Chicago’s Pathos AI Raises $62M to Advance AI-Driven Drug Development

Chicago's Pathos AI Raises $62M to Advance AI-Driven Drug Development

by John Conrad| Oct 30, 2024| Member News, NewsBrief

Pathos AI, a Chicago-based biotech startup, has secured $62 million in Series C funding to advance its AI-driven approach to drug development, according to a Tuesday press release. The funding news, also covered by Katherine Davis of Crain's Chicago Business and Kyle LaHucik of EndPoints News, revealed that the round was led by New Enterprise Associates with participation from Revolution Growth, valuing the company at $600 million and bringing its total funding to $102 million.

Unlike traditional AI drug discovery companies, Pathos AI focuses on identifying existing Phase 1 cancer drugs that could succeed with more targeted patient populations. The company uses artificial intelligence to determine which patients are most likely to respond to specific treatments.

"By leveraging AI to understand why some patients respond and others do not, we believe we can materially increase the probability of successful trials," said Ryan Fukushima, Interim CEO of Pathos AI, who also serves as chief operating officer of Tempus.

The three-year-old company, founded by Tempus executives including CEO Eric Lefkofsky, has already acquired three clinical-stage drugs through deals with Prelude Therapeutics, Rain Oncology, and Novo Nordisk. Pathos AI plans to launch new clinical trials for these medicines in 2025.

The funding will support the expansion of the company's scientific team and further development of its PathOS™ Platform, which uses AI to improve patient selection strategies and clinical trial design.