Despite widening net losses, Xtalpi reported an 86% increase in revenue to 80 million yuan in the six months ended June. The company generates income by providing drug discovery services to over 100 biotech and pharmaceutical companies and research institutions, including Johnson & Johnson and Pfizer. The use of AI in early-stage drug development could lead to an additional 50 novel therapies worth more than $50 billion in revenue over the next decade, according to a 2022 estimate by Morgan Stanley. However, the technology is still nascent and unproven, with some AI drug discovery companies beginning human trials of their findings.
Key takeaways:
- Xtalpi, a Shenzhen-based company that uses AI to discover potential new drugs, has filed for an initial public offering in Hong Kong.
- The company is the largest AI drug discovery startup by total funding raised, with $732 million since its inception in 2015.
- Xtalpi reported a net loss of 891 million yuan ($125.7 million) in the six months ended June, but also a 86% increase in revenue to 80 million yuan during the same period.
- The company's clients include global leaders like Johnson & Johnson and Pfizer, as well as domestic players such as Sino Biopharmaceutical and CK Life Sciences.