Bayer and Iambic partner on AI-driven small molecule drug discovery

Bayer and Iambic Therapeutics Inc. have announced a drug discovery collaboration focused on small molecule discovery, according to a press release from the companies.

Under the agreement, Bayer will use Iambic's AI-driven platform, which includes two AI technologies called Enchant and NeuralPLexer, to identify drug candidates targeting molecules that have been difficult to address through traditional methods.

Iambic will receive an upfront payment as well as milestone and royalty payments under the terms of the deal. Financial terms were not disclosed.

Juergen Eckhardt, Head of Business Development and Licensing at Bayer Pharmaceuticals, said the collaboration aims to "accelerate scientific insights and improve decision-making across the R&D value chain."

Tom Miller, Co-Founder and CEO of Iambic, said the partnership gives Bayer "access to industry-leading technology" and expands "the universe of potential life-saving medicines."

The press release notes that traditional drug discovery takes 10 to 15 years and costs around $2.6 billion, with more than 90% of candidates failing in clinical trials. The collaboration aims to accelerate optimization timelines and strengthen Bayer's pipeline.

Bayer, headquartered in Berlin, reported sales of €45.6 billion and R&D expenses of €5.8 billion in fiscal 2025. Iambic is a clinical-stage company based in San Diego.

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