Japan's Takeda Pharmaceutical Co. Ltd. said it will collaborate with biotechnology startup Ambys Medicines to discover and develop therapies for serious liver diseases.
Takeda will invest $100 million in the partnership, that includes its participation in Ambys Medicines' series A financing round to raise $60 million.
The Japanese drugmaker will have the option to license the first four products that reach regulatory submission globally, except the U.S. where Ambys retains full rights.
If Takeda exercises its licensing option, it will share half of the development costs for any chosen product and will make regulatory and milestone payments to the startup company.
Based in Redwood City, Calif., and backed by private equity firm Third Rock Ventures, Ambys Medicines is focused on developing therapies capable of restoring liver function, preventing the progression of liver disease, and treating the devastating complications of liver failure.