Isomorphic Labs enters reported funding talks at a $40 billion-plus valuation

Isomorphic Labs, the Alphabet-backed company using AI to design potential medicines for pharmaceutical partners and its own pipeline, is in early talks to raise new funding at a valuation of at least $40 billion, Bloomberg Law reported. The round could value the business as high as $50 billion, but it hasn't closed and the terms could change. The proposed investment amount wasn't disclosed.

Its IsoDDE system reaches beyond predicting a protein’s shape. The platform combines multiple AI models with curated life-science data to model molecular structures and interactions, then runs large volumes of computer-based experiments on GPU infrastructure. Scientists use the results to narrow chemical possibilities and design drug candidates across small molecules, biologics and other formats.

That shifts part of candidate identification from the laboratory bench to software, where teams can examine more options before committing to physical experiments. The output is still an experimental drug prospect, not a finished medicine. Isomorphic is using the engine in joint research with established drugmakers and in wholly owned programs that it wants to advance toward clinical testing.

Novartis’ initial collaboration with Isomorphic covered small-molecule therapies against three difficult targets, then expanded by as many as three additional programs. Eli Lilly’s partnership also covers small molecules against undisclosed targets. Johnson & Johnson is working with Isomorphic across multiple targets and drug types, including small molecules and biologics. The company says its internal pipeline focuses on cancer and immune disorders.

The valuation talks arrive less than five months after Isomorphic closed a $2.1 billion Series B led by Thrive Capital. The company said that capital would expand IsoDDE, advance therapeutic programs, support hiring and scale the business globally. It did not disclose a valuation for that round, so the new report offers a fresh market marker but no clean measure of how far the company’s price has moved.