Inside Johnson & Johnson's JLABS Incubator in Torrey Pines San Diego
Learn how this top incubator is helping nurture the next generation of biotech startups
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If you look at the origins of some of today’s San Diego fast-growing biotech startups today, chances they have been through Johnson & Johnson JLABS, a renowned life science-focused incubator based in the heart of Torrey Pines Mesa surrounded by some of the brightest minds in the life science industry.
“Having been established for over a decade (since 2012), JLABS has a deep and longstanding understanding of entrepreneurs across the pharmaceutical and medtech sectors,” said Nick Mourlas, head of JLABS San Diego, who moved to San Diego from Menlo Park three years ago.
Mourlas is himself a veteran of the life science industry. A serial entrepreneur, he co-founded multiple companies including Acumen Medical, Siris Medical, and Akros Medical, before taking a leadership role at Xerox’s Innovation Group focused on healthcare. More recently, he was senior director of New Ventures at Johnson & Johnson (J&J). He was recruited to head up the JLABS’ San Diego program, which is meant to foster research & development collaborations as well as equity investments with promising biotechnology startups.
Mourlas is familiar with the struggles of the life sciences industry, including the cost of discovering and developing new drugs, high trial failure rates and the cost of lab space in the area. Through JLABS, he has the opportunity to help entrepreneurs improve their probability of success.
“It’s a real pleasure and privilege to interact with early-stage founders,” Mourlas explained to me at a coffee shop in La Jolla. “We can help companies in several ways, whether that's lending an understanding ear, providing practical guidance and advice, as well connecting them to people in our network depending on what they need.”
Founding Story
Johnson & Johnson (J&J), is a 138-year-old leading pharmaceutical company, engaged in the research and development, manufacture and sale of products in the healthcare industry.
In 2012, it debuted its JLABS flagship location in San Diego, with the goal of helping the healthcare giant source promising companies and talent.
JLABS has since expanded to 11 locations, providing capital-efficient lab space and offices in major biotech hubs ranging from San Francisco to Boston to New York.
"The JLABS San Diego Team is deeply experienced, with most team members in their roles for 5+ years and half of our global leadership team on site," said Mourlas.
Since its inception, the incubator network of Johnson & Johnson has championed hundreds of budding biotech companies across four strategic areas including consumer health, pharmaceuticals, medical devices and digital health.
“For companies not located near one of our eleven (11) global locations, we offer JLABS virtual residency. As part of our virtual offering, companies receive full virtual access to our JLABS programming, including personalized support from J&J’s global network of experts and innovators,” said Mourlas.
Driving Impact in San Diego and Beyond
JLABS has inked more than 300 strategic partnerships with its alumni worldwide.
In San Diego, more than 190 biotech companies have incubated at JLABS.
"Our #1 source of new JLABS companies is referrals from JLABS residents and Alumni,” said Mourlas. “In terms of exposure to leadership — we have had senior leaders like Joaquin Duato our CEO, and John Reed the Head of Innovative Medicine R&D tour and meet with select JLABS residents.”
The incubator site is a 40,000-square-foot laboratory co-working space in the Torrey Pines Area, and currently houses more than a half a dozen startups including Sinopia Biosciences, Papillon Therapeutics, and Degron Therapeutics.
Notable San Diego-based companies that have participated in JLABS include Poseida Therapeutics (acquired for $1.5B), Omniome (acquired for $800M), and HAYA Therapeutics ($1B deal with Eli Lilly), to name a few.
“To date, we have more than 1000+ JLABS portfolio (resident and alumni) companies throughout APAC, North America and EMEA regions working across the pharma and medtech sectors,” said Mourlas.
From Seed to Series A to IPO
JLABS is well-positioned to support companies that have recently raised grant funding or closed friends and family financing, who are seeking to progress to the Series A funding milestone.
“Tempo Therapeutics had been supported with grant and Friends & Family money when they joined JLABS,” said Mourlas, and then we stayed close to their development eventually leading to Johnson & Johnson’s corporate venture capital arm, JJDC co-leading their Series A round.”
“Westbrook Weaver is a stellar first time CEO,” said Mourlas. “They had been supported with grant and Friends & Family money when they joined JLABS, and then we stayed close to their development eventually leading to JJDC co-leading their Series A round.”
As they develop, companies are also paired with a mentor to help them bring their ideas to commercialization. “The program is also ideal for well funded start-ups that want to move quickly while their permanent home is being built,” said Mourlas.
La Jolla-based Rapport therapeutics was also set up by JJDC and Third Rock Ventures beginning with $100 million in capital.
“They started at JLABS getting experiments up and running 2 years ago, eventually moving into their new space once it was ready,” said Mourlas. “They just closed a $174M IPO in June of this year.”
Perspective on San Diego
“There are several great features about the local ecosystem,” said Mourlas. “There were a few big exits in 2023. A number of those former team members are now founding new companies, which is helping keep jobs and talent in San Diego.”
Mourlas also noted that research centers including UC San Diego, Scripps, Salk, Sanford Burnham and San Diego State University are fantastic for helping nurture the next generation of smart talent as well as developing new therapies.
San Diego is also home to several biotech incubators in San Diego including Lilly’s Getway Labs, LabFellows, Avalon BioVentures, and Aquillius, among others.
For companies interested in becoming a JLABS resident, you can apply here.