A New York investment management firm has pledged $65 million to a new venture with UC San Diego to bridge the divide between basic research and clinical trials.

Poseidon Innovation, created by Deerfield Management and UC San Diego, will fund early-stage drug development. In addition, Deerfield may invest in promising spin-off companies that emerge from the partnership.

This venture, UC San Diego officials say, will smooth the path to an investigational new drug application, or IND, which must be obtained to start human clinical trials.

“Poseidon fills a gap in early-stage funding and support that many novel projects struggle to fill. This program will allow more projects to reach a critical decision point and, if successful, projects will have full funding to complete all studies necessary to file an IND application,” Paul Roben, associate vice chancellor for the Office of Innovation & Commercialization at UC San Diego, said in a statement.

He added: “This alone should provide investigators with tremendous time savings as the struggle for funding will be over.”

Roben is part of a steering committee overseeing projects, which also includes James McKerrow, dean of Skaggs School of Pharmacy and Pharmaceutical Sciences; Alan Saltiel, director of the Institute for Diabetes and Metabolic Health; and Deerfield members.

Deerfield has also entered into drug research partnerships with the likes of Harvard and MIT.