Google's Calico, AbbVie strike $1.5 billion R&D pact to fight age-related diseases
- Google's new, independently-run life sciences firm Calico and U.S. pharma giant AbbVie announced an R&D pact on Wednesday that could see the companies invest a combined $1.5 billion to develop drugs that combat aging-related physical and mental health declines including cancers, dementia, and loss of mental acumen.
- This is Calico's first deal with a drug company and a 50-50 partnership down the line, with the firms putting up initial investments of $250 million each with an option to add another $500 million each at a later time. Profits and losses will be split equally.
- Calico will be tasked with initial drug discovery and early clinical testing with some help from AbbVie, while the latter firm will take on more advanced clinical testing and marketing once promising pipeline products are in place.
This deal is one of the most exciting developments in a year that's already been packed with big-name mergers and R&D pacts. Google has made sure that Calico has stellar talent behind it, hiring former Genetech CEO and Google board member Art Levinson to run the show.
AbbVie is also on a roll, announcing two major development deals in just one day. The company on Wednesday also unveiled plans to develop and market Infinity Pharmaceuticals' promising investigational cancer therapy, duvelisib, in a deal that will nab Infinity $275 million in upfront payments and potential milestone payments of another $530 million.