Formation Bio, a startup dedicated to leveraging AI in drug development and supported by OpenAI CEO Sam Altman, has secured over $250 million to advance its ambitious product roadmap.
In an announcement on Wednesday, Formation disclosed that it successfully raised $372 million in a Series D funding round spearheaded by Andreessen Horowitz, with notable contributions from Sanofi, Sequoia, Thrive, Emerson Collective, Lachy Groom, SV Angel Growth, and FPV Ventures. This recent funding round brings Formation’s total raised capital to more than $600 million, which will primarily be allocated towards bolstering partnership acquisition efforts and furthering research and development initiatives.
Although Formation did not disclose its new valuation, a spokesperson mentioned to TechCrunch that it represents a significant increase from the $1 billion valuation during its Series C funding round.
Formation, formerly known as TrialSpark, was co-founded by Benjamine Liu and Linhao Zhang in 2016. Liu’s background in computational biology from research at Oxford and UPenn complements Zhang’s software development expertise gained from positions at Salesforce and Oscar Insurance as a product engineer.
Specializing in innovative solutions for clinical trials and drug development, Formation collaborates with biotech and pharma companies to license and co-develop drugs, progressing them beyond clinical proof-of-concept.
By employing AI to optimize clinical trial processes such as study initiation, participant recruitment, and data management, Formation aims to enhance operational efficiency. The company’s AI models generate patient recruitment materials, reports adverse events, and offers recommendations for R&D decisions, as well as predicting drug toxicity, tolerability, and efficacy.
Recently, Formation entered into a partnership with OpenAI and Sanofi to develop customized AI solutions for drug development. OpenAI’s contribution of AI capabilities and expertise combined with Sanofi’s proprietary data underscores the potential to revolutionize the industry.
Regarding Formation’s drug pipeline, the company currently has three drug candidates in various stages of clinical testing, including treatments for chronic hand eczema, sensory neuropathy, and knee osteoarthritis. The hand eczema treatment has progressed to the final phase of testing before regulatory approval.
The landscape of AI in drug development is rapidly evolving, with numerous startups like EvolutionaryScale emerging. Market projections estimate the AI in drug discovery market to reach $4.9 billion by 2028, with key players like Xaira, Isomorphic, Insilico, Profluent, Enveda, and Causaly driving innovation in the space.
