GlaxoSmithKline plc (ADR) (NYSE:GSK) is teaming up with Alphabet Inc’s (NASDAQ:GOOG,NASDAQ:GOOGL) Verily Life Sciences to form a new company called “Galvani Bioelectronics.”
The new jointly-owned company is being created for the research, development and commercialization of various bioelectronic medicines. Galvani Bioelectronics will have its headquarters in the United Kingdom. Roughly $713 million will be invested into the company over a time period of seven years.
GSK will have a 55% equity interest in Galvani Bioelectronics and Verily will hold the remaining 45%. Moncef Slaoui, the Chairman of Global Vaccines at GlaxoSmithKline, will will act as the new company’s Chairman of the Board. He was behind much of GSK’s initial investment into the bioelectronic medicine filed, which it started work on in 2012.
The goal of bioelectronic medicines is to fix issues with how the body sometimes sends electrical signals between the nervous system and internal organs. Implants could potentially fix this by correcting distorted signals that are caused by chronic illnesses. It could potentially treat arthritis, diabetes, asthma and other chronic illnesses.
Alphabet’s Verily and GSK will be contributing their existing intellectual property rights concerning bioelectronic medicines to their new company. These intellectual property rights are in their early stages and don’t currently have a carrying value.
The name Galvani Bioelectronics was chosen for the new company as a reference back to Luigi Aloisio Galvani. He was an Italian scientist living during the 18th century and was among the first to study bioelectricity. His work resulted in the theory of bioelectricity.
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