Johnson & Johnson extends its JLABS network of incubators to MaRS

A boost to Toronto life sciences research

Johnson & Johnson is aiming to tap in to life sciences research in the Toronto region and beyond with the creation of a new incubator in the MaRS complex, aided by $19.6 million from the Ontario government. Slated to open in early 2016, JLABS@Toronto is the first expansion of J&J's network of innovation research centres outside of the US and a testament to the Toronto area's deep life sciences research and expertise.

JLABS@Toronto can accommodate up to 50 companies in a space of approximately 4,000-sq-m on the fourth floor of MaRS' west tower, which has experienced difficulty finding suitable tenants, prompting the provincial government to take over much of the space.

Earlier this month, the Univ of Toronto announced it had taken a 20% equity stake in the tower and is looking towards J&J and others to attract promising young companies to the facility. acquiring four floors (one of which will be occupied by JLABS.

Ontario's financial support of JLABS to outfit the west tower space is drawn from the Jobs and Prosperity Fund of the Ontario Ministry of Economic Development, Employment and Infrastructure.

The JLABS network is yet another manifestation of the longstanding trend of large pharmaceutical firms reaching out externally to source promising research. In the case of J&J, it is seeking to feed diversified pipelines in the firm's main business lines: pharmaceuticals (through its Jansen Pharmaceuticals Inc division), medical and consumer products.

"Great science is outside the walls of companies. We want to take down the hurdles. We locally embed in innovation in clusters around the world and catalyze with resources," says Melinda Richter, head of Johnson & Johnson JLABS. "Our model is no strings attached. Companies pay for their play and each company's needs are different."

JLABS@Toronto hopes to have several companies lined up prior to opening. It is planning a suite of educational and networking events. Richter says J&J has a graduated time horizon for achieving certain levels of occupancy and aims to attract a cross-section of firms aligned with its business lines. About three quarters of its space will be dedicated to laboratories, digital equipment and bench tops with the remainder available for collaborative and meeting spaces to encourage interaction with industry mentors and potential investors.

"We first met with our local ecosystem (and) were blown away with what Toronto had to offer," says Richter, a Canadian by birth and founder and CEO of San Francisco-based Prescience International — a firm that helps start-ups launch and scale. "A lot of people don't know how deep that expertise is. Johnson & Johnson adds a new dimension and will shine a light on Toronto."

Richter adds that J&J's other JLABS have achieved high occupancy levels by attracting firms and talent with futuristic designs and a mission to inspire youth to embrace and stay in science. JLABS also offers a rich ecosystem through the J&J family of companies that attracts both scientists and entrepreneurs.

"All of our JLABS are connected to venture capital and science," says Richter. "Science should be liberated. It's a matter of connecting to the right talent pool."

Opportunities for MaRS Innovation

For MaRS Innovation, the arrival of JLABS is a welcome development for the technologies and companies it represents. A Centre of Excellence for Commercialization and Research, MaRS Innovation has launched more than 100 commercialization projects based on technologies emanating from the three Toronto universities and nine research-intensive hospitals it represents. Its efforts have already led to 40 start-up companies, 30 of which are in the life sciences field.

"JLABS is important for our tenants and MaRS Innovation's companies will benefit. All global companies are struggling with the issue of how to refill the pipeline by virtue of minimizing the risk," says Dr Rafi Hofstein, MaRS Innovation's president and CEO. "Our companies are all within the spectrum of interest of Johnson and Johnson ... They came to us and said they believed a lab and incubator in Toronto would have a huge impact on the region's technologies and new companies,"

Hofstein adds that with a company the size and diversity of J&J, JLABS will help small companies navigate its labyrinth of interconnected firms and activities, while finding the best the Toronto region has to offer. He notes that the incubator's open innovation model means that other firms can take advantage of J&J's incubation efforts.

Hofstein says JLABS represents a conduit for connecting industry and customer needs with the best research solutions, making its relationship with MaRS Innovation a powerful combination.

"For J&J, this is a dynamic way to have a close look at technologies as they are being developed. It's a creative way for risk mitigation," he says. "People in the academic arena are beginning to understand they have to tweak their approach from research to translational research. It's an ideological shift — a paradigm shift from push to pull — and MaRS Innovation has been assigned to move new ideas up the ladder ... We manage to bring the global industry to our community and J&J is an example but there are definitely more big collaborations to come."

For the Univ of Toronto, acquiring an equity stake in the MaRS west tower alleviates a serious shortage of research space. JLABS' decision to locate in the MaRS west tower also bolsters U of T's own suite of incubators while providing much needed new laboratory space for its researchers. U of T's nine incubators under the umbrella Banting & Best Centre for Invocation & Entrepreneurship umbrella are currently relocating to the west tower.

The university is familiar with J&J, having launched Neuroscience Catalyst, an open source collaboration with U of T's Centre for Collaborative Drug Research. The university is hoping to benefit from J&J's expertise in screening, medicinal chemistry and working with large libraries of compounds.

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