Key Highlights:
• AI-driven, patient-derived target discovery emerges as a new gold standard for reducing late-stage clinical failures
• Novartis deepens its AI-first biopharma strategy with a potential $1.7 billion multi-program alliance
• Relation’s Lab-in-the-Loop platform positions immuno-dermatology as a high-impact proving ground for AI in R&D
AI-Powered Drug Discovery Moves from Concept to Competitive Advantage
Novartis and Relation Therapeutics have entered a multi-program strategic collaboration that underscores how artificial intelligence is transitioning from experimental innovation to a core capability in big biopharma. By integrating Relation’s AI-powered, patient-derived Lab-in-the-Loop discovery engine with Novartis’s global immuno-dermatology expertise, the partnership aims to systematically identify and validate first-in-class therapeutic targets for atopic diseases, including asthma, eczema, and allergic conditions. The collaboration highlights a growing industry shift toward AI systems grounded in real human biology rather than solely preclinical models.
$1.7 Billion Bet Signals Confidence in AI-Led Target Validation
Under the agreement, Relation will receive $55 million upfront through a combination of cash, equity investment, and R&D funding, with eligibility for preclinical, development, regulatory, and commercial milestones totaling up to $1.7 billion, alongside tiered royalties. For Novartis, the structure reflects confidence that AI-driven, patient-validated targets can materially improve pipeline productivity and capital efficiency. The deal also grants Novartis global development and commercialization rights, reinforcing its intent to scale AI-enabled discoveries into worldwide therapeutic franchises.
Patient-Derived Multi-Omics Aim to De-Risk Clinical Development
At the core of the collaboration is Relation’s ability to generate high-resolution functional cell atlases directly from patient tissue. By combining multi-omic datasets with proprietary experimental systems and machine learning models, the platform is designed to uncover causal disease mechanisms and validate targets before entering the clinic. This approach directly addresses one of biopharma’s most persistent challenges: high clinical attrition driven by weak target biology. The alliance positions AI not just as a speed tool, but as a precision engine for smarter clinical decision-making.
Rising Investor Momentum Validates the AI-Biopharma Model
The Novartis collaboration follows a $26 million investment into Relation from NVentures, DCVC, and Magnetic Ventures, further validating market confidence in AI-native drug discovery platforms. As leading pharmaceutical companies in the US and Europe increasingly seek differentiated AI partners, this deal reflects a broader industry inflection point where computation, experimentation, and patient data converge to reshape R&D economics. For the global healthcare AI ecosystem, the partnership sets a benchmark for how strategic collaborations can translate advanced algorithms into real-world therapeutic impact.
About Novartis
Novartis is a global, innovation-driven biopharmaceutical company headquartered in Basel, Switzerland, focused on reimagining medicine to improve and extend people’s lives. The company is deeply integrating artificial intelligence, data science, and advanced digital platforms across drug discovery, clinical development, and commercialization, with a strategic focus on immunology, oncology, neuroscience, and cardiovascular diseases to deliver transformative therapies at scale.
About Relation Therapeutics
Relation Therapeutics is a UK-based biotechnology company pioneering AI-powered, patient-derived drug discovery to reveal the true biology of disease. Through its proprietary Lab-in-the-Loop platform, the company combines machine learning, functional genomics, and high-resolution multi-omic data generated directly from human tissue to identify and validate high-confidence therapeutic targets, aiming to significantly reduce clinical failure rates and accelerate the next generation of medicines.
Source: Relation Announces Strategic Collaboration with Novartis to Advance Therapeutics for Atopic Diseases Relation Therapeutics December 9, 2025 https://www.globenewswire.com/news-release/2025/12/09/3202076/0/en/Relation-announces-strategic-collaboration-with-Novartis-to-advance-therapeutics-for-atopic-diseases.html
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