Formation Bio, a New York-based, AI-native pharmaceutical company, announced on Wednesday the Formation Bio Drug Development Accelerator Fund with USD600m in capital commitments.

This fund is designed to expand the company's portfolio of clinical-stage medicines. Combining dedicated capital with Formation Bio's AI-native development platform and clinical operating infrastructure, the fund is intended to support the company's ambition to acquire 10-15 drug programmes over the next 3-5 years and advance them through key clinical milestones.

The fund's limited partners include leading research foundations, institutional endowments, hospitals, and philanthropic organisations.

According to Formation Bio, the fund helps scale the company's hub-and-spoke model, exclusively financing the acquisition and development of drug programmes within its portfolio. Formation Bio serves as the fund's general partner through a wholly owned subsidiary and has committed its own capital alongside the fund's limited partners.

Each funded program is housed in a standalone corporate entity supported by Formation Bio's established development organisation, keeping the economics of each asset financially distinct, while allowing more capital to be directed toward clinical development rather than toward separate, redundant operating infrastructure within multiple companies.