UK-based AI drug discovery company BenevolentAI and Exscientia have entered into strategic partnerships with pharmaceutical company Merck to identify and develop new compounds against three targets provided by Merck through hit identification to the pre-clinical stage.

The collaboration will allow Merck to leverage BenevolentAI's AI platform and team to identify and develop novel compounds for drug development, initially targeting oncology, neurology, and immunology. BenevolentAI will use its AI chemistry design tools and wet lab facility to deliver small molecule drug development candidates into the Merck pipeline.

Through the partnership, BenevolentAI will receive upfront and milestone payments of up to USD 594 million and royalties on net sales of any commercialized products. 

In addition, Merck will also combine Exscientia's AI-driven precision drug design capabilities with its own disease expertise in oncology and neuroinflammation for the discovery of novel small molecule drug candidates. 

Exscientia will receive an upfront cash payment of USD 20 million and is eligible for milestone payments of up to USD 674 million in discovery, development, regulatory, and sales-based milestones for three projects, in addition to single- to double-digit royalty payments on net sales.