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Eric Ng

Shares of Shenzhen-based AI-powered drug researcher XTalPi jumped as much as 23 per cent after it signed a US$6 billion deal with a firm founded by a Harvard University chemist with a reputation as a serial biotech entrepreneur.
DoveTree, established by professor Gregory Verdine, signed a definitive collaboration agreement in late June with XTalPi, the Chinese company said in a filing with Hong Kong’s bourse on Tuesday. Harvard describes Verdine as a “pioneer in chemical biology and a distinguished serial entrepreneur”.
DoveTree agreed to pay XTalPi US$100 million within 180 days of the signing for the exclusive worldwide rights to develop and commercialise drug candidates discovered by XTalPi, of which US$51 million has been paid.
“[XTalPi] will use its end-to-end AI drug discovery platform through integrated ‘AI + robotics’ technology to discover and develop small-molecule and antibody-based drug candidates for multiple targets selected by DoveTree, primarily in the fields of oncology, immunologic and inflammatory diseases, neurological disorders and metabolic dysregulation,” XTalPi said.
The company will be entitled to payments of up to US$5.89 billion if the candidates meet regulatory and commercial milestones, in addition to royalties based on a single-digit percentage of annual net sales.
XTalPi’s shares gained 12.4 per cent to HK$7.42 on Wednesday.
The company’s self-developed large language model (LLM) has helped increase the success rate of chemical experiments to 90 per cent from 20 to 30 per cent, Zhang Peiyu, chief scientific officer of the firm, said in January. LLMs underpin generative artificial-intelligence services like ChatGPT.
The integration of robotics and AI will reduce drug discovery timelines to just one or two years from four, Zhang told the Post’s China Conference: Greater Bay Area 2025 in Guangzhou.
Verdine is renowned for spelling out the molecular mechanism of epigenetic DNA methylation. Aberrant DNA methylation patterns have been linked to various diseases, including cancer.

He founded or co-founded more than 10 biotechnology companies, including five publicly listed entities, and three therapeutics he spearheaded have received marketing approval from the US Food and Drug Administration, according to XTalPi.
XTalPi’s deal with DoveTree adds to a growing list of drug-licensing collaborations between Chinese research firms and international pharmaceutical companies.
China’s pharmaceutical out-licensing value soared to almost US$66 billion in the first six months of 2025, more than the whole of last year, according to a July 14 report from China Post Securities.
For multinational companies, the deals provide exclusive products to expand their drug-candidate pipelines, while the Chinese developers can cash in on prior work and fund new projects.
Late last month, UK-based GlaxoSmithKline said it would potentially pay Jiangsu Hengrui Pharmaceuticals US$12.5 billion for exclusive global rights to develop and market a dozen drugs under what was the largest licensing deal ever for Chinese drug developers.
AI-assisted efforts have gained momentum in China’s healthcare industry over the past five years, aided by technical advancements, policy incentives and capital investment, Jefferies’ analysts said in a report in June.
XTalpi counted US-based Merck, Johnson & Johnson, Pfizer and Eli Lilly as collaboration partners, they said.


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Deal with DoveTree, established by Harvard professor Gregory Verdine, adds to growing list of licensing tie-ups with Chinese firms


Deal with DoveTree, established by Harvard professor Gregory Verdine, adds to growing list of licensing tie-ups with Chinese firms.


China’s AI-powered drug firm XTalPi surges on US$6 billion deal with Harvard entrepreneur

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Deal with DoveTree, established by Harvard professor Gregory Verdine, adds to growing list of licensing tie-ups with Chinese firms

Deal with DoveTree, established by Harvard professor Gregory Verdine, adds to growing list of licensing tie-ups with Chinese firms