XtalPi
{{Short description|Chinese biotechnology company}}
{{Use dmy dates|date=February 2025}}
{{Infobox company
| name = XtalPi Holdings Limited
| trading_name =
| native_name = 晶泰控股有限公司
| logo = XtalPi.png
| image =
| image_caption =
| former_name = QuantumPharm
| type = Public
| traded_as = {{HKEX|2228}}
| foundation = {{start date and age|2015}}
| industry = {{UBL|Biotechnology|Material science|Artificial intelligence}}
| location = Shenzhen, Guangdong, China
| founders = {{UBL|Wen Shuhao|Ma Jian|Lai Lipeng}}
| key_people = {{UBL|Wen Shuhao (Chairman)|Ma Jian (CEO)}}
| products =
| revenue = {{Increase}} {{CNY|link=yes|174.42 million}} (2023)
| net_income = {{Decrease}} {{CNY|link=yes|-1.91 billion}} (2023)
| assets = {{Decrease}} {{CNY|link=yes|4.01 billion}} (2023)
| equity = {{Decrease}} {{CNY|link=yes|-7.42 billion}} (2023)
| num_employees = 783 (2023)
| homepage = {{Official URL}}
}}
XtalPi Holdings Limited (XtalPi; {{Lang-zh|c=|p=Jīngtài Kējì|s=晶泰科技}}) is a publicly listed Chinese biotechnology company that engages in research and development for early-stage drug discovery and material science through methods backed by artificial intelligence (AI).
History
In 2015, XtalPi was founded in China by Wen Shuhao, Ma Jian and Lai Lipeng. The three co-founders are quantum physicists who previously worked as postdoctoral researchers at the Massachusetts Institute of Technology. The companies applied quantum algorithms to drug development. At the time it was one of the very few AI drug discovery companies in Asia which quickly drew investor interest. XtalPi claimed to be the world's most well-funded startup in the space with its investors including Tencent, 5Y Capital, Google, Susquehanna International Group, Sino Biopharmaceutical and SoftBank Vision Fund.{{Cite web |last=Lee |first=Zinnia |date=25 January 2025 |title=This Chinese MIT Physicist Uses AI To Find New Drugs. Next Up: Solar Panels And EV Batteries |url=https://www.forbes.com/sites/zinnialee/2025/01/28/this-chinese-mit-physicist-uses-ai-to-find-new-drugs-next-up-solar-panels-and-ev-batteries/ |access-date=20 February 2025 |website=Forbes |language=en |archive-date=4 February 2025 |archive-url=https://web.archive.org/web/20250204215052/https://www.forbes.com/sites/zinnialee/2025/01/28/this-chinese-mit-physicist-uses-ai-to-find-new-drugs-next-up-solar-panels-and-ev-batteries/ |url-status=live }}{{Cite news |last=Rosenbush |first=Steven |date=16 March 2020 |title=In Race to Treat Coronavirus, AI Is Seen as Key |url=https://www.wsj.com/articles/in-race-to-treat-coronavirus-ai-is-seen-as-key-11584351000 |access-date=20 February 2025 |work=Wall Street Journal |language=en-US |issn=0099-9660 |archive-date=20 February 2025 |archive-url=https://web.archive.org/web/20250220093206/https://www.wsj.com/articles/in-race-to-treat-coronavirus-ai-is-seen-as-key-11584351000 |url-status=live }}
In 2022, after working with pharmaceutical companies like Eli Lilly, Johnson & Johnson and Merck & Co., XtalPi looked towards expanding into material science where it could apply its services. Most notably solar panels and electric vehicle batteries.{{Cite web |last=Ouyang |first=Iris |date=24 January 2023 |title=Exclusive {{!}} Chinese pharma firm uses AI to find new industrial materials |url=https://www.scmp.com/business/china-business/article/3207587/xtalpi-rides-ai-expand-materials-science-tencent-backed-pharma-firm-plans-expansion-shanghai-hong |access-date=20 February 2025 |website=South China Morning Post |language=en |archive-date=20 February 2025 |archive-url=https://web.archive.org/web/20250220094022/https://www.scmp.com/business/china-business/article/3207587/xtalpi-rides-ai-expand-materials-science-tencent-backed-pharma-firm-plans-expansion-shanghai-hong |url-status=live }}
In June 2024, XtalPi helds its initial public offering and became a listed company on the Hong Kong Stock Exchange.The offering raised HK$989.3 million ($126.7 million) and on the first day of trading, the shares rose 9.8%. XtalPi was the first company to go public under the 18C rule for specialist technology companies with smaller market cap and lower revenue.{{Cite web |last=Lee |first=Zinnia |date=13 June 2024 |title=Tencent-Backed AI Drug Discovery Startup Xtalpi Rises In Hong Kong Debut |url=https://www.forbes.com/sites/zinnialee/2024/06/13/tencent-backed-ai-drug-discovery-startup-xtalpi-rises-in-hong-kong-debut/ |access-date=20 February 2025 |website=Forbes |language=en}}
In February 2025, XtalPi announced it will raise HK$2.08 billion ($267 million) through a share placement. It also stated that one of its subsidiaries will work with Hengjian Holding to gear up the company's "AI+ Technology and Industry Integration Innovation Consortium Project" in the Greater Bay Area.{{Cite web |last=Yu |first=Teri |date=20 February 2025 |title=NEWS WRAP: Surging Xtalpi seizes on tech rally to raise $267 million |url=https://thebambooworks.com/surging-xtalpi-seizes-on-tech-rally-to-raise-267-million/ |access-date=20 February 2025 |website=Bamboo Works |language=en-GB |archive-date=20 February 2025 |archive-url=https://web.archive.org/web/20250220083804/https://thebambooworks.com/surging-xtalpi-seizes-on-tech-rally-to-raise-267-million/ |url-status=live }}
In April 2025 during President Xi Jinping's visit to Shanghai, XtalPi held a meeting with him to present its commitment to “scientific and technological self-reliance.{{Cite web |last=Feng |first=Coco |date=2025-04-30 |title=Chinese AI and robotics start-ups respond to Xi’s self-reliance call |url=https://www.scmp.com/tech/policy/article/3308523/chinese-ai-and-robotics-start-ups-agibot-xtalpi-respond-xis-self-reliance-call |access-date=2025-05-29 |website=South China Morning Post |language=en}}
Business operations
= Drugs =
XtalPi uses quantum algorithms to calculate molecular structures and the resulting datasets are used for machine learning to train its own self developed AI large language models. The AI models then screen through billions of molecules and generates ones that could potentially be made into new drugs. The selected ones are later tested in XtalPi's robotic labs in China and the US.{{Cite web |date=19 January 2025 |title=AI-driven drug discovery aided by Greater Bay Area integration, firm says |url=https://www.scmp.com/tech/tech-trends/article/3295312/ai-driven-drug-discovery-aided-greater-bay-area-integration-hong-kong-listed-firm-says |access-date=20 February 2025 |website=South China Morning Post |language=en |archive-date=20 February 2025 |archive-url=https://web.archive.org/web/20250220093727/https://www.scmp.com/tech/tech-trends/article/3295312/ai-driven-drug-discovery-aided-greater-bay-area-integration-hong-kong-listed-firm-says |url-status=live }}
XtalPi doesn't develop its own drugs from start to finish and instead provides its services to pharmaceutical companies to speed up their drug discovery processes. This business method allows it to focus on improving its technology, rather than taking risk in human trials. While the profitability is less than being a drug maker directly, the company's technical infrastructure continues to attract clients.
Derek Lowe has expressed skepticism on the process and stated that even if the process worked reliability, the hardest part of drug discovery are the human trials which XtalPi does not cover.
In 2016, XtalPi took part in a blind test held by Pfizer to predict the 3D structure of molecules that shows the efficacy of a drug. The program achieved a 100% prediction accuracy rate leading XtalPi to be awarded a 10-year partnership with Pfizer in early-stage drug discovery.
During the COVID-19 pandemic, XtalPi helped speed up the development of Pfizer's Paxlovid, the U.S.’s first approved Covid oral drug.
As of 2025, XtalPi serves nearly four out of every five big pharmaceutical companies globally.
= Material science =
XtalPi has ventured into material science as it is much more simple than drugs that involve the complexity of the human body and also has a shorter monetization cycle.
XtalPi has been helping commercialize Perovskite which is difficult to mass-produce. The material is more energy-efficient for solar panels.
In August 2024, GCL-Poly agreed to pay XtalPi more than $135 million to upgrade materials including perovskite and those for electric vehicle batteries.