Hartford Business Journal

8 Hartford Business Journal • November 27, 2017 • www.HartfordBusiness.com Reporter's Notebook Matt Pilon | mpilon@HartfordBusiness.com Health Care/Bioscience, Startups & Entrepreneurs, Government/Law and Energy STARTUPS & ENTREPRENEURS Pharmaceutical giant scopes out UConn's incubator startups U Conn's Technology Incuba- tion Program is trying to make inroads with the world's biggest pharmaceutical maker. This month, two executives from Johnson & Johnson's innovation division in Cam- bridge, Mass., drove out to Farmington to meet incubator startups and discuss how the company selects new partners and tech- nologies to develop and commercialize. With major resources and various divisions — pharma, medical device and consumer — J&J is seen as a desirable potential option for an equity, research or licensing partnership, according to TIP overseers who arranged the visit. It was the first time J&J stepped foot in the Technology Incubation Program (TIP) building in Farmington (400 Farmington Ave.), invited by Mostafa Analoui, who was appointed executive director of venture development at UConn just over a year ago. "Absolutely," Analoui replied when asked if TIP's startups (which currently number 32 across two locations) would covet a relationship with J&J, a global company with 120,000 employees and a market cap of more than $370 billion. Analoui said three TIP startups were already talking to J&J about meeting in Boston to discuss their technologies. "This is a very fruitful conversation that we've started with them," he said. J&J has nine laboratory incubator facili- ties across North America, known as JLABS, including locations in New York and Boston. Paul Parker, TIP's director, said incubator companies are always on the hunt for out- side financing and research partnerships. "So this is an opportunity, hopefully, for some of our companies to find some of that," Parker said. Many TIP companies are working in an area of medical science that could be of in- terest to J&J, he said, though many are still in early stages of development. J&J puts out a lot of feelers for new tech- nologies, but the company is pretty selective. Jim Tobin, vice president of cardiovas- cular and metabolism scientific innovation at J&J Innovation, estimated his business unit has done approximately 450 deals of varying levels with outside startups and companies, out of approximately 15,000 companies its evaluated. "You've got to kiss a lot of frogs in this business," Tobin said with a grin. Parker said he hopes that 450 number will grow with the help of some UConn additions. "Either now or down the road," he said. While J&J is new to TIP, its not new to Connecticut. The company this month said it would sell off its 18.4 million shares in New Haven-based Achillion Pharmaceuticals for nearly $51 mil- lion. In September, J&J pulled the plug on a potential Hepatitis C treatment that contained a compound developed by Achillion. GOVERNMENT Bronin not holding breath on XL Center sale Tucked into the recently enacted state budget is a provision requiring Hartford to put out a request for proposals to lure potential investors or buyers for the aging XL Center. In a recent interview, Hartford Mayor Luke Bronin said he's happy to work with the Capital Region Devel- opment Authority to issue an RFP, but he's skeptical it will draw much interest. "I think it is a little naive to think that there's going to be a rush of investors looking to acquire a facility that requires hundreds of millions of dollars in investment to become competitive again," the mayor said. "That facility is obsolete. The mechanicals barely work. And it's not a competitive venue." Even if an interested investor or buyer emerges, there are substantial hurdles that must be cleared. "There's a lot of com- plexity here," he said, including contracts with the venue's operator Spec- tra Venue Management, and with UConn and other sports teams. The state has kept the XL Center afloat in recent years with hundreds of millions of dollars in capi- tal upgrades. The recently passed bud- get includes another $40 million authorization for the venue, built in the 1970s. But that pales in compari- son to the estimated $250 million that is needed for a full overhaul. Bronin and his former boss, Gov. Dannel P. Malloy — who had included the $250 million in his own budget proposal earlier this year — wrote a letter to the New York Islanders in February pitch- ing the XL Center as a future home for the NHL team. Bronin said he wants to see a revitalized XL Center. "There are lots of uses for competitive modern are- nas," he said. "It continues to be an important driver of business to the many small businesses and restaurants in the city." But without the funding, public or private, decisions will need to be made. "I don't think it would serve the state of Connecticut well to have a rusting hulk of metal and concrete occupying the middle of its Capital City," he added. INSURANCE Insurance still a dominant sector in CT, Hartford While Connecticut's insurance industry took a hit this year when Aetna announced plans to move its corporate headquarters to New York City, the sector continues to have a major economic presence in Connecticut. Accounting firm PwC recently released a report highlighting the large role insurers play in the state's economy, both as employers and economic drivers. Here's a glimpse at the data: National Rank Insurance jobs as % of total CT employment 2.6% 1st Insurance payroll as % of total CT payroll 5.1% 1st Insurance gross state product as % of CT GSP 5.2% 3rd Source: CERC calculation of Moody's data; PwC Travelers Cos. is among the insurers that still has a significant presence in downtown Hartford. Hartford Mayor Luke Bronin said trying to sell the XL Center will be no easy task. PHOTO | HBJ FILE PHOTO | HBJ FILE HBJ PHOTO | MATT PILON Jim Tobin, a vice president with Johnson & Johnson Innovation, explains how startups partner with the pharmaceutical, medical device and consumer products giant.

• Cover