Rady Children’s Hospital-San Diego is set to build a new institute, the Rady Pediatric Genomics and Systems Medicine Institute, for the research of childhood diseases.

The new institute, which will have two facilities, will be established with a $120m donation from Ernest Rady and family, and $40m of additional funding from the Rady Children’s board of trustees.

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According to the hospital, it took more than a year and a half to evaluate the design and mission of the institute.

The institute will assemble a team of scientists, researchers and clinicians that will focus on preventing, diagnosing, treating and curing childhood disease through genomics and systems medicine research.

"This Institute and gift will secure Rady Children’s place at the leading edge of research, discovery and innovation into childhood disease and injury."

Rady Children’s board chairman David Hale said: "The Institute will work closely with UC San Diego and establish relationships with other academic and research institutions, companies involved in genomics research and other children’s hospitals to advance the mission of the Institute."

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Rady Children’s president Donald Kearns said: "The commitment Ernest Rady and the board has made is truly transformative.

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"This Institute and gift will secure Rady Children’s place at the leading edge of research, discovery and innovation into childhood disease and injury, and set national and international standards for pediatric care."

Mr Rady said: "As we move into an exciting new era of medicine it is our responsibility to encourage the ambitious research and innovation that will accelerate the process by which discoveries are made and translated into cures."