Generate: Biomedicines has entered a new partnership with Novartis to develop advanced protein therapies. Novartis is committing $65 million upfront, including $50 million in cash and $15 million in equity, with future milestone payments potentially exceeding $1 billion.

The partnership mirrors similar deals, including Generate’s ongoing work with Amgen, focusing on protein-based therapeutics such as antibodies, enzymes, and cytokines. AI-driven biotech firms are increasingly sought after by large pharmaceutical companies, with Novartis also striking deals with other AI-focused players like Alphabet’s Isomorphic Labs.

Led by CEO Mike Nally since 2021, Generate has rapidly expanded, raising over $600 million and pushing nearly 20 drug programs forward. The Novartis collaboration will enable Generate to further leverage its AI-based molecular design technologies, potentially filing up to six new drug applications within 18 months.

Generate’s financial position is strong, with over $350 million in cash reserves. CEO Nally stated that while an IPO could be an option, the company is well-positioned to continue without needing to go public, backed by its solid group of investors.