# Flagship AI Drug Discovery Biotechs Valo and Montai Merge

Valo Health and Montai Therapeutics, two artificial intelligence-driven drug discovery and development companies founded by Flagship Pioneering, have agreed to merge. The combined entity will advance Montai’s early-stage and preclinical pipeline while continuing existing high-profile partnerships.

The merger brings together two biotechs that use AI to accelerate the identification and development of new medicines. Valo focuses on integrating data from human biology and clinical experience to build drug programs. Montai applies AI to discover and develop therapies for complex diseases.

**Why it matters**

The consolidation of AI-native biotechs reflects a broader trend in the life sciences: computational tools are becoming central to drug discovery, but the field remains capital-intensive and high-risk. Merging pipelines and platforms can reduce duplication, extend financial runways, and increase the chances of bringing AI-designed drugs to clinical testing. For animal health and human medicine alike, faster, data-driven discovery could eventually mean more therapies reaching patients and veterinarians.

Source: [original report](https://www.fiercebiotech.com/biotech/flagship-ai-based-biotechs-valo-montai-tie-knot)