US-based pharmaceutical company Merck yesterday partnered with venture firm Flagship Ventures on a strategic collaboration.
The pair are partnering on early stage life science innovation, with Merck’s Research Ventures Fund investing in Flagship latest fund.
As part of the partnership Merck will provide Flagship with access to its insight into pharmaceutical development, commercialization and regulation, in return for "exposure" to Flagship’s investment and venture creation model.
Roger Pomerantz, senior vice president worldwide licensing and knowledge management at Merck, said: "The collaboration with Flagship underscores Merck’s commitment to fully engage with the entrepreneurial ecosystem at the earliest possible stages and to access breakthrough science for the development of novel therapeutics."
Noubar Afeyan, managing partner and chief executive officer of Flagship Ventures, said: "Disruptive innovations increasingly derive from collaborations that can connect market insights, development expertise and scientific/technological breakthroughs. We are very excited that Merck is joining our growing network of academic and industry partners that support our firm and community of over 35 life science ventures."
The partnership follows Merck investing $35m in the Merck Lumira Biosciences Fund last month, taking it to $43m raised. That fund is targeting a $50m final closing. The fund was set up by a Merck subsidiary in collaboration with venture firm Lumira Capital, and fund of funds Teralys Capital, which is also investing in the fund, and other unnamed partners, to invest in early stage life science innovation in Québec , Canada.