And just this week, Johnson & Johnson announced that it would be closing its JLabs innovation centre in Toronto. Since 2016, this hub of talent, operating and research space has served as a launchpad for early-stage biotech ventures. The facility, which occupies a 40,000-square-foot building, will be shutting down by the end of this year. However, despite JLabs’ success at forging and nurturing over 350 deals and partnerships, the decision is final. This accomplishment is the most significant throughout its 11 global centres.
The TLJ Toronto JLabs greatly enhanced the city’s reputation. It laid the groundwork for Toronto to become one of the world’s leading hubs for life sciences and biotech. It opened the door to access specialized laboratory facilities, office space and a network of mentors, researchers and investors. The center continues to be a remarkable force and game changer for early-stage biotech ventures. It gives them access to unique lab space that is often essential for their development.
Impact on the Biotech Community
Since its founding, JLabs has played a large role in fostering the Canadian health innovation ecosystem. It funded thousands of early-stage start-ups by giving them the infrastructure and resources they needed to develop and commercialize breakthrough technologies. Lee Reynolds, who has been engaged with the People’s Resource Centre from the beginning, shared his perspective on its significance.
“This lab space has played a vital role in advancing Canada’s health innovation ecosystem by supporting dozens of early-stage ventures with the infrastructure, resources, and networks needed to develop breakthrough technologies.” – Lee Reynolds
Johnson & Johnson will continue to support existing member startups’ access to the facility. They have said they will continue to provide access while they search for a new partner. The University of Toronto has pledged to continue operating JLabs through this transition period. This unlocks new and unique experiences for existing members, so they continue to see the benefits of being a part of the JLabs network.
Christine Allen, another JLabs participant, described how the program has connected them with international investors. She emphasized how important it was in building community support.
“They’ve helped us engage with global investors, and you become part of this community.” – Christine Allen
Continued Commitment to Innovation
Angelique Navarro from Johnson & Johnson emphasized the company’s ongoing commitment to fostering early-stage innovation despite the closure of the Toronto centre.
“We remain committed to accelerating early-stage innovation with partners through strategic collaborations, our global incubation program and venture investments across vibrant life science ecosystems.” – Angelique Navarro
Navarro stressed that Johnson & Johnson continually evaluates its innovation strategy. This method ensures that the company is providing the highest value to patients. And while their physical footprint in Toronto might be decreasing, their company’s ongoing commitment to innovation in biotechnology runs deep. Their passion for this work has not dimmed.
In 2015, the Ontario government committed $19.4 million to construct the JLabs incubator in Toronto. They consider this to be a smart play to develop the region’s medical research and life sciences industry. Politicians and industry leaders alike celebrated the news of JLabs’ expansion into Canada. They saw it as a massive vote of confidence in Toronto’s ability to pull it off.
Future of Lab Space in Toronto
As demand for lab space further increases in Toronto, more production facilities will likely enter the market. The experts all agree that this level of demand underscores the importance of ongoing support for the biotech initiatives underway in the region. Reynolds green-lit recurring budget priorities of the Technical Advisory Council to reinforce and grow lab infrastructure.
“Canada needs more of this kind of support, not less.” – Lee Reynolds
He further urged all levels of government to recognize lab infrastructure as a strategic investment vital for scientific progress and economic growth. The closing of JLabs presents some peril as well. It opens the door to some innovative new collaborations and developments in the life sciences space.
