Algorae Reports $2.3M Cash, Advances AI Drug Platform and Pipeline Progress

Strategic Partnership Advances Preclinical Validation

Algorae Pharmaceuticals has marked a significant milestone by formalising a strategic partnership with the Victorian Centre for Functional Genomics at the Peter MacCallum Cancer Centre. This collaboration enables high-throughput experimental validation of 21 AI-predicted drug synergy combinations, alongside three conventionally identified combinations, across four cancer cell lines including brain, pancreas, breast, and prostate cancers. The initiative leverages a “lab in the loop” approach, aiming to refine the predictive accuracy of Algorae’s proprietary AI platform, AlgoraeOS.

Enhancements to AlgoraeOS Platform

Development of AlgoraeOS Version 2.0 is progressing strongly, with a scheduled release in the third quarter of 2025. The upgrade introduces advanced computational features such as attention mechanisms, gradient reversal layers, and a modular object-oriented programming framework. These improvements are designed to boost prediction accuracy, scalability, and processing speed through multi-GPU capabilities. Additionally, the platform now integrates multi-modality data inputs, including gene expression and pathway activation scores, enhancing its ability to identify synergistic drug interactions.

Therapeutic Pipeline Progress

Algorae’s lead drug candidates continue to advance. AI-116, targeting dementia, has demonstrated superior efficacy in preclinical models compared to existing treatments like Donepezil, with a Patent Cooperation Treaty application filed to protect its intellectual property. Meanwhile, AI-168, aimed at cardiovascular conditions, has progressed in formulation development following promising cardioprotective results from preclinical studies at Monash University’s Victorian Heart Institute.

Strengthening Commercial Leadership

The appointment of Vishal Shah as Chief Commercial Officer brings over two decades of pharmaceutical and healthcare commercial experience to Algorae. His leadership is expected to accelerate the company’s commercial partnerships and market expansion strategies, positioning Algorae to better translate its AI-driven discoveries into clinical and market success.

Financial Position and Outlook

Financially, Algorae reported a solid cash balance of $2.32 million at the end of June 2025, supported by a $318,771 R&D tax incentive rebate. The company recorded a net operating cash outflow of $264,504 for the quarter, reflecting ongoing investment in research and development. With eligibility for annual R&D rebates and a capital-efficient AI platform, Algorae remains well-capitalised to pursue its near-term clinical and commercial milestones.