Formation Bio raises $600 million fund to expand AI-driven drug licensing and testing model

Formation Bio, an AI-focused biotech that builds value by acquiring external drug assets, developing them and then transferring them to partners, announced a new financing round.

The company secured $600 million of capital, which it says will be used to license additional candidates and expand its testing capabilities under the same acquisition-development-hand-off model.

The funding is intended to double down on the strategy that has defined Formation Bio’s growth, allowing it to pursue more projects and potentially accelerate timelines for bringing assets to market.