JnJ strengthens atopic dermatitis pipeline with acquisition of Yellow Jersey Therapeutics

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.