Faro AI, a San Diego-based clinical development technology company, has raised $37.3 million in Series B funding to expand its agentic AI capabilities.

The round was co-led by Merck Global Health Innovation Fund and S32, with participation from existing investors including General Catalyst, Northpond Ventures, Polaris Partners, PTX Capital and Zetta, as well as new investor Ankona Capital.

Faro plans to use the funding to expand its AI platform and work with pharmaceutical and biotechnology companies deploying AI agents across their clinical development operations.

The company has built proprietary clinical development data models that turn complex scientific, medical, regulatory and operational information into structured data that AI agents can understand and act on.

“By saving time and improving quality, agentic AI has the potential to transform the way the biopharmaceutical industry conducts clinical development,” said Mike Morgan, Principal at Merck Global Health Innovation Fund. “Faro has built a foundational platform that creates an important opportunity to apply AI reliably to increasingly complex workflows across the clinical development continuum.”

“This financing gives us the resources to accelerate what our customers are already asking us to do,” said Scott Chetham, co-founder and CEO of Faro. “Clinical development involves some of the most complex and interconnected workflows in biopharma. Our customers want to use AI agents not simply to generate content, but to understand development intent, reason across these processes, and automate more of the work required to move a program forward. Faro’s ontology and data models give those agents the foundation they need to do that reliably.”

Chetham continued, “We started by creating a structured model of the clinical trial because the protocol sits at the center of so many downstream development activities. As that foundation has grown, so has the opportunity. This round allows us to accelerate the development of agents that can operate across increasingly complex clinical development workflows and, over time, extend that foundation into other areas of biopharma.”

Its platform helps development teams design and manage clinical studies, generate documents, identify risks and inconsistencies, and automate workflows throughout the drug development process.

Faro says its platform is currently used by six of the world’s 10 largest pharmaceutical companies. The company was founded and is led by CEO Scott Chetham.