Algorae Pharmaceuticals – Independent Validation Confirms Predictive Power of AlgoraeOS for Drug Combination Discovery
- Noel Ong
- Dec 29, 2025
- 6 min read
Updated: Jan 13
Announcement: AlgoraeOS v2 Launched on 5 December 2025
Peter Mac Testing Validates AlgoraeOS - v2 Launched 5 December 2025 (*click here to view the announcement
Algorae Pharmaceuticals Ltd (ASX: 1AI), headquartered in Melbourne, has reported a significant technical milestone with the independent preclinical validation of its AI-driven drug-combination platform, AlgoraeOS v1 (AOS1). The validation, completed at the Victorian Centre for Functional Genomics (VCFG) at the Peter MacCallum Cancer Centre, provides the first external confirmation that AOS1 can identify synergistic drug pairs with real biological impact.
Algorae operates at the intersection of AI-enabled drug discovery and pharmaceutical commercialisation. Its core platform, AlgoraeOS, uses machine learning to identify synergistic drug combinations and optimise dose selection for preclinical development (Figure 1).
In parallel, its commercial arm, AlgoraeRx, supplies licensed and generic medicines across Australia and New Zealand through partnered manufacturers and established distribution channels.
Figure 1: Closed-Loop Learning for Better Predictions (source: 1AI)
Highlights – Independent Preclinical Validation of AlgoraeOS v1 (AOS1)
Key Validation Outcomes
Independent preclinical testing was completed by the Victorian Centre for Functional Genomics at PMCC under Professor Kaylene Simpson and Dr James McKenna.
AOS1 selected 21 drugs predicted to show synergy when combined with CBD, generating ~10,000 data points across four cancer cell lines (T98G, BT20, PANC1, 22Rv1).
The program tested 84 CBD–drug–cell combinations, including AI-predicted synergistic and non-synergistic pairs.
Using predefined internal thresholds, AOS1 demonstrated the ability to:
- Identify a subset of combinations experimentally confirmed as synergistic.
- Exclude most combinations assessed as non-synergistic.
Results showed a positive correlation across three of four global synergy models: Bliss, Loewe, and ZIP.
Several potential synergistic drug targets were identified for further preclinical work.
Building on the findings, AlgoraeOS v2 (AOS2) has been launched—trained on 5.5 million inhibition records, outperforming state-of-the-art models, including Google DeepMind benchmarks.
AOS2 will deliver the first confidence-weighted in silico predictions in December 2025.
Leadership Commentary
Chief Scientific Officer, Dr James McKenna, commented:
“These validation experiments mark an important milestone in the real-world testing of the AOS1 in silico predictions. By testing both positive and negative predictions of synergy, we have gained important insights into the strengths of the baseline version of AlgoraeOS.
Completing this program in collaboration with the VCFG has allowed us to successfully benchmark the capabilities of AOS1 and build capacity to rapidly test future in silico predictions. The promising combinations identified from this initial study can now be considered for further assessment.”
About the Project
The AOS1 validation consisted of 96 preclinical assessments using high-throughput microscopy to measure cancer-cell proliferation. Each drug pair was evaluated using four recognised global drug-interaction models—HSA, Bliss, ZIP, and Loewe—providing a conservative assessment of synergy. The study confirmed that synergy predictions by AOS1 align with three models, while highlighting known limitations associated with the fourth.
Near-term Milestones to Watch
Release of the first AOS2 in silico predictions in December 2025.
Progression of identified synergistic combinations into further in vitro or in vivo studies.
Ongoing refinement of internal scoring, ranking, and thresholding within AlgoraeOS.
Potential application of AlgoraeOS across additional therapeutic areas via research and commercial partnerships.
Samso Concluding Comments
Algorae’s momentum lies in its ability to validate AI predictions with real-world biological outcomes. The successful AOS1 evaluation is not just a scientific milestone—it represents a commercial inflection point where AI-driven drug discovery becomes quantifiably more efficient. Over time, this could lead to accelerated preclinical decision-making, better allocation of development capital, and stronger commercial partnerships.
The launch of AOS2 points toward a deeper and more scalable computational engine. A platform trained at this magnitude, outperforming leading global models, positions AlgoraeOS as a serious player in AI-based pharmaceutical development. The inclusion of confidence-weighted predictions also adds a layer of transparency and reliability that is increasingly demanded by industry partners.
For shareholders, the integration of validated biological findings with next-generation AI models creates a pathway toward expanding the Company’s relevance across oncology and other therapeutic areas. The dual business model—AI discovery plus commercial supply through AlgoraeRx—helps diversify revenue pathways while the platform matures.
As Algorae moves into 2026, the combination of validated science, advanced AI modelling, and clear commercial intent positions the Company to unlock more opportunities across the global pharmaceutical landscape.
The Market Discussion
Since we first covered 1AI way back in May 2025 (AI-116: A New Hope in the Fight Against Dementia.), the fortunes of the company have been very encouraging. From AUD $0.005, it is now AUD $0.013 with a current market capitalisation of AUD $16.88M as we write this on the 23rd December 2025.
Figure 2: Share price chart for 1AI as of 23rd December 2025 (source: CommSec)
As you can see in Figure 2, a technical trader would be looking for a breakout from the current price. As we move into a reliance on technology with a much higher tolerance level, the success of what 1AI has in store will likely become the norm. This is where businesses take advantage of the market, and it is typically when business owners see a rise in market share. It is always about market acceptance and market dominance with positioning.
What I see in Figure 2 is the volume when the share price was stabilising and a lack of volume when the share price was sliding. If you do your own research and look at the volume to price action prior to 2021, you will notice a stark contrast in volume activity with the share price. This is a positive sign, as it shows there is greater interest in the stock now than ever.
In my opinion, keep following, take a position, and as pointed out, Samso has seen the price appreciation since May 2025.
Check out our Previous coverage on 1AI:
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