TLDR
- Eli Lilly launches TuneLab, an AI and machine learning platform for drug discovery
- Platform includes proprietary data obtained at over $1 billion cost
- Biotech companies get access to Lilly’s research models in exchange for contributing training data
- Circle Pharma and insitro announced as initial partners for cancer and small molecule drug development
- LLY stock down 4% year-to-date and 19% over past 12 months
Eli Lilly announced Tuesday the launch of TuneLab, an artificial intelligence and machine learning platform designed for biotech companies. The platform provides access to drug discovery models trained on years of Lilly’s research data.
The pharmaceutical giant invested over $1 billion to obtain the proprietary data that powers TuneLab. Drug developers are increasingly adopting AI technologies for discovery and safety testing to achieve faster and cheaper results.
This shift aligns with FDA initiatives to reduce animal testing in the near future. TuneLab represents Lilly’s effort to share its AI capabilities with smaller companies that lack similar resources.
“Lilly TuneLab was created to be an equalizer so that smaller companies can access some of the same AI capabilities used every day by Lilly scientists,” said Daniel Skovronsky, chief scientific officer. He leads Lilly Research Laboratories and Lilly Immunology as president.
The platform operates through a partnership model. Selected biotech partners contribute training data in exchange for platform access.
This data sharing fuels improvements that benefit the entire ecosystem. The arrangement creates a collaborative environment for drug development advancement.
Partnership Structure and Technology
TuneLab was developed through partnerships with global technology providers and AI experts. The platform uses federated learning technology to protect member companies’ data privacy.
A third-party hosts the platform. This setup allows member companies to train models while keeping their data in private environments.
The data remains segregated from Lilly and other biotech users. This privacy protection addresses concerns about sharing sensitive research information.
Initial Partners and Applications
Circle Pharma and insitro have announced partnerships with Lilly through TuneLab. Circle Pharma will focus on developing cancer therapies using the platform.
Insitro plans to develop small molecule drugs. These partnerships demonstrate the platform’s versatility across different therapeutic areas.
Lilly intends to expand TuneLab’s features beyond the initial release. The company plans to add in vivo small molecule predictive models.
Stock Performance and Market Response
LLY stock has declined 4% year-to-date. The stock has dropped approximately 19% over the past 12 months.
On Stocktwits, retail sentiment around LLY stock remained bearish over the past 24 hours. Message volume increased from extremely low to low levels following the announcement.
The TuneLab launch represents Lilly’s strategy to monetize its research investments while fostering industry collaboration. The platform could generate new revenue streams while advancing drug discovery capabilities across the biotech sector.
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