J&J forms 'innovation centres' in global biotech hubs to access emerging tech

Johnson & Johnson's new regional "innovation centres" will expand on the company's success with the US Janssen Labs project that opened earlier this year in San Diego to assist life science startups and connect the pharmaceutical company to promising new therapeutics, medical devices and consumer healthcare products (scripintelligence.com, 20 January 2012).

J&J announced on 18 September that it will establish four innovation centres in California (in San Francisco with a San Diego office), Boston, London, UK (covering Europe) and China (at a site to be decided) within the coming months to "accelerate early innovation and enhance opportunities for collaboration and investment across its global healthcare businesses."

The company and its Big Pharma peers have stepped up interactions with academia and small biotech firms in recent years to backfill pipelines facing generic competition.

J&J's stock inched higher, closing up $0.30 - a less than 1% increase from 17 September - at $68.55 per share after it announced the innovation initiative. The stock's 52-week range is $60.83 to $69.75.

Each of the company's regional hubs will have 15 to 20 science and technology experts, deal negotiators, and financial and legal advisors equipped to assist both academic researchers with fresh ideas and early-stage companies nearing preclinical proof of concept.

"It's really an extension of what we've been doing in San Diego," Diego Miralles, the San Diego-based head of J&J's California innovation centre, told Scrip. "It's clear when you are in innovation hot spots how important it is to be in close communication with the innovation community. We wanted to take it beyond San Diego," Dr Miralles said.

He noted that Janssen Labs, where J&J's Janssen Research and Development subsidiary provides low-cost research and office space to startup companies, as well as regulatory and financial advice, has been "extremely fruitful" in terms of the number of entrepreneurs interested in setting up shop at the research facility.

The support at Janssen Labs comes with no strings attached - in other words, no guarantee that J&J or Janssen will buy the startups or license their technology. The same may be true for entrepreneurs that come in contact with the new innovation centres.

Dr Miralles said J&J will consider whether to invest in a startup, license its technology or acquire early-stage firms or assets on a case-by-case basis depending on the pharma company's needs and interests.

J&J's business development team will continue to negotiate deals and financing with mid-sized and large biotech companies. But the efforts of the company's Corporate Office of Science and Technology, its venture investing arm Johnson & Johnson Development Corp, and its seed-stage business accelerator known as RedScript Ventures will be consolidated at the regional innovation hubs.

"One of the many reasons for doing this is to make it easier for the outside world to access Johnson & Johnson," Dr Miralles said.

The regional innovation centres will give J&J a home base from which the company can increase its involvement in local industry organisations and groups catering to entrepreneurs, as well as boost its interactions with early-stage companies, universities and private research centres.

J&J's worldwide chairman for pharmaceuticals and new chief scientific officer Paul Stoffels said in a company statement that "our goal is to have continuous access to the best science and technology in the world."

In addition to supporting organisations like the trade group Biocom, Janssen Labs in San Diego has hosted events at its local incubator that are designed to offer valuable insights into venture capital financing, Big Pharma partnerships and other matters that may seem mysterious to biotech entrepreneurs (scripintelligence.com, 29 June 2012).

"Once there's trust and a personal connection, a lot of doors open. You become the first person they come to when they need something," Dr Miralles said.

Also looking to establish relationships with researchers and entrepreneurs, Merck announced in March that it will spend up to $90 million over seven years to fund the California Institute for Biomedical Research (Calibr) in San Diego, a non-profit organisation designed to translate basic research from universities and other institutions into new drugs (scripintelligence.com, 16 March 2012).

Merck has an option to review compounds supported by Calibr before they are offered to other potential buyers or licensees.

Similarly, Dr Miralles said of Janssen Labs: "We love to play a role as a facilitator. Whatever benefits the biotech community ultimately will help the pharmaceutical sector."