Artificial intelligence has drawn billions of dollars in global investment as pharmaceutical giants race to accelerate new drug development, yet the AI drug discovery sector is still defining its viable commercial models. In China’s vibrant biotech ecosystem, two industry heavyweights with deep roots in the country are now offering different answers.
Recent financial results from XtalPi Holdings Ltd and InSilico Medicine Cayman TopCo show the sector diverging into two distinct business models — one built on selling AI-powered research services, the other on using algorithms to create entirely new biotech pipelines.
The difference is already visible in their financial performance, as the two companies navigate the capital markets, with XtalPi being among the first specialized tech firms to list under Hong Kong’s new Chapter 18C rules and InSilico delivering Hong Kong’s largest biotech listing of 2025 by funds raised.
XtalPi reported revenue of 802.6 million yuan ($111 million) in 2025, representing a 201.2 percent year-on-year increase, and posted its first full-year net profit of 134.6 million yuan, with adjusted net profit reaching 258.2 million yuan. The figure makes it the first profitable AI for Science company listed on the Hong Kong H-share market.
InSilico, by contrast, generated $56.2 million in revenue, but reported an adjusted net loss of $43.8 million, which the company said “was primarily attributable to the decline in revenue and partially offset by the decrease in research and development expenses”.
The contrast highlights a broader debate across the global artificial intelligence drug discovery sector: whether AI should be commercialized primarily as a research platform or as the foundation for building biotech companies.
XtalPi has positioned itself as a technology platform for pharmaceutical companies. Its core business combines AI-driven molecular simulation with automated laboratories and robotics systems designed to accelerate early-stage drug discovery.
