GSK to Fund Canadian Life Sciences Start-Ups, Institutes

(USGS.gov)

The global pharmaceutical company GlaxoSmithKline Inc. (GSK) announced in Toronto a new $50 million fund for early stage life sciences research in Canada. GSK says the Canada Life Sciences Innovation Fund will identify investment opportunities at Canada’s academic and health institutions, translational research centers, and start-up companies.

Paul Lucas, president of GlaxoSmithKline Canada, calls the fund “an important step in addressing Canada’s innovation gap.” Earlier this month, industry market research company Research Infosource reported that total corporate R&D spending in Canada dropped for the fifth year in a row. The report also showed pharmaceutical and biotech companies were not among the leading R&D investors in Canada, while in Europe and the U.S., pharmaceutical companies are among the top R&D spenders.

The Canada Life Sciences Innovation Fund will be managed by SR One, GSK’s corporate venture capital (VC) division. SR One says it has invested some $650 million in 140 early-stage companies, mainly biotechs, since 1985. Its current portfolio has some 25 private and public companies.

SR One currently operates either as a lead investor or participant in VC syndicates. In the past, SR One has not requested product rights or options, and they say they keep a strict firewall with GSK regarding any confidential information.

The Canada Life Sciences Innovation Fund is expected to have more interaction with GSK, however. Lucas noted that GSK is “excited by the prospect of developing even closer ties with leading research organizations across Canada to enhance opportunities for innovation and create new high-value jobs.”

Read more:

• Canadian Corporate R&D Spending Drops for 5th Straight Year
• Pharma, Technology Lead Worldwide Corporate R&D Rebound

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