Earlier this month, Google announced it was restructuring the company by creating a parent company called Alphabet and spinning out its major divisions underneath into their own distinct companies.
This was a bold move by the founders. However, Wall Street mostly met it with praise, with the stock jumping 4% the day after the announcement on August 10.
Two of the spin-off companies that will be under Alphabet’s reign are health-focused and should be making quite a splash in the biotech space.
The first is a life sciences company that was born out of the highly innovative Google X Labs. The new company doesn’t have a name yet, but rest assured it will be catchier than their current moniker, the “life sciences group.”
Google co-founder Sergey Brin stated: “While the reporting structure will be different, their goal remains the same. They’ll continue to work with other life sciences companies to move new technologies from early R&D to clinical testing – and, hopefully – transform the way we detect, prevent, and manage disease.”
The company will still remain focused on its current initiatives, which include a nanodiagnostics platform, a cardiac activity monitor, and a baseline study.
The baseline study is focused on an effort to collect large amounts of genetic and molecular information from hundreds of people, crunch the data using Google’s massive server infrastructure, and create a picture of what a healthy human body looks like, from the DNA up!
In 2013, Google got a jump start on its plans for biotech spin-off companies by forming an independent company called Calico. Calico will join the life sciences group as a subsidiary under the Alphabet umbrella.
Calico’s main focus has been on leveraging the latest in IT and biotech breakthroughs to combat aging and its associated diseases. Bottom line, they are focused on understanding and tweaking the biology that controls lifespan, allowing people to live longer and healthier lives.
Both of these companies now have the business structure of the Alphabet brand to make their research and technologies skyrocket. I will be tracking each closely as this industry continues to bloom.
Editor, BioTech Intel Trader