Isomorphic Labs, a subsidiary of Alphabet focused on drug discovery, is reportedly in early-stage negotiations for a new funding round. The company is targeting a valuation between $40 billion and $50 billion, according to recent reports.
The startup develops the IsoDDE platform, which automates the identification of binding pockets on cell surfaces. The company claims its tool is over 50% more effective at finding these pockets than competing solutions and twice as accurate at mapping protein-ligament complexes compared to the AlphaFold model.
IsoDDE also demonstrates improved performance in modeling interactions between binding pockets and antibodies, surpassing AlphaFold by 2.3 times. The platform is designed to streamline manual research processes that are critical to the development of new therapies.
The company generates revenue through research partnerships with major pharmaceutical firms. In 2024, it secured agreements with Eli Lilly and Novartis valued at nearly $3 billion, followed by a collaboration with Johnson and Johnson in January.
Isomorphic Labs previously raised $2.1 billion in March. That round included participation from Alphabet, its venture capital funds, and several external investors. Specific details regarding the current potential investors remain undisclosed.
