Johnson & Johnson will close a nearly 200K SF research and development facility in Brisbane, California, less than two years after it opened, Fierce Biotech first reported.

Johnson & Johnson confirmed the closure to Fierce Biotech, saying it will establish a new innovation center in its place.

The company also told the San Francisco Business Times that it has plans to establish a California Innovation Center at an undisclosed location in the Bay Area.

The news comes as the pandemic-driven expansion in Big Pharma research shows signs of cooling, as Bisnow has reported.

While many pharmaceutical companies performed tremendously well during the pandemic, some of those companies are now reevaluating their costs, cutting employees and restructuring as the investment environment slows its pace.

The Johnson & Johnson San Francisco Bay Campus opened in fall 2022, doubling the research and development presence of the company in the Bay Area.

At the time of its opening, the facility could house up to 400 employees, a news release from Johnson & Johnson said.

The San Francisco Bay Campus included research functions for gene and RNA therapies, novel treatments for retinal and infectious diseases as well as artificial intelligence and machine learning capabilities.

Johnson & Johnson still has a research facility in South San Francisco that is not impacted by the Brisbane facility’s closure, Fierce Biotech reported.