The Media Line: Could AI Turn Israel into the World’s Next Biotech Superpower?

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Could AI Turn Israel into the World’s Next Biotech Superpower?

Amid rocket attacks and geopolitical tension, Israeli scientists and tech leaders are pushing forward with AI-driven biotech innovation aimed at revolutionizing drug development

By Maayan Hoffman/The Media Line

Just weeks after Iran launched hundreds of ballistic missiles at Israel, dozens of which struck Tel Aviv, a group of high-tech and biotech leaders gathered at Amazon Web Services’ (AWS) headquarters in the heart of the city to kick off the next phase of a uniquely Israeli initiative: using artificial intelligence (AI) and computational science to solve complex therapeutic challenges.

“I’m incredibly optimistic,” said Mati Gill, CEO of AION Labs. “We’re seeing what Israel’s ingenuity, creativity, and productivity can do. The same things that have helped us to develop technologies to fight this war are some of the same things that we’re seeing here go into the high-tech and biotech ecosystem.”

AION Labs, a pioneering venture studio in Israel that integrates AI and computational science into drug discovery, is partnered with Germany’s independent research institute, BioMed X. In March, the two organizations invited computational biologists, biomedical researchers, and AI specialists to apply for the opportunity to co-found a startup focused on tackling a major therapeutic challenge.

The selected startup will be based at AION Labs’ headquarters in Rehovot. Its mission is to build an AI-powered platform that can systematically identify, rank, and validate molecular target combinations for multispecific biologic drugs—treatments designed to act on multiple disease pathways simultaneously.

More than a dozen applications were submitted, and five finalist teams were selected. They met in person for the first time on Sunday at AWS’ Tel Aviv offices and are spending the week refining their proposals. One team will be chosen on Thursday to move forward with the venture.

Multispecific drugs show promise in treating complex conditions such as cancer and metabolic diseases. But designing them is far more complicated than developing single-target drugs.

Traditional discovery methods rely heavily on human-driven hypotheses, academic literature, and fragmented experimental data, typically focused on one target at a time. The new AI platform, AION Labs explained, aims to overcome these limitations by prioritizing novel drug combinations based on disease relevance, biomarker predictability, and potential for adverse reactions. The startup will target therapeutic areas such as oncology, cardiovascular disease, kidney disease, metabolic disorders, and immune-mediated conditions.

Once developed, the platform will be tested and validated with support from AION Labs’ pharmaceutical partners.

“We continue to have incredible support from our partners,” Gill told The Media Line, referencing AstraZeneca, Merck, Pfizer, Teva, the Israel Biotech Fund, Amiti Ventures, and AWS. “They say that from day one, they didn’t come for geopolitical reasons and are not leaving for geopolitical reasons. They’re coming here for the science. They come here for the technology.”

After the ceasefire between Israel and Iran, AION Labs briefly considered postponing the week-long workshop. Ultimately, the team chose to proceed. From the windows of AWS headquarters, attendees could even see damage from a recent rocket attack—a reminder, Gill said, of Israel’s determination to move forward even in crisis.

He believes AION Labs reflects the pharmaceutical industry’s future in Israel and around the world. According to him, drugmakers are increasingly turning to advanced technologies to accelerate discovery and development.

“Our industry has a problem statement, which is that we are a very inefficient industry,” Gill explained. “We generally go after the same targets. We fail over 90% of the time. Once we start in clinical trials, we have an average burn rate of over $2 billion to develop a new drug and bring it to market, which takes well over 10 years. That whole process can be accelerated and fixed by bringing in computational technologies such as artificial intelligence and machine learning, and connecting that effectively with biology and chemistry, which is very hard to do, but that’s one of the solutions to that industry-wide challenge.”

Israel has not traditionally been considered a biotech hub, but Gill said that’s beginning to change. He believes the integration of advanced technology with life sciences gives Israel “the opportunity … to be one of the most central and most important hubs for biotech outside of the United States.”

He acknowledged that such a transformation will take time, but expressed confidence. “It could take a decade or two,” he said, “but I’m confident in the vision.”

AION Labs was launched just before the COVID-19 pandemic in partnership with BioMed X. Together with international pharmaceutical companies, the organization identifies a scientific challenge, recruits a multidisciplinary group of experts—typically combining biology and AI—and invites them to compete to develop a solution.

At the end of each workshop week, one team is selected to receive a $1 million investment over two years, a spot in the AION Labs innovation space, and access to mentors and pharmaceutical partners to validate their concept and grow their startup.

Since the program began three years ago, AION has backed nine companies. One shut down. Three have already raised additional capital beyond the initial $1 million, and the remaining startups are in their first or second year of development. AION’s $9 million in seed funding has helped attract an additional $18 million in follow-on investment.

Among this year’s hopefuls is Nicolas Lynn, a graduate researcher in computational genomics. AION reached out to him via LinkedIn and invited him to apply.

“I’ve participated in several hackathons,” he said, “but this experience has been awesome and really different. I am meeting some really cool people, and I think there is a tangible possibility I’ll get it in.”

Ronel Veksler, co-founder of Promise Bio—a startup applying epigenomics and AI to personalize treatment for chronic diseases—also attended the event. He launched his company through AION Labs and is now preparing to expand in the US.

“AION Labs played an essential part in our road,” Veksler told The Media Line.

Promise Bio, now two years old, has raised $8.3 million, including funding from AION. Its lead investor is Awz Ventures, and AstraZeneca and Pfizer also back the company.

According to the company’s website, the startup’s cloud-based AI platform detects post-translational modifications (PTMs) in proteins using a single blood sample. Previously, identifying even one of the 200 known PTMs required separate tests. These biomarkers are crucial for diagnosing and treating complex conditions such as autoimmune disorders.

Veksler said the pharmaceutical industry is “still slow,” but he agreed with Gill that AI could help accelerate the process. “You can make drugs faster and more efficiently.”

Guy Gorecki, director of policy and public affairs at Pfizer, said the company has supported AION Labs from the outset.

AION Labs “is an excellent example of what Pfizer sees as the transformative innovation coming out of Israel,” Gorecki told The Media Line, “We stand behind bold, AI-driven ventures like AION and additional investments Pfizer has made in Israel that align closely with our commitment to harness data and advanced technologies to accelerate drug discovery. Shortening the timeline for patients saves lives.”

Ohad Goldberg, company president at AstraZeneca Israel, echoed that support.

“As long as the science is strong, technology is strong, and more than that, the unmet need in the science environment is so big, then we’re very committed,” he said.

Gill credited Israel’s Innovation Authority with catalyzing AION’s formation. He praised the government’s early investment and long-term vision.

“Kendall Square in Boston was not built overnight,” Gill said, referring to the global biotech hub. “It was built over 40 years. It was a swampland. Twenty years later, it was an important hub. Now, it is the most important hub.

“If we take the long-term approach,” he added, “Israel can be that place.”