Lilly, Profluent Ink Deal on AI Drugs Worth Up to $2.25 Billion

Eli Lilly & Co. has signed a deal with the AI startup Profluent Inc. worth up to $2.25 billion to find new ways to edit DNA, the company’s latest bet that artificial intelligence can transform drugmaking.

Under the collaboration, announced Tuesday, Lilly will have the exclusive rights to new medicines that Profluent develops and will pay up to $2.25 billion if the drugs hit certain milestones.

Typically, it takes about a decade and costs over $1 billion to develop a new drug. About 90% of candidates fail before making it to the finish line. The pharmaceutical industry is pouring billions ...