Paresh David

(Reuters) – Alphabet, (NASDAQ:) Inc’s new health tech arm Verily declared Thursday that it has a new tie-up with L’Oreal SA to study skin health.

Verily was previously criticized by its executives for signing one-off, flashy research partnerships instead of paying more attention to recurring subscribers for its software for disease management and clinical research.

Verily has been criticised for its inability to generate profit and intermittent revenue.

A source who was briefed said Verily had reported a revenue of $400 million for last year. The source stated that Verily made more money from COVID-19 testing for outside companies than it did in 2020.

It is not public that the company reports financial results, and they declined to comment.

L’Oreal declined to reveal terms of a strategic, multi-year partnership it calls a research collaboration. Project plans included a long-term component of software and the co-development and launch of a new telecare program for consumers and dermatologists. This is Verily’s first deal with a beauty brand and comes after years of negotiations with L’Oreal.

Corporate sibling Google, which is testing an artificial intelligence tool for identifying skin conditions https://www.reuters.com/article/ctech-us-tech-fitzpatrick-exclusive-idCAKCN2DU0UA-OCATC, is not involved, executives said.

Verily President Dr. Amy Abernethy stated that her clinical studies program would support a longitudinal examination of skin problems and environment and behavior which could affect them. The results may help to develop diagnosis and treatment options.

According to Abernethy who worked with patients suffering from skin cancer, technology is not able to distinguish between the two conditions.

Barbara Lavernos is deputy chief executive at L’Oreal. She stated that by working together the aim of both companies was to empower every person to have access to personalized and comprehensive information regarding skin care.

Verily’s agreement follows a similar partnership announced last August by Colgate-Palmolive, (NYSE:) Co for oral health research.