Deerfield Management Announces $25M Grant from New York State and Empire State Development to Build a Lab of the Future at Healthcare Innovation Campus, Cure®
- Next-generation laboratory will leverage AI and ML to drastically improve speed, accuracy, and cost of drug development
NEW YORK, March 29, 2023 /PRNewswire/ -- Deerfield Management Company, a New York City-based healthcare investment firm, announced today that the State of New York and Empire State Development ("ESD") will provide $25 million in grant funding to its subsidiary, Deerfield Discovery and Development LLC, over five years to support the development of a next-generation pilot Lab of the Future (the "Lab") for early-stage drug discovery.
The 6,000-square-foot lab will function as an automated research facility, leveraging artificial intelligence, machine learning, and robotics to conduct preclinical drug development experiments with improved speed, precision, and cost-efficiency. Among other features, it will consist of a proprietary virtual screening platform and automated compound synthesis, purification, and testing capabilities.
"Since founding the Cure campus, our goals have always been to strengthen New York's health care ecosystem, inspire collaboration, and contribute to global health innovations," said James Flynn, Managing Partner, Deerfield Management. "This initiative provides us a once-in-a-lifetime opportunity to radically improve drug discovery efforts and provide a new platform for the industry. We are extremely grateful for the support of ESD and look forward to engaging the community in this effort."
Developed and managed by Deerfield Management, the Lab of the Future will be located within The Maxine and Stuart Frankel Laboratories operated by Cure Innovation Labs, a non-profit incubator for post-seed and pre-Series A start-ups in life sciences and therapeutics. Deerfield founded the healthcare innovation campus, Cure® at 345 Park Avenue South in New York City.
"The technology behind Lab of the Future has the potential to set a new standard for early-stage research in the life sciences and shift market dynamics that are hindering progress in the U.S.," said Michael Foley, Ph.D., Chief Executive Officer, Deerfield Discovery and Development. "This is a tremendous opportunity for New York to promote economic growth and create a lasting impact on science and medicine. Initially, the pilot lab is expected to bring profound benefits to academic researchers collaborating with Deerfield, Cure residents, including incubator companies in the Cure Innovation Labs, and Deerfield partners working toward life-saving therapeutics. Longer term, our goal is to make this technology broadly available across the drug development and health care spectrum."
To help capture the commercial potential of the Lab, the State of New York and ESD will fund 50% of the $50M project. The funding will directly support the purchase of essential science equipment. It will also support software and technology development (including customization, product testing, etc.), in addition to the hiring of experts in technology and preclinical development. The Lab is expected to encourage growth in New York's life sciences ecosystem and job market. It is also expected to enable U.S. workforce participation in critical drug development activities that are currently being outsourced overseas.
"This investment in Deerfield's Lab of the Future will help our state secure its standing as a hub for growth, innovation, and breakthroughs in the life sciences and help reshore vital drug research back to the U.S.," Governor Hochul said. "Deerfield's life-saving clinical research and advanced drug discoveries will fuel business activity, grow and strengthen our workforce, and bring the next generation of medicine to New York State. Support for the life sciences is critical to building a modern economy, and my administration remains committed to boosting the key industries and job creators that will move New York forward."
Select components of the Lab's technology platform, including software services, are expected to be operational by as early as 2024. A fully functioning and fully integrated prototype of the Lab is expected to be available by 2025. Upon successful completion of the five-year pilot program at Cure®, Deerfield plans to replicate the Lab of the Future's synthesis, screening, and software services through a full-scale commercial operation located at another location within New York State.
About Deerfield Management
Deerfield is an investment management firm committed to advancing healthcare through investment, information and philanthropy. The Firm works across the healthcare ecosystem to connect people, capital, ideas and technology in bold, collaborative and inclusive ways. For more information, please visit www.deerfield.com.
About Empire State Development
Empire State Development (ESD) is New York's chief economic development agency. The mission of ESD is to promote a vigorous and growing economy, encourage the creation of new job and economic opportunities, increase revenues to the State and its municipalities, and achieve stable and diversified local economies. Using loans, grants, tax credits and other forms of financial assistance, ESD strives to enhance private business investment and growth to spur job creation and support prosperous communities across New York State. ESD is also the primary administrative agency overseeing the New York State Regional Economic Development Councils and the marketing of "I LOVE NY," the State's iconic tourism brand. For more information on Regional Councils and Empire State Development, visit www.regionalcouncils.ny.gov and www.esd.ny.gov.
View original content:SOURCE Deerfield Management Company, L.P.
