ANN ARBOR, MI — University of Michigan Interim President Domenico Grasso announced Thursday the university will invest $250 million in a new biomedical innovation institute.

The investment will take place over five years and university officials plan to recruit scientists from around the world, Grasso said.

“We will merge our research strengths with entrepreneurial speed to bring discoveries from the laboratory to patients faster than ever before,” Grasso said during his address.

His announcement was the first known public mention of the new institute. University officials plan to share more details early next year, Kay Jarvis, director of public affairs, wrote in an email.

Grasso calls the forthcoming institute “one of the most ambitious investments in years.”

The new initiative will focus on biological artificial intelligence, clinical trials and commercialization to advance health care, Grasso said.

He highlighted UM researchers’ work on histotripsy, a non-invasive method to eliminate cancer tumors with ultrasound pulses. The researchers launched the company HistoSonics, which received approval from the U.S. Food and Drug Administration two years ago to treat liver tumors.

Private and public investors acquired the company for $2.25 billion this summer, Grasso noted. He said HistoSonics plans to use its technologies on other cancers.

Grasso also referenced engineer and UM graduate Kelly Johnson, who established aircraft developer Skunk Works as part of the global security and defense contractor Lockheed Martin.

He said Johnson “redefined rapid innovation” when he developed innovative aircraft at the end of World War II.

“Our institute will carry that same revolutionary spirit, advancing health sciences, supercomputing and innovation for the public good,” Grasso said. “Progress demands investment, both human and physical capital.”

The in-person crowd applauded as Grasso listed out UM’s achievements during his State of the University address.

Grasso, who is not seeking the permanent presidency role at UM, also mentioned the new $50 million civil discourse center, the long-awaited Pavilion hospital and the university’s Look to Michigan donation campaign, among other topics.

In-person attendance was invite-only and more than 1,000 community members tuned in virtually.

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