The Japanese government is planning to launch a venture capital fund to back research into drugs targeting diseases such as cancer, hepatitis and diabetes.
The vehicle will look to raise between JPY30bn and JPY40bn ($375m and $500m) by 2014, and is expected to receive commitments from state-backed fund Innovation Network Corporation of Japan (INCJ).
Other financial institutions, pharmaceutical companies and venture-capital firms are also expected to back the new fund, Nikkei reported.
The vehicle will be overseen by the National Institute of Biomedical Innovation (NIBIO), which will be permitted to raise the fund once it receives permission from the Japanese parliament in 2013, the report added.
The fund will work with other health organisations to identify promising projects being undertaken by universities or individual researchers.
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