Alphabet’s life sciences division Verily is working to distance itself from Google technology as it plans for the next phase of its products and a possible future outside of its parent company, according to reporting from Insider.
The project known internally as Flywheel began in 2021 and involves transitioning Verily’s products away from Google’s internal cloud to a public version of the tech infrastructure.
Internal documents appear to reveal that an initial version of Verily’s updated technology stack is set to arrive by early next year.
- Verily is aiming for independence. As the company matures, it is looking to diversify its product offerings into new areas such as telehealth, but potential partners have often needed reassurance that Verily’s data would not be shared with Google.
- Flywheel could signal an IPO. Verily CEO Andy Conrad has previously mentioned a push towards an initial public offering, although the pandemic pushed back those plans. A current employee interviewed by Insider confirmed that an IPO is “the carrot Andy is always dangling in front of us.”
- Verily’s recent moves support the theory. It raised $700m in late 2020 before acquiring clinical trial management system SignalPath in August to expand its commercial offerings. It also recently partnered with Mayo Clinic to develop a clinical decision support tool, all while bolstering its leadership team.
The Takeaway
When Google reorganized as Alphabet in 2015, the structure was designed to give subsidiaries more flexibility to expand away from the company’s core operation. Although no large companies have yet to be spun out, the Flywheel project makes Verily look like a strong contender to be the first one. Possibly as early as next year.
