Eli Lilly bets US$2.25B on Profluent’s AI-designed gene editing recombinases

USA—Eli Lilly has expanded its biotechnology investment strategy through a new collaboration with AI-focused biotech company Profluent, aimed at developing recombinases for large-scale gene editing applications.

The agreement strengthens Lilly’s position in next-generation genetic medicine and builds on its recent wave of biotech partnerships and acquisitions.

Under the terms of the deal, Eli Lilly will make an undisclosed upfront payment and provide funding to support Profluent’s research and development programs.

In return, Profluent could be eligible for up to USD$2.25 billion in development and commercial milestone payments if the partnership achieves predefined targets.

In addition, Profluent will receive tiered royalties on net sales should any resulting therapies reach the market.

AI-driven development of site-specific recombinases

The collaboration focuses on multiple research programmes designed to develop and commercialise site-specific recombinases for diseases characterised by severe unmet medical needs.

Recombinases are enzymes that enable precise DNA rearrangement, and in this case, the partners aim to engineer them for highly targeted genome editing.

Profluent will apply its artificial intelligence platforms to design and optimise custom recombinases capable of targeting exact genomic locations.

By leveraging AI, the company intends to improve the precision and scalability of DNA editing, particularly for complex genetic disorders where traditional approaches may fall short.

Eli Lilly will also obtain exclusive rights to advance selected recombinase candidates through early-stage research, clinical development, and eventual commercialisation.

This arrangement positions Lilly to directly translate AI-generated genetic tools into therapeutic products.

Expanding the scope of genetic editing at the kilobase level

According to Profluent, kilobase-scale DNA editing represents a major advancement in genetic medicine because it allows for the modification of larger DNA segments.

This approach could address the wide variation in mutations observed among patients with genetic disorders, offering a more adaptable treatment strategy than conventional gene-editing techniques such as knock-out or base-editing methods.

Profluent co-founder and chief executive officer Ali Madani described kilobase-scale DNA editing as a critical frontier in genetic medicine.

He emphasized that AI is essential for unlocking the potential of designer recombinases that can function across virtually any location in the genome, enabling more flexible therapeutic design.

Lilly’s expanding presence in Recombinase Technologies

This agreement is not Eli Lilly’s first investment in recombinase-based technologies.

Earlier in January 2026, the company entered into a separate collaboration valued at up to USD$1.12 billion with German biotech firm Seamless Therapeutics.

That partnership focuses on developing recombinase-based treatments for hearing loss, reflecting Lilly’s growing interest in precision genetic interventions.

In addition, Lilly has participated alongside Johnson & Johnson in a US $85 million financing round for Stylus Medicine, an in vivo gene-editing startup advancing cancer therapies.

These investments indicate a broader strategy to build capabilities across multiple gene editing platforms.

Broader deal-making strategy across therapeutic areas

Beyond gene editing, Eli Lilly has significantly accelerated its acquisition and partnership activity throughout 2026.

The company has committed approximately USD$21 billion across six biotech acquisitions targeting key therapeutic areas, including oncology, immunology, and cardiovascular disease.

Most recently, Lilly acquired Ajax Therapeutics, a specialist in Janus kinase (JAK) inhibition, in a USD $2.3 billion deal.

This acquisition is expected to strengthen the company’s presence in the blood cancer treatment space, particularly through expansion of its small-molecule drug portfolio.