) year-old health startup is collaborating with biotechnology
drugmaker, AbbVie (
), a spin-off from Abbott Laboratories (
), for a joint venture to formulate treatments for cancer and
Alzheimer's. The project will be worth $500 million.
Google Inc. and AbbVie Inc. are to invest $250 million each.
Besides this, another $1 billion may be invested in the project, if
required. The entire expenses along with the profits earned by the
venture will be shared by both the companies.
During the first five years of the collaboration, Calico will be
looking after research and initial development, which will include
construction of a world-class facility in the San Francisco Bay
Area. In the second phase, AbbVie will be given the choice to take
up management and marketing of projects that are ready.
AbbVie will use its pharmaceutical prowess to support Calico in
scientific as well as clinical development and will use its
commercial competence to make sure that these therapies are brought
to the market.
Since Calico is headed by Arthur Levinson, chairman of Apple
), there are speculations that Google's the entry into healthcare
could include a new wearable Apple device.
Such alliances are not uncommon. Intel (
) and GE together formed Care Innovations in 2011. The joint
venture focuses on technology solutions to connect people to their
care teams and the ability to live without being dependant on
Google currently holds a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
ABBVIE INC (ABBV): Free Stock Analysis Report
GOOGLE INC-CL A (GOOGL): Free Stock Analysis
INTEL CORP (INTC): Free Stock Analysis Report
APPLE INC (AAPL): Free Stock Analysis Report
ABBOTT LABS (ABT): Free Stock Analysis Report
To read this article on Zacks.com click here.