Insilico Medicine (HKEX: 3696), a Hong Kong-based clinical-stage biotechnology company that utilises generative artificial intelligence (AI), announced on Tuesday that it has signed a co-development collaboration agreement with Hygtia Therapeutics Co Ltd, a Chinese biotechnology company incubated by the Shenzhen Pengfu Fund of Fosun Health Capital and Fosun Pharma.

Through the partnership, the two parties aim to accelerate the global advancement of ISM8969, an orally available, brain penetrant NLRP3 inhibitor for Central Nervous System (CNS) disorders.

Under the terms of the agreement, Insilico grants Hygtia Therapeutics 50% worldwide rights to research, develop, register, manufacture, and commercialise ISM8969. In return, Insilico is eligible to receive upfront and milestone payments totalling up to USD66m, including an initial upfront payment of USD10m expected within 30 days of the agreement's effective date.

Insilico will lead the initial clinical development, including IND submission and execution of the Phase 1 clinical trial for the Parkinson's disease indication. Hygtia Therapeutics will assume leadership of subsequent global clinical studies, regulatory submissions, and commercialisation activities.