Johnson & Johnson Email Newsletter: JLABS Companies were a big deal in 2023 (February 27, 2024)

JLABS Companies were a big deal in 2023

From new funding to major milestones, JLABS companies aren’t slowing down!

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JLABS

Companies
brief

Dear Wells,

In a year marked by significant challenges and unprecedented growth, JLABS companies have emerged as global leaders in life science innovation. Despite a challenging funding environment, our current and alumni resident companies have collectively secured a staggering $29 billion in exits, collaborations, and funding in 2023 alone.

This record-breaking performance represents more than 28 percent of total JLABS companies' funding since our inception, highlighting the incredible potential of these innovative companies.

This success was driven by some of the key trends we observed within the sector in 2023. Large-cap pharma companies pursued small and midsize biotechs to fill pipeline gaps in key areas where we are focused like oncology and immunology and collectively the sector is interested in innovative technologies and precision medicine more than ever before.

From major acquisitions worth $20 billion, to collaborations valued at $7 billion and financings totaling $2 billion (including secured and contingent funding), JLABS companies are not just surviving – they're thriving and driving the future of healthcare innovation.

As we move into 2024, we expect these trends to continue, fueled by factors such as the anticipated reopening of the IPO market, increasing interest rates, and the continuous advancement of technology. We anticipate that M&A and divestitures will remain the prevailing exit strategy and capital-raising mechanism for biopharma.

In this brief, we'll spotlight some of the biggest deals of 2023, and provide insights into the trends shaping the biotech sector in 2024.

Read on to discover how JLABS companies are making a difference and how you can get involved.

Deal spotlights

In 2023, our portfolio companies made significant strides in a number of sectors of life science innovation. Here are some standout deals that not only demonstrate the growth potential of these companies but also highlight some of the key focus areas attracting major investments in 2023:

		Prometheus Biosciences, Pharmaceuticals, Immunology
		Acquired by Merck Prometheus Biosciences' expertise in developing targeted therapies for immune-mediated diseases helps strengthen Merck's pipeline. The acquisition underscores the interest in immunology research & development and the potential of precision therapeutics to transform patient care.

		Mirati Therapeutics, Pharmaceuticals, Oncology
		Acquired by Bristol-Myers Squibb With Mirati Therapeutics’ focus on developing innovative targeted cancer treatments, this acquisition showcases the increasing value placed on novel approaches in oncology as large cap pharmaceutical companies like Bristol-Myers Squibb invest to broaden their pipelines.

		POINT Biopharma Global, Pharmaceuticals, Oncology
		Acquired by Eli Lilly POINT Biopharma Global's pioneering work in developing targeted radiotherapies aligns with Eli Lilly's strategic focus on oncology. This deal underscores the growing recognition of the potential of radiopharmaceuticals in cancer treatment and the trend toward investing in new areas of innovative medicine.

		Imago BioSciences, Pharmaceuticals, Oncology
		Acquired by Merck Imago BioSciences' unique approach to developing therapies targeting cancer stem cells complements Merck's existing oncology portfolio. This deal reinforces the increasing focus on targeting the root causes of cancer and signifies a trend towards investments in innovative therapeutic strategies.

		DTx Pharma, Pharmaceuticals, Platform
		Acquired by Novartis DTx Pharma's unique fatty acid delivery technology platform has the potential to unlock new therapeutic options across multiple disease areas. This deal highlights the growing interest in novel drug delivery systems and represents a trend towards investments in platforms that can accelerate the development of more effective treatments.

		4D Molecular Therapeutics, Pharmaceuticals, Platform
		Collaboration with Astellas 4D Molecular Therapeutics' proprietary AAV vector technology platform has the potential to revolutionize treatment options in this field. This partnership provides a great example of the growing trend of collaborations to leverage innovative platforms to further accelerate the development of targeted therapies.

2024 outlook

As we move into 2024, several trends are poised to shape the future of life science innovation. We're not just watching these trends - we're at the forefront, driving them forward.

Here's what we see on the horizon and how we're positioning our portfolio companies for success:

Diversifying to Drive Growth: Small and midsize biotech companies that can fill in pipeline gaps will receive significant attention in 2024, though headwinds with rising interest rates mean these companies must be armed with robust data and cutting-edge solutions.
Rise of the Machines: The continuous advancement of technology is revolutionizing healthcare. While the technology and applications of AI are still in their infancy, its potential benefits—such as making drug discovery and development faster and cheaper or helping to identify new targets beyond the reach of traditional methods—are significant. This, along with developments in Big Data analytics and wearable devices, is opening doors for entrepreneurs to develop cutting-edge solutions.
The Power of Partners: Beyond outright acquisitions, in 2024 we expect that many companies will explore the use of partnerships and joint ventures to achieve their growth and transformation goals. We understand the power of collaboration and are committed to fostering strategic partnerships that can accelerate the growth of our JLABS companies and drive the future of healthcare innovation.

Being at the center of many of these trends in healthcare innovation, we understand what it takes to succeed in this ever-changing environment and we are looking forward to another successful year for JLABS companies.

Stay tuned for updates on new startups, upcoming IPOs, and potential acquisitions within our portfolio.


	JLABS Companies Are Making An Impact!¹ ¹

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¹ Including JLABS resident and virtual companies, alumni companies, and QuickFire Challenges awardees
since inception | ² Including IPOs and Reverse Mergers | ³ Including deals and funding dollars that JLABS
aggregates via public information, company self-reporting and internal information | ⁴ % any company with a women at the C-Level including Co-Founder | ⁵ % individuals that self-identify as racially and ethically diverse in the United States.

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