GSK partners with venture capitalist to back start-ups
In a deal worth almost half a billion US dollars, GlaxoSmithKline is partnering with an experienced venture capitalist to find new start-ups for drug discovery.
GSK will sign off on the investments identified by Avalon Ventures and in return for the cash will gain exclusive rights to successful discoveries. GSK is committing $465 of the $495 million.
The partners expect to find around ten start-ups to invest in.
“We are going to immediately own this idea if it is successful, and the level of financial exposure is, frankly, quite small.”
Moncef Slaoui, head of research and development, GlaxoSmithKline (as reported by Wall Street Journal).
The move by GSK to look beyond its internal start-up efforts is also happening elsewhere in the pharma industry.
Glaxo in Drug-Discovery Venture Capital Deal (Fox News)
Don't miss your daily pharmaphorum news.
SUBSCRIBE free here.