Since the day it was formed last year, Calico, Google's life-science spinoff, made its first major step after  announcing that a joint health venture with drug giant AbbVie is under way. The two companies shall work together in building a "world-class" facility in the Bay Area that would be used for research and development. With total cost that could reach up to $1.5 billion, the project will work on developing treatments for age-related diseases.

At this point, Calico and AbbVie revealed few insights on the details of the facility such as the location, size and what to expect in their 10-year partnership. Based on some reports, the two companies said that each will initially spend $250 million with each side having the potential to add $500 million. It added that Calico plans to fill critical positions as soon as possible and establish a substantial team of research staff and scientists.

Google concocted Calico last year as a separate business with the aim of pursuing medical breakthroughs in helping people to live longer. Starting from that goal, Calico has been conducting extensive research to find more explanation on the human body's age cycle. At the same time, the company had been working on discovering new technology that could lead to curing cancer.

AbbVie is a spin-off company from Abbott Laboratories that will handle the marketing side of the drugs. Based in North Chicago, Illinois, AbbVie is already working on drugs to combat Crohn's, Parkinson's disease and other types of ailment.

"Our relationship with AbbVie is a pivotal event for Calico, whose mission is to develop life-enhancing therapies for people with age-related diseases. It will greatly accelerate our efforts to understand the science of aging, advance our clinical work, and help bring important therapies to patients everywhere," says Art Levinson, CEO and founder of Calico, and also the former chairman and CEO of Genentech.

Apart from discovering new drugs, the partnership of Calico and AbbVie also brings with it other opportunities in the Bay Area. The move will definitely create a big boost to the area's biotech efforts in defying several health problems that affect the increasing population of older people.