Eli Lilly and Company (NYSE: LLY) entered into a licensing and drug discovery collaboration with Insilico Medicine to use artificial intelligence technology for developing therapeutics across multiple areas, according to a company statement released Sunday.

The agreement grants Lilly exclusive worldwide rights to develop, manufacture and commercialize oral therapeutics currently in preclinical development for certain indications. The partnership will combine Insilico's Pharma.AI platforms with Lilly's development capabilities for research programs focused on targets selected by Lilly.

Insilico Medicine will receive $115 million upfront, with potential additional payments through development, regulatory and commercial milestones that could total approximately $2.75 billion. The company is also eligible for tiered royalties on future sales.

The collaboration aims to accelerate discovery and development of novel therapeutics by integrating AI technology with pharmaceutical development expertise.