Groundbreaking Initiative Will Make Capital, Operating Support and Tax Incentives Available to Life Science Companies to Support the Growth of Research and Development
$17 Million Project will Launch JLABS @ NYC – a Collaboration Between Johnson & Johnson Innovation and the New York Genome Center to Support Growth of Healthcare Solutions and Commercialize Life Sciences Research to Grow the Economy
Initiative Builds on New York’s Role as a Global Leader in Attracting Cutting-Edge Research and Technology
More Than 4.2 Million Square Feet of Innovation Space and 2,038 Acres of Developable Land Available Tax Free at 62 Colleges and Universities Statewide
New Programs Will Help Develop Research and Entrepreneurial Talent Necessary for Growing New York’s Life Science Sector
Governor Andrew M. Cuomo today announced the next step in his groundbreaking $650 million initiative to spur the growth of a new, world-class life science research cluster in New York – growing the number of public-private partnerships.
To foster idea generation and breakthrough innovations in the life sciences, the state will provide $17 million in capital funding to launch JLABS @ NYC – a collaboration between Johnson & Johnson Innovation and the New York Genome Center to build a 30,000 square foot incubator with capacity for up to 30 life science startups.
As part of the Governor’s sweeping $650 million life sciences initiative, the state will also offer $250 million in tax incentives for new and existing life science companies, $200 million in state capital grants to support investment in wet-lab and innovation space, $100 million in investment capital for early stage life science initiatives, with an additional match of at least $100 million for operating support from private sector partnerships.
“The ever-evolving life science sector is discovering solutions to the most pressing problems of our time, helping to cure disease and save lives around the world,” Governor Cuomo said. “New York is poised to be a global leader in this industry, and the new, vital incubator JLABS will be the catalyst that pushes our state into the forefront of this exciting field. I look forward to working with Johnson & Johnson and the New York Genome Center to build momentum in the life science industry and establish New York as the home of discoveries that will drive the economy and create a better future for all.”
$17 Million JLABS @ NYC Initiative
The new 30,000 square-foot incubator will be located at the New York Genome Center in Soho and will open to biotech, pharmaceutical, medical device and consumer health companies. The initiative will provide state-of-the-art laboratory space, equipment and technology to spur research and innovation in the life sciences industry and expand the state’s ability to commercialize this research and grow the economy. As part of the initiative, Johnson & Johnson Innovation will launch a competition to recruit companies working in the areas of biotech, pharmaceutical, medical device and consumer health companies, and provide the winner with one year of residency at JLABS @ NYC.
"Johnson & Johnson welcomes the opportunity to open JLABS in New York City to support the thriving life science innovation ecosystem in NY through this collaborative effort between the State of New York and the New York Genome Center,” said Alex Gorsky, Chairman and CEO of Johnson & Johnson. “For more than 130 years, innovation has been the lifeblood of Johnson & Johnson's efforts to transform healthcare globally, and we look forward to working with the innovators throughout the New York region on making it the brightest future possible for patients all over the world."
“The New York Genome Center is excited to be a partner with Johnson & Johnson Innovation, Governor Cuomo and New York State in bringing JLABS to New York,” said NYGC President and COO Cheryl A. Moore. “JLABS’ support of talented scientists in New York as they take their innovative ideas to market aligns with our mission of fostering intellectually vibrant collaborations that advance the development of new treatments, therapies and therapeutics against human disease. This initiative would not have been possible without the leadership of the Partnership for New York City and the Partnership Fund for New York City. We are grateful for the commitment of all of our business and academic partners to enhance the life sciences infrastructure in New York.”
The Life Science sector encompasses the fields of biotechnology, pharmaceuticals, biomedical technologies, life systems technologies, and includes organizations and institutions that devote the majority of their efforts to the various stages of research, development, technology transfer and commercialization. Every day, firms in this sector are developing new medical and pharmaceutical breakthroughs that have the potential to save lives, whether through new therapies or the early detection of diseases like autism and cancer. These firms are also making significant advancements in the realms of agriculture and environmental biotechnologies, helping create a cleaner and more sustainable future.
The Governor’s $650 million life science initiative includes:
$250 Million in Tax Incentives for New and Existing Life Sciences Companies that are Expanding Research and Development
To better compete with other states actively poaching New York’s top life science research talent, the state must draw more capital to this sector from early stage and angel investors, as well as make it more attractive for existing and new firms in life sciences to locate, invent, commercialize and produce here in New York.
Under the Governor’s program:
- Existing life science businesses would be eligible for an annual allocation of $10 million in Excelsior tax credits;
- New life science businesses would receive a 15 percent refundable tax credit on all new qualifying research and development expenditures. Small businesses in the life sciences industry could be eligible for a 20 percent credit.
- Angel investors would receive a credit of 25 percent of their investment, with a maximum of $250,000 per investor.
$200 Million in State Capital Grants and Offering More Than 4.2 Million Square Feet of Space and 2,038 acres of Developable Land Tax Free to Accelerate Life Science Innovation
Innovation in the life sciences requires state-of-the-art laboratory space, equipment and technology. The Governor’s initiative invests $200 million, over ten years, to support the capital needs of life science entities, positioning New York’s wet labs and innovation space to be the place where future technologies are born.
Additionally, the lack of affordable and appropriate lab space has been cited as a barrier to New York reaching its potential in the life sciences. To remedy this, the state will also make more than 4.2 million square feet of innovation space and 2,038 acres of developable land available tax free at 62 colleges and universities statewide. The availability of grants, land and space creates an unprecedented opportunity to expand access to wet labs, infrastructure and other equipment essential for life sciences research, innovation and development.
"I look forward to working with Johnson & Johnson and the New York Genome Center to build momentum in the life science industry and establish New York as the home of discoveries that will drive the economy and create a better future for all.”
Providing $100 Million in Investment Capital for Early Stage Life Sciences Initiatives, Matched by at least $100 Million from the Private Sector
As part of New York’s commitment to the growth of this sector, the state is pledging $100 million for additional investment capital for early stage life science firms. In addition, private sector partnerships are also pledging matching funds for investment and operational support, bringing the total commitment to $200 million.
Part of the investment will include a new life science launch competition, modeled on the highly successful 43North innovation competition, will further support the growth of this sector. New York State will host a quarterly, 13-week regional life science launch competition in which firms in the midst of conducting groundbreaking research and developing emerging technologies would compete for $25,000 grant funding. All the quarterly winners will then compete for one of five $100,000 top business launch prizes at a statewide annual Life Sciences Summit, which will gather top researchers, commercial firms venture funders and policymakers together to strategize next steps for continued aggressive growth of the life science sector.
Developing Research and Entrepreneurial Talent Necessary for Launching and Growing Life Science Businesses
Access to talent and management expertise continues to be needed in order for early stage life science firms to succeed. In order to grow this talent base in New York, Governor Cuomo is establishing programs and partnerships that will attract top flight researchers to work with our academic centers and medical schools on the latest life science innovations. These include:
- A Life Sciences Internship Program will leverage New York’s network of public/private academic centers to facilitate the placement of students--or recent graduates--enrolled in a life science field of study at a college or university located in New York into paid internships with a partnering life science company.
- A life sciences researcher recruitment program that will work with our academic medical colleges and other academic programs to attract top-flight life sciences researchers.
- Entrepreneurial Advisory Panels in Life Sciences that will match entrepreneurs and innovators with a panel of mentors that will help guide them in their business decisions, increasing the rate of success and growth of new firms in New York State.
- Partnership with the Empire Clinical Research Investigator Program administered by the New York State Department of Health, which provides over $8.5 million annually to teaching hospitals that train physicians as clinical researchers in order to advance life sciences research in New York to attract and retain the best life sciences researchers.
About the New York Genome Center
The New York Genome Center (NYGC) is an independent nonprofit at the forefront of transforming biomedical research and clinical care. Affiliated with renowned academic, medical and industry leaders across the City and region, NYGC focuses on translating genomic research into clinical solutions for serious diseases. Its member organizations and partners are united in this unprecedented collaboration of technology, science and medicine, harnessing the power of innovation and discoveries to improve people’s lives. Member institutions include: Albert Einstein College of Medicine, American Museum of Natural History, Cold Spring Harbor Laboratory, Columbia University, Cornell University/Weill Cornell Medicine, Hospital for Special Surgery, The Jackson Laboratory, Memorial Sloan Kettering Cancer Center, Icahn School of Medicine at Mount Sinai, New York Presbyterian Hospital, The New York Stem Cell Foundation, New York University, Northwell Health (formerly North Shore-LIJ), Princeton University, The Rockefeller University, Roswell Park Cancer Institute, Stony Brook University and IBM.
About Johnson & Johnson Innovation
Johnson & Johnson Innovation LLC focuses on accelerating all stages of innovation worldwide and forming collaborations between entrepreneurs and Johnson & Johnson’s global healthcare businesses. Johnson & Johnson Innovation provides scientists, entrepreneurs and emerging companies with one-stop access to science and technology experts who can facilitate collaborations across the pharmaceutical, medical device and consumer companies of Johnson & Johnson. Under the Johnson & Johnson Innovation umbrella of businesses, we connect with innovators through our regional Innovation Centers; Johnson & Johnson Innovation |JLABS; Johnson & Johnson Innovation – JJDC, Inc.; JLINX; and our business development teams to create customized deals and novel collaborations that speed development of innovations to solve unmet needs in patients. JLABS provides the laboratories, expertise, education, tools and resources needed to help life science startups thrive, all with no strings attached. A Johnson & Johnson Innovation Center for Device Innovation at the Texas Medical Center (CDI @ TMC) has been established to accelerate the development of medical devices. For more information about Johnson & Johnson Innovation, please visit:www.jnjinnovation.com.