TandemAI raises $35M in Series A for small molecule discovery, wet labs
TandemAI, a small molecule- and preclinical-focused technology company, raised $35 million in a Series A round of financing a little over a year after raising an initial $25 million to get started.
Jeff HeCEO Jeff He says the company offers a three-in-one approach for biotech and pharma companies: a drug discovery platform of small molecules, China-based wet labs, and experts across various fields including chemistry and AI, all of whom work with clients to bring a drug candidate out of the preclinical stage.
“The computational resources are expensive. It could easily cost a biotech company millions of dollars and you need the experts, right?” He said. “You need a CADD or AI expert to use these tools to work closely with your medicinal chemists or biologists. So we package them all together and combine these with our wet lab services … and we don’t charge more than what a traditional CRO would charge for chemistry synthesis.”
TandemAI’s drug discovery platform has a physics-based approach to molecule and atom simulations. The platform allows scientists to look at the structure activity relationships (SAR) between proteins and molecules. This then gives scientists ideas on how to refine the molecule structure so that they can find the best molecule for the client.
While there are companies that offer these tools, it’s usually a subscription-based offering. TandemAI hopes to break down barriers to access, especially for startups, by offering computational simulations, wet labs and experts in both all at once to make the later stages of drug development more successful.
According to He, TandemAI works largely with venture-backed companies that have just finished a Series A or Series B financing round.
TandemAI has two wet labs in Shanghai and Suzhou with about 150,000 square feet of space. There are about 30 US-based employees that do method development and CADD support, He said. The company plans to increase its wet lab capacity to over 500 chemists and biologists and continue developing the drug discovery technology with this round of financing. TandemAI launched in 2021 and currently has about 50 clients, according to a press release.
He said it does require “large capital” to build out a wet lab, but that in addition to the raised funds, the company is already generating revenue.
While there have been reported tensions between China and the US when it comes to technology, particularly AI, He said that “science has no boundaries.”
“We help companies discover best-in-class and first-in-class molecules, and eventually functional molecules will benefit the patients,” He told Endpoints News. “It’s early-stage drug discovery. There are no supply issues involved or national security issues involved.”
