SAN FRANCISCO – Google's (GOOGL) ambitious health startup is teaming up with biotechnology drugmaker AbbVie (ABBV) in a $500 million joint venture that will try to develop new ways to treat cancer and other diseases such as Alzheimer's.
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The alliance announced Wednesday calls for Google Inc. and AbbVie Inc. to each invest $250 million in the project. They will split all expenses and any profits generated by the venture.
Calico, a company created by Google last year, will manage a team of scientists who will work at a research-and-development lab in the San Francisco Bay Area. The precise location and size of the new lab hasn't been determined.
AbbVie, a spin-off from Abbott Laboratories, will oversee the marketing of the drugs.
Calico is run by former Genentech CEO Arthur Levinson.