MedImmune, the biologics R&D arm of Anglo-Swedish drugmaker AstraZeneca, is spinning out six molecules from its early-stage inflammation and autoimmunity programs into new independent biotech, Viela Bio.

The new company will focus on developing medicines for severe autoimmune diseases by targeting the underlying causes of each disease. It starts with three preclinical and three clinical new treatments, including lead candidate inebilizumab, an anti-CD19 monoclonal antibody that is currently in Phase II trials for treating neuromyelitis optica, a rare condition that affects the optic nerve and spinal cord in roughly five in 100,000 people. The drug was granted Orphan Drug Designation by the US Food and Drug Administration (FDA) in 2016 and by the European Medicines Agency in 2017.

Also included are MEDI14920, an anti-CD40L-Tn3 fusion protein for treating primary Sjögren’s syndrome, which is a systemic chronic inflammatory disorder, and MEDI7734, an anti-ILT7 monoclonal antibody for myositis, an inflammation of the muscles needed to move your body. Both therapies are undergoing Phase 1 development.

The deal does not include anifrolumab, which AstraZeneca has in late-stage Phase III development for treating lupus, a chronic, severe autoimmune disease.

“By establishing Viela Bio, we are creating an optimal environment for the continued development of our promising early-stage biologics portfolio in inflammation and autoimmunity. This has the potential to bring the most benefit to patients and will allow us to maintain focus on our three main therapy areas,” said Bahija Jallal, president of MedImmune and executive vice president of AstraZeneca.

Vela Bio will be based in Gaithersburg, Maryland, USA, and headed by Bing Yao, currently head of MedImmune’s Respiratory, Inflammation & Autoimmunity (RIA) Innovative Medicines business unit. Jorn Drappa, currently vice president of RIA clinical development at MedImmune, has been appointed head of R&D and chief medical officer.

The spin-out is funded with up to $250 million from a consortium of Chinese investors led by Boyu Capital, 6 Dimensions Capital, and Hillhouse Capital. Astra Zeneca will remain Viela Bio’s largest minority shareholder. Reports say the new company will create 100 jobs within three to five years.

This is not the first time that AstraZeneca has shifted assets into new biotech companies. In 2015, it spun out its investigational antibacterial drugs into Entasis Therapeutics and in 2008, it moved its gastrointestinal drug development into Albireo.