Algen Biotechnologies has announced a multi-target partnership with AstraZeneca to accelerate immunology therapies using AI-driven drug discovery and CRISPR gene modulation, marking a significant move in biotech innovation.

Under the deal, Algen will receive up to $555 million through upfront payments, milestone payments, and future royalties, contingent on development, regulatory, and commercial achievements.

Based in Berkeley, Algen has raised $11 million in funding, including a $350,000 NIH grant for cancer research focused on AI-powered gene editing to develop new treatments.

Despite increasing investments by pharmaceutical companies in AI to reduce drug development time and costs, very few AI-developed drugs have reached final trials, and none have been approved yet.

Algen’s platform integrates experimental biology with AI, enabling continuous learning and a biology-first approach to predictive, precision drug discovery, aiming to improve translational accuracy.

This collaboration emphasizes a shift toward data-driven, biology-first approaches in drug discovery, combining AI, functional genomics, and high-throughput experimental systems to identify new therapeutic targets.

The platform’s ability to analyze billions of RNA changes aims to uncover genes that actively drive disease, with potential to slow or reverse age-related diseases.

AstraZeneca’s Chief Data Scientist highlights that AI helps discover biologically relevant targets crucial for developing effective therapies, although industry experts remain cautiously optimistic.

AstraZeneca’s chief data scientist, James Weatherall, notes that while AI holds promise, the industry is currently experiencing hype, advocating for a measured approach to its integration.

AstraZeneca’s recent activities include a $1 billion acquisition of Belgian biotech EsoBiotec, gaining immune cell modification technology, reflecting its focus on advanced biotechnologies.

This new deal with Algen does not include an equity stake, but it aligns with AstraZeneca’s broader strategy of increasing AI and machine learning use, exemplified by recent billion-dollar deals involving AI platforms.

AstraZeneca’s respiratory and immunology portfolio generated $4.23 billion in revenue in the first half of 2025, representing about 15% of its total sales, underscoring the importance of innovation in these areas.