Johnson & Johnson Invests in Medical-Device Incubator

   By Micah Maidenberg

A Johnson & Johnson (JNJ) unit focused on emerging-healthcare technologies has agreed to invest in an incubator focused on medical devices.

The unit, Johnson & Johnson Innovation LLC, made a strategic investment in the NXT Biomedical Therapeutic Device Incubator, an entity formed last year with backing from Deerfield Management Co., an investment firm focused on health care.

Financial terms of the J&J investment weren't disclosed and a spokesman didn't have further information.

NXT Biomedical is expected to invest up to $25 million in new technologies over the next five years. Deerfield earmarked up to $250 million to help form and develop as many as eight new startups that emerge from the incubator.

As a key member of the incubator, J&J will be able to shift NXT projects of interest to its medical-device companies for further development at the Center for Device Innovation at the Texas Medical Center. J&J has a partnerhip focused on devices with the Houston medical complex.

The incubator "will develop, advance and de-risk cutting-edge technologies in a highly capital efficient manner," J&J said in a statement Tuesday.

NXT, based in Irvine, Calif., was cofounded in Sept. 2018 by Stan Rowe, the former chief scientific officer at Edwards Lifesciences Corp.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

January 08, 2019 08:39 ET (13:39 GMT)

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