The venture capital firm will identify promising new technologies focusing on early-stage discovery across various therapy areas. A joint management committee of Avalon and GSK will then approve the formation of new companies based upon these technologies. Together, the two entities will finance these newly-established companies.
Avalon Ventures will provide funding of up to $30m from its new $200m Fund X.
GSK will provide seed funding, research and development support and success-based preclinical and clinical milestones up to a total of $465m for ten companies. It will have the option to acquire each company upon the generation of a clinical candidate. Should GSK elect not to exercise this option, company ownership will remain with Avalon, and Avalon will be free to enter into other strategic transactions.