Johnson & Johnson (NYSE:JNJ) said today that it inked a deal to join the NXT Biomedical therapeutic device incubator, gaining the right to migrate select projects from the incubator to its J&J medical devices companies.
The Irvine, Calif.-based incubator was founded by medtech pioneer Stanton Rowe and investment firm Deerfield Management last September, and aimed to invest in “cutting-edge technologies” designed to address unmet needs.
As a key member of the incubator, J&J’s Innovation arm will have the ability to move strategically aligned projects within the accelerator to J&J medical device companies for continued development at the Center for Device Innovation at the Texas Medical Center.
“The CDI @ TMC model was created to enhance early-stage internal and external medical device innovation. Our collaboration with NXT Biomedical has the potential to further strengthen the CDI @ TMC pipeline with validated science coming through the NXT incubator, and to ensure that jointly we deliver best-in-class medical device innovation to patients around the world,” J&J Innovation global head Dr. William Hait said in a press release.
NXT Biomedical said that it expects to invest up to $25 million in new medical technologies over the next five years, with supporting firm Deerfield Management allotting an additional $250 million for the formation and development of up to 8 startups that emerge from the incubator.
“Through this strategic partnership with NXT Biomedical and Deerfield, we are creating a novel approach to the external funding of projects at CDI @ TMC. This will enhance our medical device pipeline and is an example of the industry-leading collaborations Johnson & Johnson Innovation is forging to secure funding for early-stage innovation,” J&J Innovation medical devices VP Dr. Bruce Rosengard said in a prepared statement.