The prospective tenant companies will range from self-funded, seed-stage startups to venture capital-backed companies to live in the incubator. Incubators are becoming much more popular and have existed in countries outside the US a bit longer with Israel being one prime example of using the incubator business model. I heard a lot about their processes when I attended the Israel Convention this year. The company featured at the post below came out of Microsoft’s center in Israel. That was a very good conference and I spoke to a lot of people to include Ilan Spillinger who brought Kinect to Microsoft.
Physical Virtue Solution To Assess and Train Neck Disorders, Microsoft Kinect And More As Shown This Week at the Israel Conference
Johnson and Johnson’s own R and D center is also to become part of the Janssen group. There’s not a lot of money being invested in biotech companies when you compare it to those chasing the social algorithms out there, which is like totally over valued and over priced. At least with a biotech company you get something more than social algorithms and a drug or device that may save lives or cure diseases. I rant about that quite a bit as the US tries to base their economy on intangible over rates social algorithms, inflated by our “buddies” the banks as they want to create financial algorithms to market the social algorithms, a vicious circle. All you have is algorithms with social networks and some big file servers somewhere, nothing one can hold in their hand or use to cure them from a deadly disease, although they create addictive diseases of their own:) I don’t say they have a place but gee whiz this is way over rated in value and coders get super rich writing this aggregated stuff. I use it and they deserve to make a profit but we are off balanced here.
J&J has been already been hosting monthly meetings of the San Diego Entrepreneurs Exchange (SDEE), a group of biotech, health IT, and medical device entrepreneurs to build up interest. One other competitor entering the field too is the insurance industry, think I am kidding then read the link below as they may be in contention to buy up small biotech and device companies, well kind of like the one distributorship/subsidiary they just created. We have cheap hearing aids so what’s next, cheap……
United HealthCare Gets In the Medical Device Business–Distributing Cheap Hearing Aides Sold Via Hi HealthInnovations Division –Subsidiary Watch
They also have subsidiaries that can take a drug or device from start at the FDA all the way to finish to include MD reimbursement, so another good reason for J and J to be on the move in the incubator business.
United Healthcare (Optum) Owns A Consulting Firm for FDA Drug and Device Approvals, Clinical Trials–CanReg - Subsidiary Watch
The Innovation center, Janssen Labs is due to open sometime in the first quarter of 2012 and I would guess they are opening taking applications at present. BD
In a bid to foster life sciences startups, Johnson & Johnson is refurbishing part of its pharmaceutical research and development facility in San Diego to create an “innovation center” for new biotech and health IT companies.
The New Jersey pharmaceutical and healthcare giant anticipates housing from 18 to 20 life sciences startups in the new center, to be called “Janssen Labs at San Diego.” (The name anticipates an internal reorganization that has been consolidating Ortho-McNeil and other J&J pharmaceutical businesses for much of the past year under the Janssen brand.) J&J’s pharmaceutical R&D center, which employs about 300 in San Diego, is slated to officially become part of the Janssen group later this year.
“It’s a completely ‘no-strings attached’ business model,” says Miralles. He estimates the innovation center will occupy about 35,000 square feet, and consist of “modular and flexible” offices available for startups developing mostly biotech and health IT-related technologies. The companies would share a common space designated for high-end research equipment, such as mass spectrometers and flow cytometers, as well as copy machines, office supplies, and other tools. “There is no quid pro quo. None,” Miralles says. “Entrepreneurs like to be free.”