Algen Biotechnologies announced on Monday that it has granted AstraZeneca a license to develop gene therapies discovered through its artificial intelligence-powered platform, in a deal valued at up to $555 million. Under the agreement, AstraZeneca will gain exclusive rights to develop and commercialize therapies targeting immune system-related disorders, while Algen will receive upfront and milestone payments as part of the collaboration.
The deal strengthens AstraZeneca’s growing commitment to cell and gene therapy, an area the Anglo-Swedish pharmaceutical company has been expanding through a series of acquisitions and partnerships. The agreement also aligns with AstraZeneca’s broader goal of reaching $80 billion in annual sales by 2030. Globally, major drugmakers have increasingly embraced artificial intelligence to accelerate drug discovery and development, signaling a broader industry shift toward data-driven innovation.
Earlier in March, AstraZeneca agreed to acquire Belgian biotech firm EsoBiotec for up to $1 billion, securing access to technology that modifies immune cells directly inside the body. However, the new deal with Algen does not involve AstraZeneca taking an equity stake in the company. Algen CEO and co-founder Chun-Hao Huang said the partnership combines Algen’s AI expertise with AstraZeneca’s strength in translational science and clinical development to “uncover new biological insights” and speed up the creation of advanced therapies.
Algen Biotechnologies was spun out of the University of California, Berkeley, where Nobel laureate Jennifer Doudna pioneered the CRISPR gene-editing technology. Its proprietary AI platform, AlgenBrain, uses machine learning to map genes to disease outcomes, helping identify promising therapeutic targets. The Financial Times first reported details of the agreement, which underscores how AI is transforming drug discovery and the development of next-generation treatment