ByteDance spins off AI drug discovery unit Anew Labs with $290 million funding

ByteDance has raised $290 million for Anew Labs, its new AI drug discovery company, valuing it at $1.5 billion. ByteDance kept 56% ownership after the round. Investors including HSG, IDG Capital, and Hillhouse Investment led the funding. It is the largest Series A investment in Chinese healthcare in four years.

ByteDance separated Anew Labs from its main business because pharmaceutical development needs different management and much longer timelines than consumer technology. The move lets Anew Labs work independently.

The company has built AI tools that predict and design protein structures. It also has four drug candidates in development. One is an AI-designed treatment for inflammatory conditions that researchers presented at an immunology conference in April.