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Investing.com -- Shuttle Pharmaceuticals Holdings, Inc. (NASDAQ:SHPH) stock surged 9.2% in after-hours trading Thursday following the announcement of a non-binding letter of intent to acquire Molecule.ai, an artificial intelligence company focused on drug discovery.
The specialty pharmaceutical company plans to purchase Molecule.ai for $10 million in a combination of cash and common shares, contingent upon the completion of certain milestones that will be determined by both parties. The acquisition would give Shuttle ownership of Molecule.ai’s AI platform, which uses advanced machine learning models to evaluate novel molecules for pharmaceutical development.
Founded by AI scientist Dr. ZT Zhang, Molecule.ai’s platform aims to accelerate drug discovery through several key capabilities, including molecule property prediction, drug-target interaction modeling, and an autonomous AI framework that can perform multi-step drug discovery workflows.
As part of the agreement, Molecule.ai will extend its current AI model to support drug-target interaction and develop a first version of its Agentic AI mode for automated drug discovery workflows. The company will also leverage its connections in the AI community to recruit additional employees.
Shuttle Pharmaceuticals , a discovery and development stage company, would assume all liabilities related to Molecule.ai upon closing of the transaction. The letter of intent is non-binding, indicating that final terms could still change before a definitive agreement is reached.
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