AbbVie taps Iambic AI models for drug discovery in multi-year deal

The AbbVie-Iambic collaboration comes amid a broader trend of pharmaceutical companies turning to AI to speed up drug discovery, particularly for small molecules. The deal spans three therapeutic areas where AbbVie has significant presence, suggesting the company sees AI as a way to bolster its pipeline in immunology, neuroscience, and oncology. The financial structure—upfront payment plus milestones and royalties—is typical for early-stage partnerships, aligning incentives around successful outcomes.

Separately, Telix Pharmaceuticals' up-to-$2.35-billion acquisition of ITM Isotope Technologies shows consolidation in radiopharmaceuticals. The deal includes $1.65 billion upfront and up to $700 million tied to FDA approvals and sales milestones for ITM-11, which has completed two Phase III trials. This suggests that companies are willing to pay hefty sums for late-stage radiopharma assets with clear regulatory pathways.

In diabetes and obesity, Novo's CagriSema outperformed Eli Lilly's tirzepatide on weight loss in a late-stage trial, but the victory may be less decisive than it appears. BMO analyst Evan Seigerman called the results 'less impactful' because tirzepatide has already beaten higher doses of CagriSema in obesity trials. The outcome of CagriSema's regulatory review, with an FDA decision expected in Q4 2026 and a launch targeted for early 2027, will determine whether it can gain meaningful share in the competitive obesity market. For now, the mixed reception suggests that Novo may need more convincing data to challenge Lilly's dominance.