Shuttle Pharma signs letter of intent to acquire AI firm Molecule.ai

GAITHERSBURG, Md. - Shuttle Pharmaceuticals Holdings, Inc. (Nasdaq:SHPH), a clinical-stage company with a current market capitalization of $5.1 million and a "Weak" InvestingPro Financial Health score, announced Friday it has executed a non-binding letter of intent to acquire Molecule.ai, an artificial intelligence company specializing in drug discovery technology.

The proposed $10 million acquisition would be paid in a combination of cash and common shares of Shuttle, contingent upon the completion of certain milestones to be determined by both parties. According to InvestingPro data, Shuttle maintains a healthy current ratio of 3.07, with liquid assets exceeding short-term obligations.

Founded by AI scientist Dr. ZT Zhang, Molecule.ai has developed a platform that uses advanced machine learning models to evaluate novel molecules for pharmaceutical development. The technology includes features for molecule property prediction, drug-target interaction modeling, and an autonomous framework for drug discovery workflows.

According to the letter of intent, Molecule.ai will extend its current AI model to support drug-target interaction and develop an automatic workflow system for drug discovery. The company will also assist Shuttle in recruiting additional employees from the artificial intelligence community.

Shuttle Pharmaceuticals focuses on developing therapies designed to enhance the effectiveness of radiation therapy in cancer treatment while limiting side effects.

The announcement was made in a company press release statement. As a non-binding agreement, the acquisition remains subject to final terms and conditions before closing.

In other recent news, Shuttle Pharmaceuticals Holdings, Inc. has announced a non-binding letter of intent to acquire Molecule.ai, an artificial intelligence company specializing in drug discovery. The proposed acquisition is valued at $10 million, to be paid in a combination of cash and common shares, contingent upon the completion of certain milestones agreed upon by both parties. This move is expected to provide Shuttle Pharmaceuticals with Molecule.ai’s AI platform for evaluating novel molecules in pharmaceutical development.

Additionally, Shuttle Pharmaceuticals has made several changes to its board of directors. Sachin Pathigoda and Angel Liriano have been appointed as directors, with Pathigoda becoming Chairman of the Nominating and Corporate Governance Committee and joining the Audit Committee, while Liriano has taken on the role of Chairman of the Compensation Committee. George Scorsis, a current director, has been appointed Chairman of the Audit Committee. The company also announced the resignation of Joseph Tung from its board, noting that the resignation was not due to any disagreement requiring disclosure.

Moreover, Adam Chambers has joined the board of directors, with the company confirming there are no family ties between him and other directors or executive officers. Chambers is the principal of Bowery Consulting Group Inc., which is involved in Shuttle Pharmaceuticals’ revolving loan agreement and consulting services agreement. These developments reflect ongoing strategic and governance changes within Shuttle Pharmaceuticals.

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