Look Inside Johnson & Johnson’s ‘No Strings’ Startup Space

We got access to JLABS, the biotech incubator that’s shaken up the industry

Johnson & Johnson has been a stalwart of health care and consumer goods for more than a century, but its rank as a Fortune 500 company hasn’t stopped it from reinvention.

In 2011, changes in the company’s pharmaceutical division left its 300,000-square-foot San Diego R&D facility with vacant offices. Instead of moving more employees in, it saw an opportunity to try a radical idea, and devoted the extra space to a pilot program it had been considering: an in-house biotech incubator, with no strings attached. Called JLabs, it was a pioneer among such programs. Startups developing new cancer treatments or wireless health care devices get to lease the lab equipment they need, without having to turn over any stake in their business.

Why would such a large corporation, especially in a complex industry flush with intellectual property laws, give anyone a leg up?

“Our commitment is to help accelerate the rate at which lifesaving medicines and technologies move from bench to bedside and into the hands of patients who need them,” says Kara Bortone, director of venture sourcing and development at JLabs. “The advancement of a JLabs company, whether they partner with Johnson & Johnson or another health care company, is a success for the industry overall.”

Following its San Diego launch, JLabs now operates seven incubators in the United States and Canada, housing 147 startups.

Access to most of JLabs is normally restricted, but we were allowed a peek inside its flagship office.

Commingling: JLabs takes up 40,000 square feet within the Johnson & Johnson facility in Torrey Pines. Startups can meet with J&J staff, who offer advice, mentorship, and connections.
Getting Social: After working in the lab all day, scientists can relax on a spacious patio and deck that overlook a canyon and the I-5. Tenants also get access to JLabs-hosted happy hours, quarterly lunches, sports game nights, and holiday gatherings.
Rent: Startups can rent as little or as much square footage as they need, from a bench in shared lab space for around $1,000 a month, to office suites. That’s a deal compared to paying $5 to $10 million for a small lab on one’s own.
Applied Science: Lynda Groocock, a molecular biologist with Abilita Bio, isolates DNA from cell cultures for drug development research. Abilita Bio is one of 40 startups housed at JLabs San Diego, which get access to research equipment and administrative help.
Creative Space: Bright colors and artwork fill the hallways, offices, and common areas at JLabs, giving them a startup aesthetic instead of a medical building’s sterility. Interested in visiting? Check jlabs.jnjinnovation.com for public pitching and networking events.
Success Stories: Many companies “graduate” from JLabs and go on to big-name partnerships. Arcturus Therapeutics, a local company that invented a treatment for hepatitis B, signed $2 billion in licensing agreements after leaving the incubator.