Royal Philips Electronics said Friday it signed a deal with startup BG Medicine aimed at gaining a deeper foothold in molecular medicine for the development of early detection and monitoring of diseases.

Although the companies didn’t release financial details about the partnership, the contract calls in part for the two to develop biomarker sets.

Biomarkers are specific molecular or cellular components that can be used to indicate the presence of a disease. They are commonly used in combination with modern imaging devices. The markers act as targets for the imaging devices to detect disease earlier and to monitor the effectiveness of subsequent therapy.

Biomarkers are also seen as a driving force behind personalized medicine. Personalized medicine may still be a decade or more away, but drug makers are increasingly using genetic and biochemical biomarkers as they push forward in their drug development efforts.

“We are at the dawn of a new era in medicine where technology and biology are applied in conjunction to create a whole new generation of approaches to diagnosis and treatment with improved clinical outcomes,” said Rick Harwig, chief technology officer of Philips.

As part of the deal, Dutch giant Philips will take a 6.3 percent minority stake in Waltham, Massachusetts-based BG Medicine.

The partnership announcement did not help Philips’ stock: shares fell $0.54 to $32.04.

Philips Semi Aftershocks

The deal also marks one of Philips’ first moves since agreeing to sell off its semiconductor unit. Earlier this month, a group of private equity firms said they would pay €3.4 billion ($4.5 billion) for an 80.1 percent stake in Philips’ semiconductor business (see Philips Semi Sold for $4.5B)

Philips said it was shedding the unit to focus on more stable and lucrative businesses. And among the focal areas, “Philips wants to concentrate on healthcare and lifestyle,” Philips Semiconductor CEO Frans van Houten told Red Herring shortly after the announcement was made (see Q&A: Philips Semi’s CEO).

Today’s news is a step toward backing up the talk. According to BG Medicine, the deal sets the stage for a series of joint initiatives that will focus on such areas as cardiovascular disease and oncology.

The deal was also a major win for BG Medicine, which was formed in 2000. The company has been built with the help of funding that has totaled more than $26 million. Among the backers are Flagship Ventures and Gilde Investment Management.

Contact the writer:RBarron@RedHerring.com