Agreements

* On April 23, 2013, Avalon Ventures has announced that it will partner with GSK to fund as many as 10 drug discovery start-up companies over the next three years. In a deal worth up to $495 million, the collaboration combines Avalon Ventures’ successful approach of investigating in early-stage life science innovation with GSK’s expertise and resources in drug discovery and development. Under the collaboration, Avalon Ventures will identify promising new technologies focusing on early-stage discovery across multiple therapy areas. GSK will provide financing and technical support to the small startups established by the venture capitalists. GSK will get to approve which groups get chosen for funding, as well as have the first rights on buying each new company.

Avalon Venture will provide executive leadership and operational management consistent with its current portfolio strategy. Once a clinical candidate is generated, GSK will have the option to acquire the company. If GSK decides against acquiring the company, Avalon will own the company and is free to enter into other strategic transactions.

Under the collaboration, the technologies can come from any location, however the companies that are created will be located in San Diego. The companies created will only have a few employees and will focus on a single compound each. Medical conditions ranging from infectious diseases to cancer will be targeted.