Alphabet’s health technology arm generated $1 billion in revenue.

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Actually, the Alphabet Inc. The life sciences division, which has tested diabetes-detecting contact lenses and launched Covid-19 testing programs, raised $1 billion in new investments led by its parent company, saying it is strengthening its battle chest as the health-tech market heats up.

As part of Friday’s announcement, Verily also said two executives will be leaving their positions at the company. Founder and longtime CEO Andy Conrad will become executive chairman, and Werley’s current president, Stephen Gillett, will step in as CEO in January. Chief Financial Officer Deepak Ahuja has left for “another opportunity”.

The capital infusion will be used to support the company’s data platforms, research and technology efforts aimed at making healthcare more personalized, Verily said. The company will consider further investment in strategic partnerships and possible acquisitions. The new roles are part of succession planning as the company becomes more operational and business-focused, he said.

Actually, before Google Life Sciences was part of a semi-secret research and development group at Google X, until it was spun off as an independent subsidiary of Alphabet in 2015.

Daniel Ives, an analyst at Wedbush Securities, said the cash infusion will better position Verily to compete as dealmaking accelerates in the health tech space. In July Amazon It said it would acquire One Medical Clinics in an all-cash deal valued at $3.49 billion.

“It’s an arms race with Amazon. Apple, Microsoft And other tech startups are building their strategic partnerships and muscle in the healthcare vertical,” Ives said. “I see the billion dollars of capital as dry powder just to do more M&A and get into investment mode in the next 12 to 18 months when it really matters.”

Fidelity is working to grow its other betting businesses to profitability. The group posted a loss of nearly $5.3 billion last year. The developments at Verily reflect last year’s restructuring of Alphabet’s self-driving car unit Waymo and could pave the way for a breakup, Bloomberg Intelligence analysts wrote in a note after the announcement.

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