Monday, March 23, 2009

Merck Serono launching corporate venture unit

By Mass High Tech Staff

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Merck Serono, the Merck KGaA division called EMD Serono in North America, is launching a corporate venture capital enterprise for biotech startups called Merck Serono Ventures, with an initial capitalization of $54.7 million.

The cash will be invested in emerging biotech companies addressing neurodegenerative diseases, oncology, autoimmune diseases, and inflammatory diseases. Additionally, Merck Serono Ventures also will focus on developing new  technologies applicable for products in Merck Serono’s core therapeutic areas.

Strategically, Merck Serono is looking to be a so-called ‘best partner’ in the biopharmaceutical industry, officials said. Creating this fund “underlines our commitment to be best partner for biotech entrepreneurs and their investors,” stated Vincent Aurentz, executive vice president of portfolio development at Merck Serono, in a press release.

Switzerland-based Merck Serono develops prescription drugs for Merck, a global pharmaceutical and chemical group. Merck Serono manufactures and markets innovative small molecules and biopharmaceuticals for patients with unmet medical needs.  Merck Serono has an annual research and development budget of about $1.34 billion.

Earlier this month, Waltham-based biotech startup Provenance Biopharmaceuticals Corp. announced it had licensed DI-Leu16-IL2, a new immunocytokine cancer treatment drug, from Merck Serono.

The company announced under the agreement it had worldwide rights to develop and sell DI-Leu16-IL2. Provenance will oversee the clinical development and commercialization of the drug.