Japan-based pharmaceutical company, Daiichi Sankyo, and Japan corporate investment unit Mitsubishi UFJ Capital have launched a new open innovation business through the Organization for Small & Medium Enterprises and Regional Innovation (OiDE Fund Investment Limited Partnership). The fund will be operated by Mitsubishi UFJ Capital with combined commitments of YEN750m ($7.5m).
Daiichi Sankyo has committed YEN100m ($1m) and Mitsubishi UFJ Capital will be investing as much as YEN200m ($2m) with the Organization for Small & Medium Enterprises and Regional Innovation pledging YEN450m ($4.5m).
Daiichi Sankyo and Mitsubishi UFJ Capital will seek out promising research results at Japanese universities that could potentially result in platform technologies. Specifically, the partnership will look to invest in new disease treatment mechanisms, vaccines, nucleic acids, next generation antibodies, peptides, drug delivery systems (DDS), regenerative medicine/cell therapy, and rare diseases.
The OiDE fund will establish venture businesses that fund entire projects for promising seed development. After development, if the venture meets predefined criteria for success, Daiichi Sankyo will have rights and duties to purchase the venture’s stock or intellectual property at a price set in advance.
“Generally, venture investments involve investment from multiple funds for each company. This has made it difficult for certain pharmaceutical companies to lend exclusive scientific assistance to ventures since multiple pharmaceutical companies could invest in each fund,” said the pharmaceutical group.