AlgoraeOS v2 Sets New Benchmark for AI Drug Discovery
- Noel Ong
- 12 minutes ago
- 6 min read
Announcement
AlgoraeOS Version 2 AI Platform Launched 10 November 2025 (Click here to view the announcement)
Algorae Pharmaceuticals Limited (ASX: 1AI) has launched AlgoraeOS Version 2, a major upgrade to its AI-driven platform for drug-combination discovery. Developed in partnership with UNSW Biomedical AI Laboratory, UNSW AI Institute, and CSIRO Data61, the new system represents a significant advancement in modelling complex therapeutic interactions.
Based in Melbourne, Victoria, Algorae continues to establish itself as one of Australia’s few pure-play AI-enabled pharmaceutical companies, focusing on accelerating drug discovery and pharmaceutical commercialisation.
About Algorae Pharmaceuticals
Algorae is developing a proprietary AI-driven drug discovery and development platform called AlgoraeOS, designed to use artificial intelligence and big data analytics to identify and optimise therapeutic candidates.
The platform is intended to support multiple stages: from in-silico target prediction and repositioning, through to pre-clinical and clinical development. The idea is a feedback loop where data from development feeds back into the system to refine predictions.
Meanwhile, the company is advancing a therapeutic pipeline alongside the platform, targeting several indications:
Dementia – drug candidate code AI-116.
Cardiovascular disease – candidate AI-168.
Parkinson’s disease – program around “NTCELL” (originating from previous business iteration) and broader neurological focus.
The Business of Algorae Pharmaceuticals
Algorae Pharmaceuticals operates two complementary business streams:
AlgoraeOS – its proprietary AI platform that identifies synergistic drug combinations and optimises dose selection for preclinical programs (Figure 1).
AlgoraeRx – the commercialisation division that sources, licenses, and supplies generic and specialty medicines across Australia and New Zealand through established manufacturing and distribution channels.
Figure 1: Closed-Loop Learning for Better Predictions (source: 1AI)
This dual-track model enables the Company to blend machine learning research with tangible pharmaceutical product development, creating a sustainable innovation pipeline that links predictive AI with real-world therapeutics (Figure 2).
Figure 2: AlgoraeOS AI-enabled Drug Synergy Predictor (source: 1AI)
Highlights — AlgoraeOS Version 2: Setting a New Standard in AI-Enabled Drug Synergy
Major Platform Upgrade: Launch of AlgoraeOS v2, a next-generation AI system for drug-combination discovery.
Benchmark Leadership: Outperformed Google DeepMind’s TxGemma-27B-Predict and Tx-LLM (M) on the NCI-ALMANAC dataset using a 70/10/20 validation split.
Trained at Scale: Modelled over 5.5 million unique inhibition records (expanded to ~11 million with augmentation), incorporating full dose–response surfaces across Bliss, Loewe, HSA, and ZIP synergy metrics.
Confidence-Weighted Predictions: Provides outcome probabilities with quantified uncertainty for risk-aware experimental design.
Pipeline Integration: To be deployed across Algorae’s preclinical programs for dose selection and prioritisation of high-value drug combinations.
In-Silico Fixed-Dose Predictions: First AI-driven FDC results expected in Q4 2025.
Publication: Research paper titled “Uncertainty-Aware Deep Learning for Multi-Metric and Dose-Specific Prediction of Drug Synergy” submitted for publication (DOI link included).
Leadership Commentary
A/Prof Fatemeh Vafaee, UNSW Sydney and UNSW AI Institute, commented:
“AlgoraeOS represents a new generation of AI models that not only predict outcomes but also understand their own limits. By combining biological knowledge with uncertainty-aware deep learning, we can now model drug interactions with greater reliability and generalisability than ever before.”
Dr Muhammad Javad Heydari, Postdoctoral Research Associate, UNSW Sydney, commented:
“AlgoraeOS is designed to analyse combination therapies the way a modern lab approaches them: integrating mechanisms, context and dose in an advanced AI model. It turns large-scale biological data into clear guidance on which drug pairs to advance, at what doses, and with quantified risk for each decision.”
Executive Chairman, Mr David Hainsworth, stated:
“Today’s launch of AlgoraeOS v2 is a significant milestone for the Company and positions artificial intelligence as the cornerstone of our R&D programs. Across published benchmarks, v2 delivered clear performance gains over representative state-of-the-art models, a major achievement for Algorae and the UNSW AI team. We look forward to providing further updates to shareholders as we progress our dual-track strategy of AI-driven innovation and pharmaceutical commercialisation.”
About the Project
While headquartered in Melbourne, Algorae’s collaborative network extends nationally, with AI R&D partnerships across Sydney’s UNSW AI Institute and integration support from CSIRO Data61. The AlgoraeOS project aligns with Australia’s growing strategic positioning in AI-enabled biotechnology, where computational modelling directly accelerates the discovery of combination therapies in oncology and other complex diseases.
Near-Term Milestones to Watch
Q4 2025: Release of in-silico Fixed-Dose Combination (FDC) predictions to guide preclinical selection.
Q1 2026: Operational integration of AlgoraeOS v2 outputs into preclinical candidate-selection workflows.
2026 (Publication): Peer-reviewed paper on the v2 architecture, uncertainty modelling, and benchmarking performance.
Pipeline expansion: Broader deployment of AlgoraeOS v2 beyond oncology, where combo regimens are critical (subject to indication-specific validation).
Commercial build-out: Continued scaling of the AlgoraeRx arm (AlgoraeRx Pty Ltd established) to support specialty/generic medicines supply.
How Samso Understands the Investment Memo for the Company
From an investor’s perspective, Algorae Pharmaceuticals (ASX: 1AI) offers exposure to one of the most scalable intersections of AI and drug development. The upgrade to AlgoraeOS v2 signifies:
A proof-of-concept leap in algorithmic accuracy and biological contextualisation.
A tangible route toward data-driven R&D cost reduction, critical in preclinical validation cycles.
Continued development within a university–industry collaboration model, reducing burn rates while leveraging top-tier academic AI infrastructure.
A clear dual revenue narrative through AI-driven intellectual property and pharmaceutical distribution income.
Samso Concluding Comments
AI-driven drug discovery has moved from concept to competition, and Algorae’s partnership-led execution makes this launch more than just a technical milestone. The Company’s approach—training on millions of data points across multiple synergy metrics—reflects a genuine understanding of where predictive AI meets clinical relevance.
The combination of confidence-weighted outputs and multi-metric generalisation positions AlgoraeOS v2 as more than an incremental update; it is a paradigm shift in how preclinical programs are designed.
With DeepMind’s models serving as benchmarks, outperforming them places Algorae squarely on the global AI innovation map. The ability to not only predict outcomes but also measure its own uncertainty represents a step toward decision-grade AI.
In short, AlgoraeOS v2 is Australia’s answer to precision AI in therapeutic discovery—a fusion of biological science, computation, and commercial application.
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