AI drug discovery firm BenevolentAI (OTC:BAIVF) reported positive momentum and said it is in a strong position to continue with its strategy under new chief executive Dr Joerg Moeller.
Chief among 2023 highlights was the addition of a second big pharma collaboration, in the form of Germany’s Merck, adding to existing work with AstraZeneca that began in 2022.
Under the new collaboration, BenevolentAI (OTC:BAIVF) will be eligible for payments of up to $594 million, consisting of a multimillion-dollar upfront payment on signing and then potential discovery, development and commercial milestones.
The initial three targets are in oncology, neurology and immunology.
The company had cash and equivalents of £72.9 million at the end of the last calendar year, compared with just over £84 million at the end of June.
Normalised operating losses were cut to £72.7 million compared to £94.6 million a year earlier as revenue decreased to £7.3 million from £10.6 million, mainly reflecting a dip in revenues from the ongoing AstraZeneca collaboration partly offset by the new Merck partnership.
A strategic review at the start of the period, which included reducing headcount and cash burn by around 30% and 40% respectively, extended the cash runway to mid-2025 as it continues to invest in the AI Platform while developing its own pipeline of wholly-owned assets.
Moeller, who started in January, also hailed other operational progress despite what he called a “challenging first half” of the year, including the completion of pre-clinical development of Benevolent’s glioblastoma multiforme asset, and also the initiation and progress almost to completion of a Phase Ia study of the company’s lead asset in ulcerative colitis.
“During the year, we also invested to further enhance the Benevolent Platform and will continue to leverage it to deliver on our patientcentric revenue generation strategy,” he said.