Approaching $6 Billion! XtalPi Secures Major Out-Licensing Agreement

On August 5, 2025, XtalPi Inc. entered into a collaboration agreement with Dovetree (a company founded by Gregory Verdine, a legendary US biotech entrepreneur and investor). Under the agreement, XtalPi will leverage its end-to-end AI drug discovery platform integrating artificial intelligence and robotics to discover and develop small molecule and antibody drug candidates against multiple targets selected by Dovetree. These targets will primarily focus on oncology, autoimmune diseases, central nervous system (CNS) disorders, and metabolic diseases.

XtalPi has already received an upfront payment of $51 million as stipulated in the definitive agreement. Subject to the terms of the agreement, XtalPi is eligible to receive a further payment of $49 million. Additionally, the company is entitled to potential milestone payments totaling up to $5.89 billion, contingent upon the achievement of specified regulatory and commercial milestones, as well as potential tiered royalties in the mid-single-digit percentage range based on the annual net sales of resulting products.

This definitive agreement follows a non-binding Letter of Intent (LOI) for a multi-billion-dollar pipeline licensing deal signed between XtalPi and Dovetree on June 23, 2025. Based on the magnitude of the upfront payment, this transaction represents the execution and formalization of the deal outlined in that LOI.