Artificial intelligence firm twoXAR raises $10M for partnering drive

Artificial intelligence company twoXAR--a specialist in separating signals from noise in data-rich drug discovery projects--has raised $10 million in a first-round financing led by SoftBank Ventures. Co-founder and CEO Andrew Radin says the proceeds will be used to bring forward preclinical drug candidates including candidates for diabetes, liver cancer and rheumatoid arthritis, build the pipeline with new partnering deals and spinouts, and add to its headcount. The company's business model is to use its AI technology to identify promising drug candidates, validate them through preclinical studies and then work with partners to bring them into the clinic. The Palo Alto, California-based company--which was the first investment for Silicon Valley entrepreneur Andreessen Horowitz's $200 million biotech fund in 2015--already has some collaborations under its belt. In 2016, it signed deals with the Universities of Chicago and Stanford for drug discovery programs in atherosclerosis and liver disease, respectively, as well as Mount Sinai Medical in the area of diabetic neuropathy.