Compugen and Merck Serono set up biomarker company Neviah Genomics

German drug major Merck KGaA’s (MRK: DE) Merck Serono division and Israel-based Compugen (Nasdaq: CGEN) have established Neviah Genomics, a novel start-up company focused on the discovery and development of novel biomarkers for the prediction of drug-induced toxicity.

Neviah Genomics will be operating out of the Merck Serono Israel Bioincubator, with Merck Serono Ventures l providing the initial funding for the operation. Compugen will utilize certain proprietary predictive discovery technologies and receive an equity ownership in the new company and a right to royalties from potential future sales. Further financial details of the agreement were not disclosed.

Neviah Genomics represents the first investment within the framework of the recently formed Merck Serono Israel Bioincubator program. As such, Neviah Genomics will operate out of the state-of-the-art facilities inaugurated last month at Merck Serono's Israeli R&D center Inter-Lab, which offers 600 square meters of infrastructure and a wide range of incubation services for the program's new start-ups.