Google’s new company Calico, recently set up to tackle age-related diseases, have forged a deal with US pharmaceutical company AbbVie, in which both parties will invest $250M to create Calico research facilities and collaborate on the research, discovery and development of new medicines.
The deal, announced Wednesday 3rd September, 2014, aims to aid Calico in leveraging its scientific expertise to create research facilities in the San Francisco Bay area and may receive a further $500M from each company.
In a joint press release, the companies said: “Calico expects to begin filling critical positions immediately and plans to establish a substantial team of scientists and research staff in the San Francisco Bay area.”
Calico, headed by ex-Genentech CEO, Arthur D. Levinson, was initiated as a separate company from Google and is indicative of the internet giant’s increasing expansion into the medical science and technology sphere – a space where they already back privately held 23and Me, a DNA ancestry test-maker.
AbbVie are the first drug makers to collaborate with the company, and will provide scientific and clinical development support and commercial expertise. The partners will share equal costs, and profits, if drugs are successfully developed.