Calico Resources Corp (CVE:CKB), a company funded by Google Inc(NASDAQ:GOOG), and biopharmaceutical firm, AbbVie Inc (NYSE:ABBV), have announced a partnership to set up a research and development center.
Cnet has said in an article that the two companies will be contributing the amount equally with the upfront being $250 million each. The balance will then be paid at a future date depending on how the project progresses.
The San Francisco based facility will be carrying out research on drugs for diseases such as eurodegeneration and cancer. This will also include therapies meant to control aging.
The project has been divided into two major phases with Calico Resources Corp (CVE:CKB) overseeing the initial phase while AbbVie Inc (NYSE:ABBV) overseeing the later stages of the project. The role of Calico Resources Corp (CVE:CKB) will therefore include the development and production of the first drugs and having them go through the US Food and Drug Administration approval.
“The partnership will greatly accelerate our efforts to understand the science of aging and advance our clinical work,”
Calico CEO Arthur Levinson said in a statement. Efforts to reach the two companies for comment only redirected to Calico’s earlier press release and the CEO’s Google+ post.
An article published on Re/code discloses that in as much as the shared figure is disclosed, the budget set aside by Calico Resources Corp (CVE:CKB) isn’t known, but is believed to be quite large. With support coming from tech giant Google Inc(NASDAQ:GOOG) and the kind of major hires that took place shortly after its inception roughly one year ago, it’s obvious that Google Inc(NASDAQ:GOOG) has a fat budget for the company.
Calico, short for California Life Company, comes forth as one of Google’s strategies to expand its market share beyond just the search engine. The deal with AbbVie Inc (NYSE:ABBV) is a clear indication that Google Inc(NASDAQ:GOOG) isn’t about to relent on such efforts.
This article has been written by Victor Ochieng.