Shuttle to Enter $3.24 Billion AI Pharmaceutical Market

Rhea-AI Summary

Shuttle Pharmaceuticals (Nasdaq: SHPH) announced a non-binding letter of intent dated Oct 9, 2025 to acquire AI developer Molecule.ai for a $10 million purchase price payable at closing subject to milestones.

Molecule.ai provides an AI drug-discovery platform using LLMs with modules for molecule property prediction, drug-target interaction modeling, and an initial Agentic AI mode to automate multi-step discovery workflows. Shuttle will acquire all rights and assume liabilities; Molecule.ai will extend the platform and assist hiring. Consideration will be a mix of cash and Shuttle common shares tied to milestone completion.

Positive

• Purchase price of $10 million for Molecule.ai
• Platform adds Drug-Target Interaction modeling capability
• Agentic AI mode introduced to automate discovery workflows
• Molecule.ai to serve as lead liaison for AI talent recruitment

Negative

• Agreement is a non-binding letter of intent, not a final sale
• Shuttle will assume all liabilities of Molecule.ai at closing
• Consideration includes common shares, implying potential dilution

Insights

M&A Strategist

Non-binding LOI to acquire an AI platform for $10 million is a strategic but early-stage deal with conditional value.

The transaction is structured as a purchase via a non-binding letter of intent where Shuttle Pharmaceuticals will acquire all rights and assume liabilities of Molecule.ai in exchange for a $10 million purchase price payable in cash and common shares subject to milestones. The deal aims to add AI capabilities centered on property prediction, drug-target interaction modeling and an initial agentic AI workflow to Shuttle’s discovery toolset.

Key dependencies and risks include the non-binding nature of the LOI, milestone-based consideration, and the assumption of Molecule.ai liabilities; these facts limit immediate certainty about value transfer and timing. Watch for a signed definitive agreement, the specific milestone schedule, and integration plans within the next several quarters to assess realized impact.

AI-Enabled Drug Discovery Expert

Acquiring an LLM-driven discovery platform could expand capabilities, but announced features and milestones leave near-term impact unclear.

The platform claims rapid molecule property prediction, drug-target interaction modeling, and an early agentic AI mode; these functions, if delivered, can shorten screening workflows by automating multi-step tasks. The statement limits itself to planned extensions and a first version of agentic capabilities rather than delivered, validated outputs.

From a technical view, monitor three concrete items: delivery and validation of the Drug-Target Interaction extension, performance benchmarks for the agentic workflow, and the milestone schedule tied to the $10 million payout. Expect clarity or measurable validation within 2026 timeframes after definitive agreements and pilot results are disclosed.

GAITHERSBURG, Md., Oct. 09, 2025 (GLOBE NEWSWIRE) -- Shuttle Pharmaceuticals Holdings, Inc. (Nasdaq: SHPH) (“Shuttle Pharma” or the “Company”), a discovery and development stage specialty pharmaceutical company, today announced the execution of a non-binding letter of Intent with Molecule.ai.

Molecule.ai, a pioneering artificial intelligence company founded by AI scientist and researcher Dr. ZT Zhang, PhD, today announced the execution of a letter of Intent to acquire Molecule.ai and its state-of-the-art platform designed to transform the way pharmaceutical and biotech companies discover and develop new therapeutics.

By leveraging advanced machine learning models, including large language models (LLMs), Molecule.ai delivers industry-leading accuracy and efficiency in evaluating novel molecules. The platform enables researchers to shorten development timelines, reduce costs, and increase the likelihood of identifying successful therapeutic candidates.

“Our vision is to empower scientists with the most advanced AI-driven tools to push the boundaries of drug discovery,” said Dr. ZT Zhang, Founder and CEO of Molecule.ai. “With Molecule.ai, we are not just accelerating the process — we are fundamentally changing what’s possible in the search for new therapies.”

The Molecule.ai platform introduces several groundbreaking capabilities:

1. Molecule Property Prediction and Reasoning – Rapid and large-scale evaluation of chemical and biological properties across massive compound libraries, including novel and previously uncharacterized molecules.
2. Drug-Target Interaction Modeling – A powerful new feature that identifies and optimizes molecule-target interactions, paving the way for more precise therapeutic design.
3. Agentic AI Mode – An autonomous framework that enables AI agents to perform multi-step drug discovery workflows, from compound screening through optimization, significantly reducing manual effort.
   

With these innovations, Molecule.ai positions itself as a trusted partner for pharmaceutical and biotechnology organizations aiming to accelerate discovery and bring life-saving treatments to market faster.

Terms of the non-binding letter of Intent are as follows:

Shuttle will acquire all of the rights, title and interests Molecule.ai has free and clear of all liens.

Shuttle will assume all liabilities in respect of Molecule.ai and at Closing (as defined below), Molecule.ai shall have no further obligations or liabilities thereunder.

Molecule.ai will extend the current AI model and platform to support Drug-Target Interaction.

Molecule.ai will add first version of Agentic AI mode that enables an automatic workflow for drug discovery.

Molecule.ai will serve as lead liaison and headhunter, leveraging its relationships in the artificial intelligence community to recruit additional employees and strengthen the team.

Consideration:

As consideration for the purchase and the Transaction, and Shuttle’s assumption of its obligations and liabilities, Shuttle shall pay to Molecule.ai, at closing, a purchase price of $10 million payable, subject to the completion of the milestones, in a combination of cash and common shares of Shuttle. Consideration will be paid to Molecule.ai based upon certain milestones to be determined by both parties.

About Molecule.ai

Molecule.ai is an advanced artificial intelligence company focused on revolutionizing drug discovery and development. Founded by Dr. ZT Zhang, PhD, the company applies cutting-edge machine learning models and large language models (LLMs) to molecular evaluation, drug-target interaction modeling, and autonomous drug discovery workflows. Molecule.ai’s mission is to empower researchers with next-generation tools that reduce costs, improve efficiency, and unlock new possibilities in therapeutic development.

About Shuttle Pharmaceuticals

Shuttle Pharma is a discovery and development stage specialty pharmaceutical company focused on improving the outcomes for cancer patients treated with radiation therapy (RT). Our mission is to improve the lives of cancer patients by developing therapies that are designed to maximize the effectiveness of RT while limiting the side effects of radiation in cancer treatment. Although RT is a proven modality for treating cancers, by developing radiation sensitizers, we aim to increase cancer cure rates, prolong patient survival and improve quality of life when used as a primary treatment or in combination with surgery, chemotherapy and immunotherapy. For more information, please visit our website at www.shuttlepharma.com.

Safe Harbor Statement

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements.” These statements include, but are not limited to, statements concerning the development of our company. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including factors discussed in the “Risk Factors” section of Shuttle Pharma’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 26, 2025, as well other SEC filings. Any forward-looking statements contained in this press release speak only as of the date hereof and, except as required by federal securities laws, Shuttle Pharmaceuticals specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Shuttle Pharmaceuticals
Chris Cooper
Chief Executive Officer
info@shuttlepharma.com

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Headline Reference - Artificial Intelligence In Pharmaceutical Industry Research Report 2025-2033: Merging AI Technologies to Revolutionize Drug Discovery, Improve Patient Outcomes, and Drive Operations Efficiency

FAQ

What did Shuttle Pharmaceuticals (SHPH) announce on Oct 9, 2025 about Molecule.ai?

Shuttle announced a non-binding LOI to acquire Molecule.ai with a $10 million purchase price payable at closing subject to milestones.

How will the Molecule.ai platform change Shuttle's drug discovery capabilities (SHPH)?

Molecule.ai adds molecule property prediction, drug-target interaction modeling and an initial Agentic AI mode to automate multi-step workflows.

Will the SHPH acquisition of Molecule.ai immediately close after the LOI?

No. The announcement is a non-binding letter of intent; closing depends on agreed milestones and definitive agreements.

What is the financial consideration for the proposed SHPH purchase of Molecule.ai?

The proposed consideration is $10 million payable at closing in a combination of cash and Shuttle common shares, subject to milestones.

Does Shuttle (SHPH) assume any risks from the Molecule.ai deal?

Yes. Shuttle will assume all liabilities

How will the deal affect SHPH shareholder dilution and hiring?

Consideration includes common shares, so the transaction could cause share dilution, and Molecule.ai will help recruit AI talent for Shuttle.