Johnson & Johnson pivots earlier stage, reflected in the NewCo Creation unit it set up.
Johnson & Johnson Innovation (JJI), the corporate venturing unit of US-listed healthcare provider Johnson & Johnson, has revealed more details on its New Company (NewCo) Creation team set up last year.
Sanjay Mistry has been made vice-president for venture investments and NewCo Creation, with Nancy Ondovik and Andres Tellez as senior directors and Brian Imszennik a director for NewCo.
Chris Picariello, president for JJI (pictured), which also oversees its Development Corporation (JJDC) for venture capital investments, in its annual review published this month said: “NewCo Creation will work with colleagues across Johnson & Johnson and the broader life science ecosystem to create and launch innovative solutions to meet critical unmet needs – one newly formed company at a time.”
He said one example of NewCo Creation capabilities had been found in the “Build-to-Buy” model facilitated by JJDC’s initial investment in Israel-based startup OrthoSpin, which culminated in J&J’s acquisition through its DePuy Synthes orthopaedics subsidiary for $79.5m in November.
JJI had 13 exits last year, up more than 50% from the eight flotations or trade sales delivered in 2020, and excluding seven so-called onboardings (business development deals or acquisitions between the corporations and portfolio companies) in 2021 versus four the year before.
As one of the most experienced CVC units with nearly 50 years history, however, J&J reduced its capital deployed in new and follow-on deals to about $175m compared to more than $500m in 2020.
The pivot earlier stage, reflected in the NewCo Creation unit, saw J&J back more companies – 56 compared to more than 40 in 2020 – but with a lower average investment, according to its annual report.
This meant its overall portfolio continued to grow to 156 active companies at the end of December, compared to 130-plus in 2020’s annual review, concentrated in pharma, medtech and consumer.
