Pathos AI raises $237M at $3B valuation, partners with BMS on cancer drugs

AI drug discovery startup Pathos AI has closed a $237 million Series E round at a $3 billion valuation, led by pharmaceutical company Bristol Myers Squibb. The deal reflects broader trends in the biotech sector, where AI-driven approaches are attracting significant investment. Pathos’ platform, Foundry, processes 200 petabytes of oncological data to accelerate cancer drug development, as reported by SiliconANGLE.

The funding includes participation from existing investors like AstraZeneca, NEA, and General Atlantic. Beyond the capital, Bristol Myers Squibb has formed a deeper partnership with Pathos, involving Tempus AI, a medical data provider. Under the agreement, Pathos will pay Tempus $55 million over five years for access to anonymized neurological patient data. Foundry will analyze this data to support Pathos’ research, while Bristol Myers Squibb will also gain access to the dataset and AI platform for its own clinical trial optimization and patient selection efforts.

Pathos describes its approach as designed to improve efficiency in drug development. The company’s platform uses AI to evaluate large datasets, aiming to identify promising drug candidates and match them to patient subgroups more quickly than traditional methods. Pathos refers to its trials as “biomarker-driven,” leveraging biological indicators to assess drug effectiveness.

ADCs combine antibodies with therapeutic molecules to target and neutralize cancer cells. Pathos is also collaborating with AstraZeneca on an ER PROTAC drug, which aims to treat cancer by leveraging cells’ natural recycling mechanisms. These partnerships suggest interest from established pharmaceutical companies in Pathos’ technology, though the startup appears to maintain control over its pipeline.

The $3 billion valuation places Pathos among the higher-valued companies in its sector. Recent funding rounds for AI-driven biotech startups have varied widely in size, with some deals reaching significant figures. However, the success of these companies often hinges on their ability to translate early-stage research into clinically viable therapies—a challenge that has proven difficult for many in the field.

What to watch next: Pathos’ progress in advancing JSKN016 and its other programs through clinical trials will be a critical indicator of its platform’s effectiveness. The partnership with Bristol Myers Squibb could also serve as a case study for how AI startups and pharmaceutical companies collaborate, particularly in sharing data and tools. Whether Pathos can deliver on its promises will likely influence investor and industry perceptions of AI’s role in drug development.

Sources: siliconangle.com