Biomedical Frontiers: SPRING/SUMMER 1997, Vol.4, No.3
VIMRx Genomics Formed

in March of this year, Columbia University and VIMRx Pharmaceuticals Inc. announced the formation of VIMRx Genomics Inc., a new subsidiary. Under the terms of the agreement, the Columbia Genome Center (CGC) will receive $30 million in funding over five years for genetic research and VIMRx Genomics will have an option for exclusive licensing of technology developed from the application of the funds. VIMRx Pharmaceuticals owns 90 percent of the new subsidiary and Columbia has a 10 percent ownership.

The funding covers those Columbia laboratories that specifically agree to participate in the contract, says Dr. Isidore S. Edelman, director of the Columbia Genome Center. Scientists whose projects are funded by other sources continue to collaborate with CGC. More important, he says, the contract allows Columbia to retain its fundamental academic commitment to the publication of research. The contract covers gene discoveries related to specific disease states, but CGC scientists make the final decision about what they want to work on.

The open-ended nature of the agreement eliminates the delay caused by seeking grants for genetics research. "The opportunity to work on the genetic basis of a disease can arise quickly," says Dr. Edelman. "But it takes one to two years to get NIH funding for new programs. VIMRx provides a stable base of funding so scientists can pursue research with maximum efficiency."

VIMRx Genomics will have the right of first refusal on all VIMRx-funded patentable genetic discovery work relevant to human disease. Columbia will receive a share of the revenues from any discoveries that are licensed. "Instead of investing large sums in their own genomics effort, by a collaborative arrangement with us they essentially instantly have a fully functioning genomics research center that can provide them with the fruits of this technology, hopefully very quickly," says Dr. Edelman.

"This is a novel model for raising research funds and for the University to share in the financial rewards of such an endeavor," says Jack Granowitz, executive director of Columbia Innovation Enterprise. "In addition to receiving significant research support, the University also receives an equity position in VIMRx Genomics and a share of all revenues received by this company." VIMRx Genomics will locate its operation in the Audubon Biomedical Science and Technology Park.

Says Dr. Edelman: "This is a landmark contract for the University. It establishes an open-ended relationship with consultative interaction with a company but without restricting our established principles of academic research. It is the single largest commercial contract that the Health Sciences Division has ever obtained."

CGC has been supported by federal, university, and private funds. The VIMRx deal adds corporate funds and a partner to commercialize the technology developed in CGC.