Insilico Shares Surge on AI Drug Development Deal with Eli Lilly

Insilico Medicine Cayman TopCo’s shares jumped on Monday after it struck an artificial intelligence-driven drug development deal with Eli Lilly & Co. worth up to $2.75 billion.

Shares of the Hong Kong-based biotech climbed as much as 15% at the market open on Monday, marking its strongest intraday rally in nearly two months.

Under the deal announced Sunday, Insilico will receive $115 million in upfront payments, with additional milestones that could bring the value to $2.75 billion. The company is also eligible for tiered royalties on future sales. In return, Lilly gets the exclusive worldwide rights to develop and ...