Bayer and Iambic Collaborate to Advance Drug Discovery with AI

Key Terms

small molecule medical

A small molecule is a low-weight chemical compound that can enter cells easily and interact with specific proteins or biological pathways to change how they work, much like a small key fitting into a lock. Investors care because small molecules are a common and often faster route to develop medicines, can be manufactured at scale, and may offer clearer regulatory and commercial paths compared with larger biologic therapies, affecting potential costs, timelines and returns.

ai-driven drug discovery technical

AI-driven drug discovery uses advanced computer programs to spot promising drug targets and molecules by analyzing large sets of biological and chemical data, accelerating steps that used to take many years of lab work. Investors care because it can cut research costs, shorten development timelines and raise the odds of finding viable medicines—think of it as using a smart metal detector to find valuable items more efficiently than digging at random—while still carrying scientific and regulatory risk.

molecular optimization medical

Molecular optimization is the laboratory process of tweaking a drug candidate’s chemical structure to improve how well it works, how safe it is, and how easily it can be made and delivered in the body. Think of it as tuning a prototype car engine—scientists adjust parts to get better performance, fuel efficiency and reliability. For investors, successful optimization raises the odds a drug will clear tests, reach the market faster, and cost less to manufacture, directly affecting value.

clinical trials medical

Clinical trials are carefully controlled studies that test whether a new drug, device or treatment is safe and effective in people, moving through successive stages that increase the number of participants and the rigor of testing. Investors care because trial outcomes determine whether a product can be approved and sold, shaping a company’s future revenue, valuation and risk profile—think of it as proof-of-concept testing that decides if a prototype becomes a market-ready product.

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• Collaboration focuses on small molecule discovery
• Bayer to leverage Iambic’s AI platform to address hard-to-drug targets
• Collaboration will strengthen Bayer’s research and development portfolio by harnessing AI to accelerate drug discovery

BERLIN & SAN DIEGO--(BUSINESS WIRE)-- Bayer and Iambic Therapeutics Inc., a clinical-stage life science and technology company developing novel medicines using its AI-driven platform, today announced a drug discovery collaboration in which Bayer will discover new medicines using Iambic’s AI-driven platform. The collaboration is focused on small molecule discovery.

The collaboration will leverage Iambic’s AI-driven drug discovery platform, including its flagship AI technologies, Enchant & NeuralPLexer, to identify novel drug entry points and differentiated molecules to address otherwise hard-to-drug targets that will enhance Bayer’s early portfolio.

“This collaboration exemplifies our shared ambition to harness AI as a strategic driver of innovation in drug discovery and our focus on building high-impact collaborations that translate cutting-edge technology into patient value.” said Juergen Eckhardt, M.D., Head of Business Development and Licensing at Bayer Pharmaceuticals. “By collaborating with Iambic, we bring together complementary capabilities to accelerate scientific insights and improve decision-making across the R&D value chain.”

Traditional drug discovery takes 10-15 years and costs around USD 2.6 billion, yet more than 90 percent of candidates fail in clinical trials.^1,2,3 By using AI-based molecular optimization, the collaboration aims to identify differentiated hit molecules, accelerate optimization timelines, and strengthen Bayer's pipeline ahead of the next decade.

“Iambic is proving that better technology leads to better medicines, both in our own hands and with visionary partners like Bayer,” said Tom Miller, PhD, Co-Founder and CEO, Iambic. “Through this collaboration, Bayer secures access to industry-leading technology, including Iambic’s frontier AI models Enchant and NeuralPLexer, and together we expand the universe of potential life-saving medicines.”

Under terms of the agreement, Iambic will receive an upfront payment as well as milestone and royalty payments.

About Iambic

Iambic is proving that better technology leads to better medicines. By pioneering molecular superintelligence — integrating proprietary AI with automated, high-throughput experimentation — we are transforming how medicines are made. Our platform was validated by the discovery of a novel drug candidate advanced to clinic in about one-third industry-standard time, along with a diverse preclinical pipeline. Our leading AI technologies include Enchant and NeuralPLexer for multimodal endpoint prediction designed to improve the speed, precision, and success rates of drug discovery and clinical development. At Iambic, we are building the engine that will power the future of medicine. | iambic.ai

About Bayer

Bayer is a global enterprise with core competencies in the life science fields of health care and nutrition. In line with its mission, “Health for all, Hunger for none,” the company’s products and services are designed to help people and the planet thrive by supporting efforts to master the major challenges presented by a growing and aging global population. Bayer is committed to driving sustainable development and generating a positive impact with its businesses. At the same time, the Group aims to increase its earning power and create value through innovation and growth. The Bayer brand stands for trust, reliability and quality throughout the world. In fiscal 2025, the Group employed around 88,000 people and had sales of 45.6 billion euros. R&D expenses amounted to 5.8 billion euros. For more information, go to www.bayer.com.

Find more information at https://pharma.bayer.com/
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Forward-Looking Statements

This release may contain forward-looking statements based on current assumptions and forecasts made by Bayer management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Bayer’s public reports which are available on the Bayer website at www.bayer.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

Bayer AG is a holding company with operating subsidiaries worldwide. References to “Bayer” or “the company” herein may refer to one or more subsidiaries as context requires.

1.		FTLOScience. The process and costs of drug development. Available at: https://ftloscience.com/process-costs-drug-development.
2.		Mullard, A. Nat Rev Drug Discov. 2014. https://doi.org/10.1038/nrd4507.
3.		Sun, D et al. Acta Pharmaceutica Sinica B. 2022. https://doi.org/10.1016/j.apsb.2022.02.002

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260621558588/en/

Bayer Global Media:
Lisa Varrelmann, phone: +49 1746466492
Email: lisa.varrelmann@bayer.com

Bayer U.S. Media:
Elaine Colón
Email: elaine.colon@bayer.com

Iambic Media:
Amanda Guisbond
Email: media@iambic.ai

Source: Bayer