New York-listed drugs maker Merck has quadrupled its involvement in direct and indirect corporate venturing to $500m.
Merck reportedly plans to commit $250m as a limited partner in third-party venture capital funds in pharmaceuticals, although part of the money could also be invested directly, through its Merck Research Venture Fund, according to news provider In Vivo.
The Merck Research Venture Fund has made one undisclosed commitment already, In Vivo said, and will be initially run by the company’s senior vice-president, David Nicholson (pictured), until his planned retirement and replacement by Robert Pomerantz, worldwide head of licensing and acquisitions.
Pomerantz said: "I will be looking more at finding clear targets for drugs at an early or late stage rather than sexy technology so will back companies directly or VCs with a pipeline not just a platform."
Merck’s existing Global Health Innovation Group, the corporate venturing unit set up earlier this year to help the US-based company invest in medical technology and services, has been doubled to $250m from its original $125m at launch.
William Taranto, head of the Global group said: "We have $125m dedicated to Health Information Technology/IT and $125m to health care adjacency."
The Global Health Innovation Group has already invested $2.5m as the sole investor in the series A round for AdFlow Health Networks, a messaging system for health advice and advertising.