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Feb 19, 2026
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NewDecoded
3 min read
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Insilico Medicine and Hygtia Therapeutics announced a strategic license and co-development agreement on January 20, 2026, targeting central nervous system disorders. The deal focuses on ISM8969, an orally available drug candidate designed to cross the blood-brain barrier. Under the terms, the companies share equal worldwide rights while Insilico remains eligible for up to 66 million dollars in milestone payments.
The drug candidate was discovered using Chemistry42, a proprietary generative AI platform that streamlines the design of complex molecules. This technology allowed researchers to optimize ISM8969 specifically for central nervous system penetration, a major challenge in traditional drug discovery. By utilizing AI, the team achieved robust efficacy and a favorable safety profile in preclinical models.
Responsibility for the program is split between the two biotech entities to maximize efficiency. Insilico Medicine will lead the initial regulatory submissions and conduct the Phase 1 clinical trial for Parkinson’s disease. Following these early stages, Hygtia Therapeutics will take over subsequent global clinical development, regulatory filings, and commercialization efforts.
ISM8969 targets the NLRP3 inflammasome, a key driver of neuroinflammation linked to diseases like Parkinson’s and Alzheimer’s. While other inhibitors exist, they often fail to reach the brain effectively. This AI-designed molecule aims to halt the underlying causes of neuronal death rather than simply treating visible symptoms.
Leadership at both firms expressed confidence in the technology-driven approach to addressing unmet medical needs. Ren Feng, Chief Scientific Officer of Insilico, emphasized that the generative AI platform was essential to engineering a molecule capable of overcoming the blood-brain barrier. Hygtia Therapeutics, backed by Fosun Pharma, noted that this collaboration aligns with their strategy to introduce best in class neuroscience innovations globally.
Hygtia Therapeutics, which was founded in August 2025, serves as a specialized vehicle for neuroscience within the Fosun ecosystem. This partnership builds on previous successful collaborations between Insilico and Fosun, such as the QPCTL program initiated in 2022. By combining AI-led discovery with established clinical infrastructure, the parties aim to accelerate the delivery of breakthrough treatments.
The partnership marks a significant maturation point for AI-designed drugs in the competitive biotech landscape. By moving an AI-generated molecule into the clinic within months of preclinical success, Insilico validates its end to end platform and its ability to attract high-tier commercial partners like Fosun.
For the broader industry, this deal underscores a shift toward specialized AI engines as the primary source of innovation for complex, hard-to-target conditions like neurodegeneration. Following Insilico's recent IPO in late 2025, this agreement demonstrates the commercial scalability of generative medicine.