A new joint venture between Glaxosmithkline plc (GSK) and Google's parent company, Mountain View, Calif.-based Alphabet Inc., will evaluate bioelectronics medicine to combat chronic conditions, with type 2 diabetes expected as a potential focus of initial research.

Specifically, GSK, of London, and Verily Life Sciences LLC – formerly known as Google Life Sciences – have agreed to invest up to £540 million (US$712.2 million) into Galvani Bioelectronics over seven years, subject to successful completion of various discovery and development milestones. The duo's agreement still requires antitrust approvals but is expected to close before the end of the year.

GSK anticipates holding a 55 percent interest in Galvani, while Verily will hold 45 percent.

Researchers at Galvani will evaluate miniature implantable devices that will modify electrical signals in the body to combat diseases including arthritis, diabetes and asthma. Initially, the company will focus on establishing clinical proofs of principle in inflammatory, metabolic and endocrine disorders.

The proposed implants are about the size of a grain of rice. They connect to specific groups of neurons or their nerve fibers and attempt to control electrical signaling patterns. GSK has touted the approach as a way to target a specific organ, as opposed to flooding the body with a small molecule drug. It would adjust the electronic signals between the brain and the targeted organ with minimal side effects, according to GSK.

GSK has pursued this field since 2012, with Moncef Slaoui, chairman of global vaccines, leading the way in establishing the company's investments in this area.

"Many of the processes of the human body are controlled by electrical signals firing between the nervous system and the body's organs, which may become distorted in many chronic diseases," said Slaoui, who will serve as the chairman of the new venture. With that in mind, bioelectronics medicine could harness advantages in the biology and technology to translate this "electrical conversation" and fix abnormal patterns associated with certain diseases, he added.

In June, GSK said Slaoui intended to retire from the company on June 30, 2017. A GSK spokeswoman confirmed that he intends to remain with Galvani after that date. Kris Famm, GSK's vice president of bioelectronics R&D, will serve as the company's president.

Expected to employ about 30 scientists, engineers and clinicians, Galvani will have its headquarters at GSK's global R&D center in the U.K., with a second research hub at Verily's facilities in South San Francisco.

HOPING FOR FIRST PRODUCTS WITHIN A DECADE

GSK has predicted that the first bioelectronic medicines could come up for approval within the next decade, particularly as interest in the field rises.

"We have the intent to take this concept from preclinical to clinical proof-of-concept over the next three years, and, hopefully, if all goes well, to the first commercialization over the next more or less seven years," Slaoui said.

To further put itself ahead of the game, GSK has started a $50 million venture capital arm to invest in platforms for bioelectronics medicines. Its portfolio includes Setpoint Medical, Axon Therapies, Cala Health and Neuspera. Intriguingly, its site also lists an "APVC Newco," which reportedly is developing tech to enable future bioelectronics medications.

Valencia, Calif.-based Setpoint has gained a lot of attention recently with the focus of its bioelectronics platform falling on rheumatoid arthritis and Crohn's disease. Last fall, it reported that it had raised a total of $43 million after securing $15 million in an extension to its series C equity financing. In addition to GSK's Action Potential Venture Capital Limited (APVC), Setpoint's backers are Morgenthaler Ventures, Foundation Medical Partners, Topspin Partners, Covidien Ventures and Boston Scientific. APVC started backing Setpoint in August 2013, as did Covidien and Boston Scientific.

At the same time of financing announcement, Setpoint said APVC partner Juan-Pablo Mas, would join the private company's board. Mas commended Setpoint's progress as "impressive," adding that APVC is looking forward to working with the company on its disease targets.

Setpoint also got a lot of buzz last month after the publication of study data in the Proceedings of the National Academy of Sciences. The data showed that stimulating the vagus nerve with an implantable device significantly improved measures of disease activity in rheumatoid arthritis (RA) patients.

Kevin Tracey, president and CEO of the Feinstein Institute for Medical Research and founder of Setpoint, heralded the results, adding that they represented "a real breakthrough in our ability to help people suffering from inflammatory diseases."

The company sees the implications of the findings could go beyond RA to Crohn's, Parkinson's disease and Alzheimer's disease.

For its part, Google has attracted some big-name life sciences companies. Last year, it unveiled a partnership with Sanofi SA in the diabetes monitoring and treatment field. That came right after it reported that it would work with San Diego-based Dexcom to develop smaller and more affordable continuous glucose monitoring products.