AI is revolutionising drug discovery, transforming a traditionally slow and expensive process into a more efficient and cost-effective endeavor. The global AI in drug discovery market, valued at $1.5 billion in 2023, is projected to expand at a compound annual growth rate (CAGR) of 29.7%, reaching approximately $9.1 billion by 2030. This growth is fueled by technological advancements and the increasing adoption of AI in pharmaceutical research. Playing a role in this segment is Isomorphic Labs, an AI-first drug design and development company.
In a recent development, the London-based startup has secured $600 million in its first external funding round. The round was led by Thrive Capital, with participation from GV and follow-on capital from Alphabet. The funding will enable the company to enhance its AI drug design engine and advance its drug pipeline toward clinical trials. However, the valuation of the company remains undisclosed.
Isomorphic Labs will use the fresh capital to push the boundaries of AI research and development. The company’s AI drug design engine leverages proprietary models to predict molecular structures and interactions, helping researchers identify and optimise promising drug candidates. These efforts aim to further refine its capabilities across diverse therapeutic areas and drug modalities, ensuring that the technology remains at the cutting edge.
That said, here are five things to know about Isomorphic Labs.
Brainchild of DeepMind co-founder
Isomorphic Labs, founded in 2021 as a spin-off from Alphabet’s DeepMind, is led by a distinguished team of experts in AI and drug discovery. The company’s mission is to harness AI to revolutionise the drug discovery process.
Demis Hassabis, the founder and CEO, also serves as the CEO of Google DeepMind and was awarded the 2024 Nobel Prize in Chemistry for his pioneering work on AlphaFold 2, an AI system capable of predicting protein structures with remarkable accuracy. Hassabis’s multidisciplinary background includes a PhD in Cognitive Neuroscience from University College London and early career achievements in game design for titles like Theme Park (1994) and Black & White (2001). His expertise in neuroscience, computer science, and gaming uniquely informs his approach to AI innovation.
Advancing drug candidates to clinical trials
A key focus post-funding is to accelerate the clinical progression of drug candidates identified using its AI engine. Isomorphic Labs has built an extensive drug discovery portfolio that includes internal programs in oncology and immunology and partnered programs with Eli Lilly and Novartis. By scaling these programs, the company aims to bring high-impact therapies to patients faster.
Hassabis has stated that one of Isomorphic Labs’ goals is to reduce drug discovery timelines from five years (industry average) to just two years — a benchmark that could transform pharmaceutical development if achieved.
AlphaFold 3: A pivotal breakthrough
Central to Isomorphic Labs’ AI engine is AlphaFold 3, a revolutionary model developed in collaboration with Google DeepMind and released in May 2024. This model surpasses its predecessor by accurately predicting the structure and interactions of complex biological molecules, enabling the discovery of novel drug targets. The integration of AlphaFold 3 has significantly enhanced Isomorphic Labs’ ability to design therapeutics that address unmet medical needs.
AlphaFold 3 incorporates advanced neural network architectures like “Pairformer” and iterative refinement processes termed “recycling,” which continuously improve prediction accuracy for protein interactions with DNA, RNA, and small molecules (ligands). These innovations allow researchers to address previously inaccessible therapeutic challenges.
Strategic expansion of industry partnerships
The company has strategically expanded its partnerships with leading pharmaceutical firms. A notable development is the recent expansion of its collaboration with Novartis, which builds on the success of their initial partnership. Such alliances provide Isomorphic Labs with critical insights and resources to refine its AI models and scale drug discovery efforts.
Unlocking new therapeutic modalities
Isomorphic Labs is pushing the boundaries of AI drug design by exploring multiple therapeutic modalities. These include small molecules, biologics, and other emerging approaches, allowing the company to address a wide range of diseases. Its ability to adapt its models across different modalities gives it a competitive edge in tackling diverse medical challenges.
Ethical considerations also play a role in Isomorphic Labs’ approach to AI-driven drug discovery. The “black box” nature of some AI systems raises concerns about transparency and accountability, issues that Hassabis has acknowledged as critical for building trust among researchers and clinicians alike.
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