Lisata Therapeutics Inc (NASDAQ:LSTA) CEO Dr David Mazzo talked with Proactive about the company's deepening collaboration with GATC Health.
Mazzo explained that the partnership has evolved due to the complementary strengths of both organisations—Lisata's clinical and regulatory expertise and GATC's AI-powered drug discovery platform, MAT.
GATC Health Chief business officer Tyrone Lam explained how their MAT platform offers predictive insights into drug performance.
Proactive: Hello. You're watching Proactive. I'm joined by Lisata Therapeutics CEO Dr. David Mazzo, as well as GATC Health Chief Business Officer Tyrone Lam. David, it's good to speak with you. I want to start with you. What convinced Lisata to extend this partnership and lead development of GATC’s opioid use disorder candidates into Phase 1 trials?
David Mazzo (DM): Thanks. It's always a pleasure to be here. Our relationship with GATC has been growing quickly, which reflects how well we work together. We've expanded the partnership because we see a real symbiotic relationship. On one side, we bring experience in clinical and regulatory product development. On the other, GATC brings expertise in bioinformatics and AI, which can transform the drug development process to be more cost-effective and efficient.
We've selected the opioid abuse product as our first joint development because it addresses a major unmet medical need and a significant social issue in the United States. We believe we can provide benefit on multiple fronts.
David, how does combining AI discovery with Lisata’s regulatory and clinical expertise give you a competitive edge?
DM: Traditionally, drug development requires testing thousands of compounds to get one successful product to market. Even with today's tools, it's still trial and error. With GATC's MAT platform, we use AI to bypass much of that inefficiency. The platform helps identify potential failures early and focus on better candidates. It allows us to predict development challenges and prioritise promising molecules, changing the paradigm significantly.
Ty, your MAT platform showed impressive predictive accuracy. Can you give examples of how it de-risks drug candidates compared to conventional methods?
Tyrone Lam (TL): Great question. Our platform provides insights into how a drug will perform in a clinical trial before it enters one. It's a forecasting tool that mimics human physiology across diseases. It allows scientific and business teams to make informed decisions early, reducing risk and resource waste. It’s like a fast-fail mechanism that saves time and capital.
David touched on this, but why did you choose opioid use disorder as your first target, and what makes your candidate unique?
TL: OUD is a challenging therapeutic area. We had access to high-quality addiction data that others couldn't interpret. Our platform found a novel set of targets linked to OUD. We then validated them and identified compounds that affect all three targets in the brain. The result is a non-opioid treatment that, based on preclinical results, shows promise. We aim to begin human trials early next year.
Looking ahead, how do you see AI-driven platforms like MAT transforming drug development timelines and economics?
TL: Working with Lisata, which is agile and forward-thinking, accelerates innovation. AI will soon be a must-have for biotech. In today’s capital-restrictive environment, every dollar counts. Our platform provides quick, third-party, objective insights that help companies make smarter, faster decisions. That’s essential for success now.
David, investors will want to know—what’s the revenue and royalty potential if the OUD drug is successful?
DM: OUD represents a large unmet need, translating to a big market. A fresh market study would likely show a multibillion-dollar opportunity in North America alone. Our agreement allows both companies to share asset ownership pro-rata. If the product succeeds, we could either bring it to market ourselves or license it to a large pharma company. Such deals often involve tens of millions of dollars in upfront and milestone payments, plus double-digit royalties on sales.
Ty, do you expect more partnerships like this between AI and pharmaceutical companies?
TL: Yes, absolutely. GATC is a tech company, and Lisata is a fast-moving biotech. This collaboration bridges AI discovery and clinical development. We believe it sets a model for future partnerships. Many AI firms go straight to big pharma, but we see more value in partnering early with innovative biotechs to build and prove the model.
Quotes have been lightly edited for clarity and style