Formation Bio acquires clinical-stage drugs that pharmaceutical companies and biotechs have already discovered, then runs them through human trials with its own clinical team and AI systems for asset selection, trial design, and enrollment. On October 28, 2026, the New York company announced a Drug Development Accelerator Fund with $600 million in capital commitments, built for partners that have more candidates than they can afford to advance and for investors seeking exposure to individual drug assets a few years from a clinical readout. The company says a growing surplus of discovered candidates is stuck for lack of development capital, and the fund is meant to finance more of them through the clinic. Each program is licensed into a newly formed company and funded through key clinical milestones, while Formation Bio's developers, scientists, and operating infrastructure run the work across the portfolio. Formation Bio serves as general partner through a wholly owned subsidiary and has committed its own capital alongside limited partners that include research foundations, institutional endowments, hospitals, and philanthropic organizations. The company says the fund is meant to support 10 to 15 acquisitions over the next three to five years, focused on Phase 1 and Phase 2 programs with a path to clinical proof of concept, and with major milestones targeted within two to four years of each deal. Selling partners can receive upfront payments and retain a share of later milestones and royalties. After meaningful clinical progress, Formation Bio expects to partner programs with larger pharmaceutical companies for commercialization or co-commercialization. Co-founders Benjamine Liu and Linhao Zhang started the company, originally called TrialSpark, because they believed clinical development had become the constraint that kept discovered drugs from reaching patients. In the fund announcement, Liu noted that discovered drug candidates roughly doubled over the past decade while annual approvals stayed roughly flat. The fund adds dedicated capital to the development organization they built so more of those programs can enter the clinic.