Excelsior Sciences Secures $95M to Revolutionize AI-Driven Small Molecule Drug Discovery

Excelsior Sciences announced a landmark $95 million funding round on December 3, 2025, comprising a $70 million Series A led by Deerfield Management, Khosla Ventures, and Sofinnova Partners, plus a $25 million grant from New York's Empire State Development. This capital will accelerate the New York-based startup's proprietary "smart bloccs" platform, which integrates AI, robotics, and novel modular chemistry to enable closed-loop discovery and manufacturing of small molecules—the backbone of about 60% of new FDA-approved drugs. CEO Michael Foley emphasized that the technology addresses the industry's pain points, where traditional processes often span over a decade and cost billions due to bespoke synthesis for each molecule.

The smart bloccs system redefines drug development by creating a "modular language" that machines can execute and AI can optimize, dramatically compressing cycles from four months across global contractors to roughly two weeks in automated facilities. Investors like Deerfield's Jim Flynn highlighted its potential to generate rich data for AI models, enabling rapid iteration on therapies while supporting scale-up for clinical trials—potentially saving an additional 12-18 months. Backers including Eli Lilly , Cornucopian Capital, Illinois Ventures, MIT, and Princeton see it as the missing link for AI-designed drugs, turning theoretical models into tangible compounds.

Excelsior, spun out from Deerfield, plans to demonstrate its full platform within 12 months and apply it to at least one internal drug discovery program, while forging partnerships in therapeutics and materials science. This funding reflects booming investor confidence in AI's transformative role in pharma, where automated synthesis platforms promise faster, data-rich experimentation to outpace conventional timelines. The approach also aids U.S. drug reshoring by reducing reliance on overseas manufacturing.

As small molecules remain dominant despite rising biologics, Excelsior's machine-readable chemistry positions it to lead the AI-pharma convergence, potentially reshaping how 60% of new medicines reach patients more efficiently.