Pharma Puts Up Money for Biotech

GlaxoSmithKline and Johnson & Johnson contribute a total of $100 million to early-stage biotech endeavors.

Written byJef Akst

| 2 min read

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Earlier this month, financial advisor Mark Kessel wrote an opinion for The Scientist suggesting that “pharmaceutical companies should deploy cash to fund struggling biotech companies, which could generate much needed new drugs.” It seems pharmaceutical giants GlaxoSmithKline and Johnson & Johnson agree. The two companies announced today (March 21) that they have contributed $50 million each, which, along with $100 million from venture-capital firm Index Ventures, will go towards funding early-stage biotechnology companies.

In the last few years, the biotech industry has faced increasing difficulties getting funded by venture capitalists who have turned to “more mature businesses or less risky industries,” Reuters reported. Other investors have similarly turned away from early-stage biotech, as evidenced by the relatively few numbers of biotech IPOs. But the new ...

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Meet the Author

Jef Akst
Jef (an unusual nickname for Jennifer) got her master’s degree from Indiana University in April 2009 studying the mating behavior of seahorses. After four years of diving off the Gulf Coast of Tampa and performing behavioral experiments at the Tennessee Aquarium in Chattanooga, she left research to pursue a career in science writing. As The Scientist's managing editor, Jef edited features and oversaw the production of the TS Digest and quarterly print magazine. In 2022, her feature on uterus transplantation earned first place in the trade category of the Awards for Excellence in Health Care Journalism. She is a member of the National Association of Science Writers.
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