatment of idiopathic pulmonary fibrosis.Its Phase III clinical trial was officially initiated recently.Additionally, Garutadustat (ISM5411), developed for inflammatory bowel disease,has dosed its first subject in a Phase IIa clinical trial.Furthermore, ISM8969, an NLRP3 inflammasome inhibitor co-developed with Hengtai Biotechnology,has received FDA IND approval., and in Phase I clinical studiescompleted the first-in-human dosing; additionally, Rentosertib inhalation formulation recentlyreceived clinical trial approval。

In the preclinical stage,Insilico Medicine demonstrated the efficiency advantages and economies of scale of AI-driven preclinical R&D. In the first half of 2026, leveraging its generative AI platform and automated laboratories, the company efficiently nominated six preclinical candidate compounds (PCCs), includinga GIPR antagonist, ISM0676, which achieved up to 31.3% body weight reduction in preclinical models,andan NLRP3 inhibitor, ISM5059, for the treatment of systemic inflammatory diseases, a pan-KRAS-targetingoncology candidate drug ISM6166, a potentially best-in-classNR3C1-selective antagonist ISM6200, and PRMT5 inhibitor ISM0387, for which early-stage research was completed by Insilico Medicine’s UAE team,PRMT5 inhibitor ISM0387marking the first milestone in AI-driven innovative drug discovery in the Gulf region.

As of June 30, 2026, Insilico Medicine has nominated 31preclinical candidate compoundcandidates spanning multiple therapeutic areas including oncology, immunology, metabolism, and central nervous system disorders, with 13 having received IND approvals. Currently, the company has 10 programsundergoing clinical trials, of which four are being advanced independently by the company through clinical development, and another six are being studied clinically with support from partners.

The positive profit guidance for the interim results in 2026 reflects the outstanding outcomes achieved through Insilico Medicine’s business model, which simultaneously pursues external licensing of its pipeline assets, industrial R&D collaborations, commercialization of its software and platform capabilities, and internal pipeline advancement. As Insilico Medicine continues to make breakthroughs in global business expansion, AI platform development, and internal pipeline progression—progress that is gradually translating into revenue growth and improved profitability—the company's business model and operational efficiency are being further validated.

Looking ahead, with its expanding global collaboration network, accelerated integration of AI capabilities and automation across the entire R&D workflow, and multiple clinical and preclinical programs advancing steadily, the company is accelerating its evolution into a next-generation biotech platform that combines technological leadership with commercial sustainability.

About Insilico Medicine

Insilico Intelligence is a global pioneer in biotechnology, dedicated to integrating artificial intelligence and automation technologies to accelerate drug discovery and drive innovation in the life sciences, empowering people to live longer and healthier lives. The company was listed on the Main Board of the Hong Kong Stock Exchange on December 30, 2025, under stock code 03696.HK.

Leveraging its proprietary Pharma.AI platform and advanced automated biology laboratories, Insilico Intelligence is delivering innovative drug solutions for underserved therapeutic areas including fibrosis, oncology, immunology, pain, obesity, and metabolic disorders. Additionally, the company continues to expand the applications of Pharma.AI into diverse fields such as advanced materials, agriculture, nutritional products, and veterinary medicines. For more information, please visit www.insilico.com.

Forward-Looking Statements:

This press release contains forward-looking statements concerning potential future business developments of the Company and its subsidiaries, such as anticipated future events, business outlook, or financial performance. Words such as “expect,” “anticipate,” “continue,” “estimate,” “aim,” “sustain,” “may,” “will,” “forecast,” “should,” “believe,” “plan,” “intend,” “vision,” “arrange,” and similar expressions are intended to identify such forward-looking statements. These statements are based on assumptions and analyses made by the Company as of the date of this press release, drawing upon its experience, understanding of historical trends, current conditions, expected future developments, and other factors the Company believes to be reasonable. However, there is uncertainty as to whether actual results and developments will meet the Company’s current expectations and forecasts. Actual results, performance, and financial condition may differ materially from the Company’s expectations.

All forward-looking statements included in this press release are subject to the limitations stated herein. Accordingly, these forward-looking statements should not be construed as representations by the Board of Directors or the Company that such plans and objectives will be achieved, and investors should not place undue reliance on them.

The Company, its Board of Directors, employees, and agents assume no obligation (i) to correct or update any forward-looking statements contained in this press release; and (ii) to bear any liability for any losses arising from the failure of any forward-looking statement to materialize or from its inaccuracy.

Note: Insilico Medicine is still finalizing its interim results for the first half of 2026.

The financial information relating to the first half of 2026 included in this press release is based solely on a preliminary assessment of unaudited consolidated management accounts and currently available information. Such financial information has not been reviewed or audited by the Company’s auditors or its Audit Committee and may be adjusted as necessary. Shareholders and prospective investors of the Company should refer to and carefully read the Company’s interim results announcement for the first half of 2026, which is expected to be published in August 2026.

93K Views