AbbVie Inc (NYSE:ABBV), the specialty pharma firm spun off from Abbott Laboratories (NYSE:ABT) almost a year ago, and Google Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) new Calico division will spend up to $1.5 billion to research cures to age-related diseases such as cancer and neurodegenerative disorders.
The September 3rd statement announcing the new partnership noted that Calico is responsible for research and development, and will construct a new bio-research facility in the San Francisco area. AbbVie is assuming responsibility for late-stage trials and commercialization activities. Each company will chip in $250 million to get things off the ground, and have also committed another $500 million each in the future.
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Statement from AbbVie’s Chief Scientific Officer
Both companies were notably enthusiastic about the new partnership. According to Michael Severino, AbbVie’s chief scientific officer, AbbVie’s “broad R&D experience and capabilities will complement Calico’s biotechnology expertise and innovative scientific approaches.”
AbbVie in expansion mode
Chicgo-based AbbVie has made a number of acquisitions since being spun off from Abbott last year. the enterprise will move its tax address outside the U.S. after completing a $55 billion purchase of Shire Plc later this year, In addition, earlier on Wednesday, the growing pharma giant announced a $275 million clinical development agreement for Infinity Pharmaceutical Inc.’s duvelisib, an innovative new cancer treatment.
More Google’s on Calico
Calico is a new life-sciences company created by Google Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) in September 2013 that is focused on aging and related diseases. The new firm is led by the legendary Art Levinson, who is chairman of Roche Holding Ltd. (ADR) (OTCMKTS:RHHBY) (VTX:ROG)’s Genentech and Apple Inc. (NASDAQ:AAPL).
In announcing Calico’s creation last year, Google CEO Larry Page wrote in a blog post that the new enterprise hoped to improve “millions of lives” with “longer term, moonshot thinking around health care and biotechnology.”
“Our goal is to make progress on a very basic challenge: how to help people stay healthier for longer,” Levinson wrote in a blog post regarding the AbbVie partnership today. The collaboration with AbbVie will “turbocharge our efforts,” he commented.