Lisata Therapeutics Inc (NASDAQ:LSTA) and GATC Health have expanded their strategic alliance aimed at accelerating and improving the success rate of drug development using artificial intelligence (AI).
The expanded collaboration builds on prior work in which GATC provided AI-based analysis supporting Lisata’s certepetide drug candidate.
Under the new agreement, Lisata will incorporate GATC’s proprietary Multiomics Advanced Technology (MAT) platform to identify novel AI-predicted combination therapies, including those involving certepetide, across a range of therapeutic areas.
The MAT platform offers predictions of safety, efficacy, and side effects, helping to reduce development risks and support intellectual property claims, according to the company.
As part of the alliance, Lisata will lead the development of a GATC-discovered therapeutic targeting opioid use disorder (OUD).
The drug candidate, identified using GATC’s MAT platform, is a non-opioid small molecule new chemical entity that has demonstrated a significant reduction in fentanyl intake in preclinical murine studies.
This OUD therapeutic is in the advanced preclinical stage and is expected to enter Phase 1 human clinical trials in early 2026.
“This strategic alliance could be a blueprint for combining the power of advanced AI discovery with deep development expertise to unlock new therapeutic possibilities and bring potentially life-saving treatments to patients faster, more efficiently and at significantly lower cost,” Lisata CEO Dr David Mazzo said in a statement.
“We see the arrangement between Lisata and GATC as being both strategically and financially symbiotic for our companies. I’m eager to see the successful advancement of many MAT-discovered compounds through development to patients in need starting with GATC’s OUD molecule.”
Jayson Uffens, GATC’s chief technology officer, expressed enthusiasm over advancing the OUD candidate with Lisata’s team.
“Their team brings a wealth of experience, which includes nearly two centuries of cumulative experience in drug development and several dozen product approvals,” Uffens said.
“Their expertise, established infrastructure, history of capital efficiency, and proven ability to efficiently design and execute clinical and regulatory strategies will be instrumental in accelerating the development of our OUD drug candidate through the development process as we eventually seek a licensing or commercial partner.”
Per the terms of the collaboration, GATC will fund all research and development activities for its development assets.
Lisata will receive milestone payments and industry-standard royalties on net sales of any successfully commercialized products. GATC will earn a licensing fee for any MAT-identified assets acquired by Lisata.
Shares of Lisata jumped on the announcement, adding 8% at about $2.70 shortly after US markets opened on Tuesday.