(Yicai) Jan. 7 -- Shanghai's Pudong Venture Capital and Hong Kong's Value Partners Group will jointly lead American biotechnology startup Insilico Medicine's Series E funding round, which is expected to exceed USD100 million.

Insilico plans to use the funding to enhance its artificial intelligence models and algorithms, establish and upgrade automated laboratories, and advance the development of multiple drug candidates, including ISM001-055 for idiopathic pulmonary fibrosis, a lung-scarring disease, Shanghai Observer reported yesterday, citing the financing agreement.

Shanghai Pudong Construction, a state-backed infrastructure developer, and the Wuxi municipal government in Jiangsu province will participate in this funding round through their investment funds. New York-headquartered private equity firm Warburg Pincus, an existing shareholder, will also contribute.

Founded in 2014, Boston-based Insilico uses AI for drug discovery and development. Though the company has not yet brought any drugs to market, it has secured clinical trial approvals for 10 drug candidates across multiple areas, including cancer, fibrosis, and immunity.

Insilico established a research and development center in Shanghai's Pudong New Area in June 2019. According to the Chinese news report, the firm plans to expand its local operations by establishing its China technology headquarters in Pudong and partnering with local enterprises to advance AI-driven biopharmaceutical development.

Insilico has made two unsuccessful attempts to list on the Hong Kong Stock Exchange, with the latest prospectus expiring last September. According to the listing application, the firm reported a net loss of USD212 million in 2023, a 5 percent improvement from 2022, while revenue increased 70 percent to USD51.2 million.

Editor: Emmi Laine