Pfizer Inc. (NYSE: PFE) shares were up marginally on Wednesday after the pharmaceutical giant announced that it would be committing over half a billion dollars to its venture capital arm.
Essentially the firm intends to invest $600 million in biotechnology and other emerging growth companies through Pfizer Ventures, the company’s venture investment vehicle.
Additionally, Pfizer will extend its leadership as a venture capital investor with an expanded team that leverages expertise across venture capital investing, business development, drug discovery and clinical development.
As for the plan, Pfizer Ventures will seek to invest roughly 25% of its available capital ($150 million) in promising early-stage neuroscience companies. Ultimately Pfizer will be able to support a broad array of early neuroscience research and product development opportunities, which are critical in this nascent area of science.
Barbara Dalton, Ph.D., Vice President, Pfizer Worldwide Business Development and senior managing Partner of Pfizer Ventures said:
By expanding Pfizer’s venture capital efforts under Pfizer Ventures, we hope to extend both the breadth and depth of Pfizer’s support for the development of cutting-edge science from concept to products. Building on our existing investments and proven track-record, we will look to identify and invest in emerging companies that are advancing compounds and technologies with the hope of delivering life-changing therapies to patients in need.
Shares of Pfizer were last seen at $36.53, with a consensus analyst price target of $39.60 and a 52-week trading range of $31.67 to $39.43.