Novartis and UK AI-driven biotech Relation Therapeutics agreed a multi-program collaboration to discover and advance targets for atopic and immune-dysregulation diseases. Relation will receive an initial $55 million package including upfront cash, equity and R&D funding, with up to $1.7 billion in preclinical-to-commercial milestones and tiered royalties. Relation will provide its Lab-in-the-Loop functional genomics platform and patient-derived multiomic datasets; Novartis will own worldwide development and commercialization rights. The deal marries Relation’s AI-enabled target discovery and functional genomics with Novartis’s development scale in immuno-dermatology and atopic disease. Relation will lead observational studies and generate functional cell atlases from patient tissue to nominate and validate targets. The collaboration signals continued Big Pharma interest in AI-enabled discovery while structuring risk/reward through heavy milestone upside. Sources: Relation Therapeutics and Novartis press releases and company statements presented during the announcement.