JnJ strengthens atopic dermatitis pipeline with acquisition of Yellow Jersey Therapeutics

Written By :  Ruchika Sharma
Medically Reviewed By :  Dr. Kamal Kant Kohli
Published On 2024-07-14 07:00 GMT   |   Update On 2024-07-16 14:55 GMT
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New Brunswick: Johnson & Johnson has announced that it has successfully completed the acquisition of Yellow Jersey, a demerged subsidiary of Numab Therapeutics to secure the global rights to NM26, a novel, investigational first-in-class bispecific antibody, in an all-cash transaction of approximately $1.25 billion, as announced on May 28, 2024.

NM26, which is ready to enter Phase 2 studies in atopic dermatitis (AD), targets two clinically proven pathways, IL-4R alpha subunit (IL-4Rα) and IL-31, which trigger Th2-mediated skin inflammation and skin itch, respectively.

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“NM26 is designed to help different subpopulations of patients by targeting two disease-driving pathways, which is key when treating a heterogeneous disease like AD,” said David Lee, Global Immunology Therapeutic Area Head, Johnson & Johnson Innovative Medicine. “We are excited about the potential this represents to transform the standard of care for AD, as well as other inflammatory skin diseases involving Th2 inflammation and itch.”

AD is the most common inflammatory skin disease. It causes itching and inflammation which are made worse by scratching. It can lead to increased risk of skin infections, skin pain, difficulty sleeping, anxiety, stress, depression and even an increased risk of suicide.

“Nearly three-quarters of people with AD are not achieving remission with currently available treatments. The unmet need is high, and we must do better for patients,” said Candice Long, Worldwide Vice President, Immunology, Johnson & Johnson. “Our investment in NM26, and other bispecific antibodies, is another important step towards our mission of durable, symptom-free remission for all patients living with immune-mediated diseases.”

Under the terms of the transaction Johnson & Johnson has acquired Yellow Jersey Therapeutics which includes the NM26 program, and which was formed through a demerger with Numab. J&J entered a separate agreement with Kaken Pharmaceutical to secure rights in the Asia Pacific Region.

In accordance with US GAAP, the transaction is being accounted for as an asset acquisition, resulting in an in-process research and development charge of approximately $1.25B in the third quarter of 2024 and full year Adjusted EPS dilution of $0.56 in 2024 and approximately $0.10 in 2025. The 2024 impact will be reflected in updated guidance at the second quarter earnings call on July 17, 2024.

Read also: JnJ gets USFDA, European Commission nod for Sirturo

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