NJ unveils medtech innovation center plans in South Jersey

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The basics:

The state unveiled plans for its 12th strategic innovation center (SIC) July 21, a multilocation effort in Camden and Mullica Hill.

The latest SIC will focus on medical technology. It features a partnership between the New Jersey Economic Development Authority and Rowan University. Plug and Play will operate the SIC.

Key things to know about the SIC:

• Pending board approval, the NJEDA will invest $9.55 million, including $5.5 million into a seed and early-stage fund for companies in the accelerator program and those that choose to locate and grow their operations in the state
• 20% of participating companies must be from New Jersey, while the remaining will include companies from out of state that may relocate here with support from programs for early-stage startups (such as NJ Accelerate)
• Cooper University Health Care will serve as the anchor commercial affiliate; and along with Cooper Medical School, the SIC will partner with the Shreiber School of Veterinary Medicine and the Virtua Health College of Medicine & Life Sciences;
• Will encompass 8,500 square feet within two locations in Camden: the Joint Health Sciences Center and the Cooper Medical School of Rowan University; will also have space on Rowan University’s West Campus in Mullica Hill
• Will support the research, development and commercialization of novel medical technologies and devices; and include comprehensive laboratory, diagnostic, and testing spaces for research and development of new technologies in a collaborative environment
• Garden State Venture Partners (a venture capital firm formed in partnership with Rowan University) will invest $7 million in seed and later-stage investment into participating companies
• Will support early-stage ideas emerging from southern New Jersey labs and pull companies from across the region into the state
• Plug and Play will oversee two cohorts of at least 25 companies a year

Powerful partnerships

Officials say this latest SIC will serve as an accelerator for South Jersey’s burgeoning medtech ecosystem – and promote overall scientific collaboration in the region.

“Due to the ingenuity of its entrepreneurs and its breadth of state resources to promote startup growth, New Jersey has long been a hub for innovation in medical technology,” said Gov. Phil Murphy. “Through robust investment in our innovation economy and partnerships with storied medical and academic institutions, New Jersey is poised to maintain its leadership in the research and development of inventive health care technologies.”

NJEDA Chief Executive Officer Tim Sullivan said the Murphy administration has focused on leveraging partnerships with the private sector and academic institutions to bolster the state’s startup community.

“Through the NJEDA’s Strategic Innovation Center initiative, the Garden State’s leadership in medtech and health care innovation will be strengthened, enhancing New Jersey’s economy competitiveness,” said Sullivan.

Rowan University President Ali Houshmand said that nothing like the SIC exists to draw investments of this type to New Jersey.

“The SIC will add value to strong partnerships like those we have throughout the state with health care leaders as a result of our medical education and research excellence,” said Houshmand. “We’re eager to see the SIC and GSVP attract startups that will thrive alongside, Cooper, Rowan, and our other partners.”

“By aligning both early and later-stage capital with world-class academic research and the clinical expertise of leading health systems, we are building a powerful platform to accelerate breakthroughs in health care and medical technologies – sectors that are vital to both public health and long-term economic growth across the state,” said Michael Connallon, managing partner at Garden State Venture Partners.

Strategic scaling

Cooper University Health Care co-CEO Dr. Anthony Mazzarelli said that a major focus of Cooper’s Innovation Center is supporting innovations and business creation that work to improve lives.

“We are excited to play a supporting role in work that will generate jobs as well as technologies and devices to improve and save lives,” said Mazzarelli.

“We’re proud to partner with NJEDA, Rowan University, and Cooper University Health Care to accelerate medtech innovation in South Jersey,” said Michael Olmstead, chief revenue officer and partner for Plug and Play, which previously partnered with the NJEDA on the NJ FAST SIC at Stevens Institute. “This Strategic Innovation Center reflects our belief that meaningful progress happens when startups, health care leaders, academia, and the public sector come together with a shared mission.”

NJEDA Chief Economic Transformation Officer Kathleen Coviello said that through programs such as the SIC initiative, the Garden State is continuing to invest in high-growth, strategic sectors that will define the economic future of the state.

“Our newest SIC investment will leverage Rowan University’s academic prowess in medical technology to boost inventive startup companies and promote novel discoveries, further South Jersey’s standing as a regional leader in medtech innovation,” said Coviello.

Olmstead added, “Our goal is to help the next generation of health care companies scale their impacts faster – right here in New Jersey.”