2017 Health for Humanity Report

Research & Development

Our Ecosystem of Ingenuity

Across the enterprise, we focus on developing and nurturing our ecosystem of innovation. It starts with our people, who truly are pioneers of ingenuity. We hire top scientists and medical experts to advance the Johnson & Johnson product pipeline in our R&D locations around the world. Having established presence in major research hubs with our four global Innovation Centers, we advance science and innovation in partnership with emerging entrepreneurs in our JLABS facilities. Johnson & Johnson also boasts the oldest corporate venture fund in the life sciences industry, and has been making strategic venture and equity investments in life science innovations for more than four decades.

We marked the five-year anniversary in 2017 of JLABS, our open-innovation ecosystem for healthcare entrepreneurs. JLABS supports hundreds of entrepreneurs around the globe working to turn breakthrough science into transformative solutions in biotech, pharmaceutical, medical devices, consumer and digital health programs. In 2017, we celebrated:

    • $9.4 billion
      in capital secured by JLABS resident companies through financing and strategic relationships
    • 750
      innovators focused on science
    • 312
      companies engaged in breakthrough science
    • First
      JLABS Impact Report published, accompanied by our first CEO Summit
    • 71
      companies executing deals with members of the J&J Family of Companies

In addition to observing its milestone anniversary, JLABS continues to grow and thrive globally. Expanding our collaborations with entrepreneurs, we announced the first JLABS location outside North America, in Shanghai, China. Set to launch in 2019, JLABS China is a collaboration with the Shanghai Municipal Government, Pudong New Area Government and Shanghai Pharma Engine Company that will support many innovative life science start-ups. In the United States, Johnson & Johnson Innovation, New York State and the New York Genome Center announced in 2017 its collaboration to launch JLABS@NYC, slated to open in 2018.

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To further strengthen our innovation ecosystem in the Asia Pacific region in 2017, we opened our Innovation Partnering Office at Seoul Bio Hub. Our biotech start-up incubator is supported by the Seoul Metropolitan Government and Korea Health Industry Development Institute. The facility, located in Seoul, Korea, will serve as an important platform for Johnson & Johnson Innovation to build relationships with healthcare entrepreneurs at Korean start-up companies, universities and institutions.

In the United States, we celebrated the official opening of Johnson & Johnson Medical Devices’ Center for Device Innovation at the Texas Medical Center (TMC) – a broad, innovative collaboration with Johnson & Johnson Innovation and TMC to accelerate development of breakthrough medical devices technologies. Housed within the TMC Innovation Institute, the 26,000-square-foot facility will host R&D staff working on select internal projects along with external ventures. The TMC Innovation Institute is also home to JLABS at TMC, an incubator in life sciences opened in 2016 and TMC’s first collaboration with our Company.

Beyond physical expansions of our innovation hubs, we deploy online QuickFire Challenges to attract cutting-edge, early-stage innovation from around the world. In 2017, our Artificial Intelligence (AI) for Drug Discovery Quickfire Challenge awarded up to $100,000 to individuals and teams with the most innovative ideas, technologies, or solutions using AI to advance healthcare. Our investment in AI is one important way Johnson & Johnson can bring life-saving medicines and solutions to market—and to patients—faster. To view the winning AI ideas, click here.

To honor the legacy of one of the 20th century’s most accomplished industry researchers and philanthropists, we launched the Dr. Paul Janssen Project. It is a public engagement initiative inspired by the legacy of Dr. Paul Janssen, the founder of Janssen Pharmaceutica N.V., whose passion to make an impact on the world translated into many breakthroughs in medical history. This multi-faceted campaign will help fuel the next generation of innovators and celebrate the power of science to change the world. The project’s first QuickFire Challenge, called "The Lab Coat of the Future," kicked off in October 2017.

Product Innovation

Guided by Our Credo, innovation at Johnson & Johnson starts with the needs of those we serve: patients, consumers and healthcare providers; we put people first. In each of our business segments, we prioritize the product pipeline based on the opportunity to address unmet medical needs and improve the lives of patients and consumers. We also consider the potential for commercial success, which allows us to reinvest on behalf of patients and consumers. For more information on our business segments and our approach, please visit the About Our Company section.

In terms of product launches, we count 2017 as another successful year. Across our three business segments we introduced a number of new products in different markets. Among these are innovative products that anticipate and answer increased demand for more personalized and sustainable products. For example, our Medical Devices team at DePuy Synthes launched the MAXFRAME Multi-Axial Correction System, to correct limb deformities from fractures, infection, arthritis, tumors or congenital causes. The unique 3D software and modular circular ring fixation system of MAXFRAME enables surgeons to customize each frame to meet individual patient needs.

In our Consumer segment, the research team behind NATRASURF received a 2017 Johnson Medal, the most prestigious award given for R&D within our Company. The team was recognized for their outstanding consumer product science and technology, which combined cutting-edge science, green chemistry and deep consumer insights. A breakthrough sustainable cleansing agent first introduced in AVEENO PURE RENEWAL sulfate-free shampoo, NATRASURF technology has now been integrated into several new products across our Consumer portfolio.

In our Pharmaceutical business, the 2017 Johnson Medal Award went to a team of researchers at Janssen passionate about finding a better way to treat patients at risk of cardiovascular disease and disability, specifically through an improved oral anticoagulant therapy. Their groundbreaking pharmaceutical work led to XARELTO (rivaroxaban), the latest-generation blood thinner and first-in-class Factor Xa inhibitor oral anticoagulant used in preventing strokes caused by atrial fibrillation, and for treatment of deep venous thrombosis and pulmonary embolism. Since the U.S. FDA approved XARELTO in 2011, additional Phase 3 studies have been underway with a vision of broadening the scope of the therapy to meet more unmet patient needs in heart health. Clinical research is expected to conclude in 2022. Additional product innovation from 2017 can be found in the World Without Disease section of this report.

See Product Sustainability for more information on our product innovation related to environmental sustainability.

Our Performance

Table: Research & Development, Our Performance

* Number of medical devices launched is estimated; 4 Consumer medical devices confirmed and 33 hospital medical devices not confirmed by Corporate Internal Audit.
** Includes employees classified under job functions of R&D and Engineering.

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