Shuttle Pharmaceuticals Holdings, Inc. (Nasdaq: SHPH) announced the execution of a non-binding letter of intent to acquire Molecule.ai, an artificial intelligence company specializing in drug discovery platforms, for $10 million in a combination of cash and common shares.
The acquisition targets Molecule.ai's state-of-the-art platform designed to transform pharmaceutical and biotech drug discovery processes. Founded by AI scientist Dr. ZT Zhang, PhD, the company leverages advanced machine learning models, including large language models (LLMs), to deliver enhanced accuracy and efficiency in evaluating novel molecules.
AI-Driven Drug Discovery Capabilities
Molecule.ai's platform introduces several groundbreaking features that could significantly impact therapeutic development. The system offers molecule property prediction and reasoning capabilities, enabling rapid and large-scale evaluation of chemical and biological properties across massive compound libraries, including novel and previously uncharacterized molecules.
The platform's drug-target interaction modeling represents a powerful advancement that identifies and optimizes molecule-target interactions, potentially enabling more precise therapeutic design. Additionally, the company has developed an Agentic AI Mode, an autonomous framework that allows AI agents to perform multi-step drug discovery workflows from compound screening through optimization, significantly reducing manual effort.
"Our vision is to empower scientists with the most advanced AI-driven tools to push the boundaries of drug discovery," said Dr. ZT Zhang, Founder and CEO of Molecule.ai. "With Molecule.ai, we are not just accelerating the process — we are fundamentally changing what's possible in the search for new therapies."
Transaction Structure and Strategic Implications
Under the terms of the non-binding letter of intent, Shuttle will acquire all rights, title, and interests in Molecule.ai free and clear of all liens, while assuming all associated liabilities. The $10 million purchase price will be paid subject to completion of milestones to be determined by both parties.
The agreement includes specific development commitments from Molecule.ai, including extending the current AI model and platform to support drug-target interaction capabilities and adding the first version of Agentic AI mode for automatic drug discovery workflows. Molecule.ai will also serve as lead liaison and headhunter, leveraging relationships in the artificial intelligence community to recruit additional employees.
Expanding Beyond Radiation Therapy
The acquisition represents a significant strategic expansion for Shuttle Pharmaceuticals, which currently focuses on developing treatments to improve outcomes for cancer patients undergoing radiation therapy. The company's mission centers on maximizing the effectiveness of radiation therapy while limiting side effects through the development of radiation sensitizers.
Shuttle maintains a strong financial position with more cash than debt and a current ratio of 3.07, providing flexibility to pursue the acquisition. The company's stock currently trades at $4.79, up 0.63 percent on the NasdaqCM.
The integration of Molecule.ai's AI capabilities could enable Shuttle to accelerate its existing drug development programs while potentially expanding into new therapeutic areas. The platform's ability to shorten development timelines, reduce costs, and increase the likelihood of identifying successful therapeutic candidates aligns with industry-wide efforts to improve drug discovery efficiency.
The transaction positions Molecule.ai as a trusted partner for pharmaceutical and biotechnology organizations aiming to accelerate discovery and bring life-saving treatments to market faster, while providing Shuttle with cutting-edge AI tools to enhance its drug development capabilities.
