[Health Innovation②] JLABS introduces ‘No Strings Attached’ model to Korean biotech startups

JLABS, the life science and biotech incubator of Johnson & Johnson (J&J), recently expanded into Korea with the launch of JLABS Korea in March. This marks the third Asian location for JLABS, following Singapore and Shanghai. The initiative aims to accelerate healthcare innovation by providing startups with facilities, expertise, education, and funding opportunities.

JLABS Korea offers a special program with comprehensive, customized consulting to boost the competitiveness of Korean companies and support their international market entry. Already, 15=6 Korean companies have been selected to participate in the JLABS program and receive tailored support in areas such as pipeline evaluation, marketing strategies, and investment attraction.

These include Azcuris, BrilliantStrings Therapeutics, Cellus Inc., CNCure Biotech, Gellycle, Hutom, Lmito Therapeutics, Mediwhale, Neumous, Ordaos, PiMedBio, Prazer Therapeutics, siRNAgen Therapeutics, TIBA Biotech, TiCARos, and Ubix Therapeutics

The Korean government, particularly the Ministry of Health and Welfare, has shown strong support for this initiative, highlighting the importance of fostering innovation in Korea's healthcare sector. Globally, JLABS has built relationships with over 1,000 startups and facilitated investments exceeding 145 trillion won ($106.2 billion).

As JLABS is starting its operation in Korea, Korea Biomedical Review met with John Choi, the inaugural head of the Korean branch, to hear what JLABS plans to accomplish in Korea.

Choi brings extensive experience in the biotech industry to his role as head of JLABS Korea.

Previously, he was CEO and co-founder of Imvaq Therapeutics, where he raised significant venture funding and launched a phase I clinical trial for a cancer vaccine. Choi also co-founded and served as Chief Business Officer of Shanghai-based Hua Medicine, where he developed strong networks with U.S. and Chinese pharma and biotech executives and investors.

His background in both Western and Asian biotech ecosystems uniquely positions him to lead JLABS Korea's mission of globalizing Korean healthcare innovation.

Choi stressed that he plans to use his rich background as a venture capitalist and serial entrepreneur to leverage JLABS' extensive global connections and propel Korean companies onto the international stage.

 "Our job is not to make Korean companies more networked here in Korea, but to globalize them in larger international markets," Choi said. “At the heart of JLABS' approach is its unique ‘no strings attached’ model.”

Unlike traditional incubators, JLABS does not take equity or options in the companies it supports, Choi added.

Elaborating on this model, Choi explained that companies incubated by JLABS are free to go to competitors.

"Of course, as we help them mature and reach their next milestones, we hope they eventually partner with J&J," Choi said. 

This new, innovative approach has proven remarkably successful on a global scale.

“Our track record speaks volumes, with 59 initial public offerings, 63 acquisitions, and over 450 partnership deals with J&J itself,” he added.

Choi stressed that JLABS Korea will offer a holistic support system for startups, including mentorship, networking opportunities, and access to J&J’s vast resources and expertise.

When asked about what sets JLABS apart from other open innovation programs run by multinational companies, Choi emphasized several key differentiators.

"First and foremost, JLABS was one of the pioneers of this open innovation model and we have a long track record and experience," Choi said.

Choi also highlighted the vast resources at JLABS' disposal.

"To call on the 130,000 plus employees of J&J with all their expertise, scientific background, connections, and network - I think very few companies can replicate that type of reach," he said. 

Notably, Choi pointed out JLABS' formalized programs for introducing startups to J&J's internal expertise, called JPALS, which is where startups can receive insights directly from top J&J scientists."

"Upon acceptance to JLABS, each resident company is assigned an expert who can be an important asset for startups at every developmental stage," Choi said. 

Choi also noted J&J's patience in nurturing early-stage technologies.

"We have the patience to be able to wait two or three years until this early-stage technology matures to something that is partnerable or is of interest to big pharma."

JLABS works in Korea

Since its recent launch, JLABS Korea has wasted no time in implementing its proven strategies to nurture local healthcare innovation.

By adapting its global initiatives to the Korean context, JLABS aims to create a thriving ecosystem that bridges Korean startups with international opportunities. One of the first major steps in this direction has been the introduction of a signature JLABS program tailored for the Korean market.

“One of JLABS' key initiatives is the Quickfire Challenge, which recently launched its first Korean edition in the MedTech space,” Choi said.

Choi proudly announced the challenge's success, with over 100 applicants vying to solve pressing healthcare problems.

“The challenge not only offers substantial grants but also provides winners with access to JLABS facilities worldwide and mentorship opportunities,” he said.

During the interview, Choi also praised Korea's healthcare innovation ecosystem.

"Korea is very attractive from the perspective of science and scientists with high expertise in biosimilars, monoclonal antibodies, small molecules, and high-throughput screening,” Choi,” said. “There is a strong foundation for new drug discovery and medical technology development.”

Despite the attractive ecosystem, Choi acknowledged certain challenges for global venture capitalists investing in Korean companies.

“The primary hurdles include unfamiliarity with Korean corporate structures and practical difficulties in managing overseas investments,” Choi said.

However, Choi pointed out various indirect investment opportunities, including licensing, company formations in the U.S. for licensing Korean assets, and potential "flips" of companies between Korea and the U.S.

"Some companies in our portfolio will flip from Korea to the U.S. side as well and then reverse as well - there are Korean entrepreneurs that started the company in the U.S. and we aim to shift to the Korean side, and we have some companies in the portfolio that are looking at those types of options as well,” he said.

Choi offered valuable advice for Korean biotech and medical startups looking to enter the global market.

He emphasized the critical importance of securing sufficient funding to reach the next milestone, particularly highlighting the challenges in obtaining larger investments needed for later-stage clinical trials.

"Raise money when you don't need it," Choi advised, stressing the importance of financial planning in the volatile world of biotech development.

JLABS Korea is also actively fostering collaborations within the Johnson & Johnson family and beyond.

Choi mentioned partnerships with J&J MedTech and J&J Innovative Medicine. The organization is gearing up for several high-profile events, including a global roadshow in San Francisco and a regional CEO summit in Singapore, aimed at exposing portfolio companies to a broader audience of investors and potential partners.

Looking to the future, Choi articulated a compelling vision for JLABS Korea, which is to create "heroes of healthcare" – success stories that can inspire and drive the entire ecosystem forward.

Drawing parallels with the tech industry's iconic figures like Steve Jobs and Bill Gates, Choi aspires to nurture similar trailblazers in the Korean healthcare sector.

"If we can create one or two of these heroes and move that ecosystem, move that viewpoint of trying to emulate and become the next Samsung of healthcare or the Korean J&J, I think that would be ideal," Choi said. "I don't think it's going to take decades as we have all the science, the people, hardworking entrepreneurs, great scientists, great clinical hospitals – all the elements are there."