Johnson & Johnson International's investment arm, J&J Development Corp, has appointed an Israeli representative for identifying investment opportunities in Israeli start-up companies. Johnson & Johnson intends to invest up to $50 million in start-up companies in the biotechnology and medical equipment sectors. The company is also looking into the possibilities of technology licensing agreements and the acquisition of companies, "Globes" has learnt.
J&J Development Corp's president Larry Pickering said that Johnson & Johnson would focus on investing in start-up companies at the seed stage, but would also invest in companies at later stages. According to Pickering, Johnson & Johnson will invest $1-3 million at the first stage, but will not strive to be a leading investor in such companies. Pickering said he had met the representatives of several start-up companies that are potential candidates for acquisition by the concern.
Johnson & Johnson recently decided to appoint a special representative in Israel, Ze'ev Zehavi. It should be noted that Johnson & Johnson has only a single representative for the whole of Europe.
Pickering met in Israel with venture capital fund officials, to examine the funds' willingness to invest in companies alongside Johnson & Johnson. The move came after some leading funds reduced or cancelled their investments in the life sciences sector.
Johnson & Johnson has so far bought one Israeli company: Biosense, for which it paid $400 million in shares in 1997.
Published by Israel's Business Arena January 31, 2000