JJDC 2021 Annual Newsletter

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Chris Dear Partners & Colleagues,

The past year continued to test us individually and collectively as the global pandemic impacted our society in ways large and small. 2021 was also a year when the global science and innovation community continued to respond to historic challenges and demonstrated our collective resilience, adaptability, creativity and strength of common purpose.
As part of Johnson & Johnson Innovation (JJI), the mission of JJDC is to invest and support the global entrepreneurial community to solve our toughest healthcare challenges. I am proud to say that throughout this unpredictable year, JJDC not only met the moment but achieved significant milestones and continued to help our portfolio companies on the journey to bring transformational innovation to people around the world.

One example of this is the addition of talented new investors to our already diverse team. These extraordinary individuals, who you will meet in the pages to follow, bring a wide variety of skill sets to the companies we invest in, from supply, manufacturing, sales and marketing, and R&D know-how to deep financial, business and customer knowledge.

Also this year, we unveiled New Company (NewCo) Creation – a distinct capability within our JJI toolkit. 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.

In this newsletter, we highlight some of the key trends and developments that our industry is witnessing, such as the increase of biotech IPOs. We are also pleased to highlight several JJDC portfolio companies that are advancing innovation for patients and consumers around the world in meaningful ways.

Despite the ongoing challenges of the pandemic, science and innovation have continued to march forward. As we turn the page to 2022, I am energized to know that our JJDC team and the Johnson & Johnson Family of Companies will continue in our commitment to invest in and support new ideas to bring better health to everyone, everywhere. By working together and harnessing our diverse strengths, we will succeed in delivering the next wave of innovation that will change the trajectory of human health.

Happy New Year Everyone!
Signature
Chris Picariello
President, Johnson & Johnson Innovation – JJDC, Inc.
Meet Our New Team Members
Seav Sean Evans
Associate, Venture Investments
Brian Brian Imszennik
Director, Venture Investments
Sanjay Sanjay Mistry
Vice President, Venture Investments, New Company Creation
Nancy Nancy Ondovik
Senior Director, New Company Creation
Hirak Hirak Parikh
Associate, Venture Investments
Andres Tellez Andres Tellez
Senior Director, NewCo Development
Debi Watson Debi Watson
Vice President, Venture Investments
2021 by the Numbers
#1 Healthcare venture*
*According to PitchBook search of CVC investors’ # of disclosed healthcare investments from Jan 1, 2021 – Dec 31, 2021
56
New/Follow-on investments
 
7
Onboardings
*Includes both acquisition and
BD deals with J&J entities
13
Exits
(M&A, IPO)
 
>US$175M

Capital Deployed
48
Year Legacy
156 Active portfolio companies
in 3 sectors (Pharm, MedTech, Consumer Health)
Fueling Early-Stage Innovation
in the Time of COVID-19
Over the past two years, the eyes of the world have remained intensely focused on the global COVID-19 pandemic. The unprecedented size and scale of the challenge called upon the best scientific minds from around the world to come together to rapidly develop solutions.

While Johnson & Johnson is proud to have joined the fight against the pandemic on many fronts in a year dominated by COVID-related challenges, we have also remained steadfast in our mission to innovate, discover, partner and translate ideas into solutions that meet patient needs despite the historic obstacles presented by the pandemic.

One such example is Mestag Therapeutics, a company founded in 2020 with the mission to develop impactful new medicines for patients by targeting discrete fibroblast sub-populations implicated in disease and to better understand how they influence immune cells. Mestag is progressing a pipeline of first-in-class therapeutics to interrupt fibroblast-mediated effects on immune cells in inflammatory disease and cancer. The company was recently recognized by Fierce Biotech on the 2021 Fierce 15 List of innovative new companies.

Mestag's approach aligns with the strategic interests of J&J's immunology therapeutic area and its Tissue Mechanisms pillar (specifically, the stromal-immune axis). It is this interest which motivated JJDC's investment in Mestag. In May of 2021, Mestag and Janssen Biotech announced a target discovery, option and license agreement under which Mestag would interrogate fibroblast subpopulations across diseases and their interactions with key aspects of the immune system. The research would leverage Mestag's specialist fibroblast subpopulation biology platform and state-of-the-art data analytics to identify novel therapeutic targets.
image Recently, JJDC's Fiona MacLaughlin spoke to Mestag Therapeutics CEO Susan Hill about the genesis of this exciting collaboration and what's ahead
Throughout the year, the JJDC team worked with multiple partners across medical devices, consumer health and pharmaceuticals to continue to move promising innovative ideas forward. Here are a few snapshots:
Reflexion RefleXion is a therapeutic oncology company that uses injected radiotracers to reveal the location of tumors and then immediately deliver ablative radiation.
Known as biology-guided radiotherapy (BgRT), the U.S. Food & Drug Administration (FDA) granted BgRT Breakthrough Device designation for this unique approach to treating lung cancer and metastatic lung tumors in November 2021. BgRT overcomes the limitations of current radiotherapy by managing tumor motion with unprecedented accuracy, with a vision of one day treating multiple tumors in a single session, thereby transforming radiotherapy from an early-stage treatment into one suitable for metastatic disease. RefleXion is currently cleared for image-guided radiotherapy and has delivered over 1200 fractions at several clinical institutions in the U.S. The company is completing a clinical study to support its application for de novo clearance of BgRT.
onl image ONL Therapeutics is a biopharmaceutical company developing novel therapies for protecting the vision of patients with retinal disease.
By advancing a novel breakthrough technology designed to protect key retinal cells from Fas-mediated cell death, ONL is pioneering an entirely new approach to preserving vision. In December of 2020, JJDC participated in the company's US$46.9M Series B Preferred Stock financing round. Clinical trial plans for the company's lead compound are focused on the acute indication of retinal detachment along with the chronic conditions of open angle glaucoma and age-related macular degeneration. Preclinical work continues to enable clinical trials in other disease indications including inherited retinal degeneration (IRD; also known as retinitis pigmentosa).
Procept PROCEPT BioRobotics PROCEPT is a surgical robotics company focused on advancing patient care by developing transformative solutions in urology.
PROCEPT develops, manufactures and sells the AquaBeam Robotic System, an advanced, image-guided, surgical robotic system for use in minimally invasive urologic surgery with an initial focus on treating benign prostatic hyperplasia, or BPH. BPH is the most common prostate disease and impacts approximately 40 million men in the United States alone. PROCEPT designed Aquablation therapy to deliver effective, safe and durable outcomes for males suffering from lower urinary tract symptoms due to BPH that are independent of prostate size and shape or surgeon experience. PROCEPT has developed a significant and growing body of clinical evidence, which includes nine clinical studies and over 100 peer-reviewed publications, supporting the benefits and clinical advantages of Aquablation therapy. Procept completed its IPO and listed on NASDAQ in September and raised approximately US$172.4M in net proceeds.
Iterative Iterative Scopes is building a powerful set of proprietary artificial intelligence (AI)-driven computational tools to identify appropriate treatments and guide clinical trials for patients suffering from gastrointestinal diseases.
In August of 2021, the company announced a US$30M Series A financing with participation from JJDC. In September of 2021, Iterative Scopes then announced a partnership with the Crohn's & Colitis Foundation to incorporate the Foundation's comprehensive repository of data on the patient journey into Iterative’s next-generation endoscopic tools.
Datavant Datavant connects healthcare data via tokenization to eliminate the silos of healthcare information that hold back innovative medical research and improved patient care.
The company helps data owners manage the privacy, security, compliance, and trust required to enable safe data sharing. In June 2021, Datavant merged with Ciox in a US$7.0B transaction that included a substantial new financing.
Paige Paige provides AI-based digital diagnostics products to assist pathologists in making informed and efficient diagnoses, as well as to assist pharmaceutical companies improve clinical trials outcomes.
In the first quarter of 2021, Paige completed a US$125M Series C financing co-led by JJDC. In September of 2021, Paige announced that the FDA had granted de novo marketing authorization for Paige Prostate, a clinical-grade AI solution for prostate cancer detection. Paige Prostate is the first AI-based pathology product to receive de novo approval from the FDA.
IPOs on the Rise for Life Sciences and Biotech
In a year that saw tremendous uncertainty and volatility across the global economy, the biotech and life science fields were a bright spot of optimism and aspiration as our industry saw record-setting Initial Public Offerings (IPOs) in 2021. The pandemic has undoubtably proven to the world the value of science and innovation. Several JJDC portfolio companies closed IPOs in 2021, and JJDC is proud to have had a role in their success.
var Vor Biopharma, a clinical-stage cell and genome engineering company that aims to change the standard of care for patients with blood cancers by engineering hematopoietic stem cells to enable targeted therapies post-transplant,
closed a US$203.4M IPO in February of 2021. JJDC invested in Vor's Series A-2 and Series B financings in 2019 and 2020 respectively. In July 2021, Vor and Janssen Biotech announced a preclinical research collaboration to continue to explore the potential of Vor’s platform in combination with a Janssen bispecific antibody for the treatment of patients with acute myeloid leukemia (AML).
CVRX CVRx, a commercial-stage medical device company focused on developing, manufacturing, and commercializing innovative and minimally invasive neuromodulation solutions for patients with cardiovascular diseases, closed its IPO in
June of 2021 at US$144.9M. JJDC's collaboration with CVRx began in 2007 when JJDC led a US$65M venture financing round for the company. JJDC continued to support the company through subsequent financings including leading a US$93M series G in 2016 that enabled the company to progress its pivotal clinical trial in the U.S. to treat patients with congestive heart failure. CVRx's key technology, Barostim Therapy, received premarket approval from the U.S. Food and Drug Administration (FDA) as a "breakthrough" device in 2019, making it the first FDA-approved medical device using neuromodulation to improve the symptoms of patients suffering from systolic heart failure. In December 2020, the Centers for Medicare and Medicaid Services (CMS) granted approval for a transitional pass-through (TPT) payment for Barostim, which is intended to facilitate the use of newly FDA-approved medical devices, drugs, and biologics to boost Medicare patients' access to innovative technologies like Barostim.
Cue Cue Health, a healthcare technology company, went public in September of 2021 with an IPO raise of $200 million. Cue's relationship with Johnson & Johnson Innovation began in 2015 when the companies partnered on an initiative to address significant global health needs for fast, portable, easy-to-use molecular testing solutions. JJDC then co-led Cue's Series B and participated in Cue's Series C funding rounds in 2018 and 2020, respectively.
At the start of the pandemic, Cue successfully developed and recieved FDA EUA Authorization for its Cue COVID-19 point-of-care and at-home molecular test that is highly-accurate, fast and reliable. Today, Cue continues to develop a range of molecular point-of-care and at-home diagnostic tests for other viruses and non-viral pathogens, commissioning a new era in healthcare that is powered by a connected and distributed care ecosystem.
JJDC's New Company Creation:
Addressing unmet patient needs,
one newly launched company at a time
JJDC has always believed that the best ideas can come from anywhere in the world. But, when our team of innovators sees an unmet patient need that does not currently have the support of a formalized company behind it, we set out to create one.

This year, JJDC unveiled our New Company (NewCo) Creation capability. NewCo Creation identifies the needs and gaps in the market that are not being addressed for patients around the world and brings together the expertise, resources and reach to cultivate and validate the science, technology and business models and create new therapeutic options – one newly formed company at a time.
sanjay mistry This past year, we were very proud to establish a new team within JJDC as a dedicated resource to drive NewCo Creation’s growth moving forward. Led by Sanjay Mistry, Vice President, Johnson & Johnson Innovation, this extraordinary group includes Brit Sabbah, Brian Imszennik, Andres Tellez and Nancy Ondovik.
An outstanding example of the variety of our NewCo Creation capabilities can be found in the "Build-to-Buy" model facilitated by JJDC's initial investment, and culminating in J&J's acquisition of the Israeli start-up company OrthoSpin Ltd.

OrthoSpin developed and manufactures a first-of-its kind technology – an automated strut system – which is used in conjunction with DePuy Synthes MAXFRAME™ Multi-Axial Correction System, an external ring fixation system. Ring fixation systems are a common treatment for correcting complex bone deformities, bone lengthening, setting complex fractures, and addressing issues such as nonunion. Currently, treatment necessitates manual strut adjustments by patients and caregivers daily. With this cutting-edge technology, strut adjustments are automated and may enhance the patient experience, potentially reducing the risk of negative clinical outcomes caused by unintended strut adjustment errors.

In January of 2021, OrthoSpin received 510(k) clearance from U.S. FDA for its 2nd generation of the AutoStrut device and has now completed initial clinical cases in the U.S. and Israel. In November 2021, DePuy Synthes acquired the company.

This tremendous achievement was made possible in part by JJDC-led rounds of investments to provide not only critical capital, but also a connection to the expertise and network within Johnson & Johnson, as well as the work of our colleagues in Medical Devices Business Development on the successful acquisition of the company. As a result, OrthoSpin was able to build a technology with a value proposition that is not only unique, but also fits DePuy Synthes' strategic vision to Keep People Moving along with its strategic digital technology in the market.

A collaboration which began years ago now stands as a compelling testament to the strength of our global capabilities and creative "Build-to-Buy" model for fueling early-stage innovation.
Our Commitment to Diversity,
Equity and Inclusion
Throughout 2021, JJDC continued to work on advancing diversity and inclusion within our own team as well as externally.

One example is our sponsorship of scholarships for aspiring VC investors from underrepresented backgrounds in this year's cohort of VC University Online. This scholarship cohort includes a life science track which provides sector-specific education, mentorship, and networking to the next generation of life science VC investors.
As another example, in March 2021, JJDC led Series A funding for Infinite Looks to help the company scale its direct-to-consumer Sunday II Sunday offering, a luxury hair care product line that addresses the specific hair care needs of the active black community – a market that has been traditionally overlooked.
Founder Keenan Beasley spoke about his inspiration and insights during Johnson & Johnson`s Eureka Moments program. Keenan
Stay Connected in 2022
Team
jjdc.com
info-JJDC@its.jnj.com
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