INSILICO (03696) has announced its interim results for the first half of 2026, posting revenue of approximately $106 million, a surge of about 2.87 times year-over-year. Gross profit climbed to $95.965 million, marking a substantial increase of roughly 3.17 times compared to the prior corresponding period. Research and development expenses rose by 38.7% to $49.3 million during the same timeframe.

The company achieved an adjusted profit of $51.227 million and a net profit of $35.537 million, both representing a swing back to profitability on a year-over-year basis. According to the official announcement, the increase in R&D spending was primarily driven by three factors: (i) higher CRO costs stemming from the expansion of the clinical pipeline and the addition of new early-stage development programs, (ii) elevated personnel expenses due to an increase in headcount and performance bonuses as project delivery progressed smoothly, and (iii) rising share-based compensation expenses from granting stock options and restricted share units to the R&D team as part of efforts to incentivize and retain top talent.

The company's business momentum has been notably robust this year, fueled by multiple out-licensing and research collaboration agreements signed with global multinational and Asian pharmaceutical companies. As of the latest practicable date, the total contract value of deals announced in 2026 stands at approximately $7.3 billion. For the six months ended June 30, 2026, revenue from the drug discovery and pipeline development segment reached $103 million, a significant increase of 331.3% from $23.9 million in the corresponding period of 2025. These major partnerships not only validate INSILICO's AI platform capabilities in empowering the global biopharmaceutical industry but also serve as the primary engine driving the company's revenue growth.

In March 2026, INSILICO announced a global R&D collaboration with Eli Lilly. This agreement grants Lilly an exclusive global license to develop, manufacture, and commercialize potential best-in-class novel oral therapeutics targeting specific indications currently in preclinical development. Furthermore, the company combines its advanced Pharma.AI platform with Lilly's development capabilities and deep disease-area expertise to collaborate on multiple research projects focused on targets selected by Lilly. INSILICO is entitled to an upfront payment of $115 million, with the potential total transaction value reaching approximately $2.75 billion. This partnership underscores the high recognition and sustained confidence that leading global pharmaceutical companies place in the scalability and commercial value of the company's AI-driven drug discovery platform.

Additionally, the company has entered into a strategic co-development agreement with Hengtai Biopharma to advance ISM8969, an AI-powered, brain-penetrant NLRP3 inhibitor designed for the treatment of Parkinson's disease. This 50/50 global rights collaboration enables both parties to leverage their respective strengths in clinical development and commercialization. As part of this partnership, INSILICO is eligible to receive up to $66 million in upfront and milestone payments, highlighting the substantial potential of this best-in-class candidate for neurodegenerative diseases.