Acquisition advances Johnson & Johnson’s leading Dermatology
portfolio with opportunity to address significant unmet need in
atopic dermatitis (AD)
Includes bispecific antibodies targeting proven disease pathways
and offers the potential to provide best-in-disease therapeutics
for people with moderate to severe AD and asthma
These pipeline additions demonstrate the Company’s strategic
approach to build a portfolio of differentiated and complementary
bispecifics to address multiple disease-driving pathways
Johnson & Johnson (NYSE: JNJ) announced today that it has
entered into a definitive agreement to acquire Proteologix, Inc., a
privately-held biotechnology company focused on bispecific
antibodies for immune-mediated diseases, for $850 million in cash,
with potential for an additional milestone payment.
Proteologix’s portfolio includes PX128, a bispecific antibody
targeting IL-13 plus TSLP, which is ready to enter phase 1
development for moderate to severe atopic dermatitis (AD) and
moderate to severe asthma, and PX130, a bispecific antibody
targeting IL-13 plus IL-22, which is in preclinical development for
moderate to severe AD. Since AD and asthma are both heterogeneous
diseases with different disease-driving pathways in distinct
patient subpopulations, targeting multiple pathways offers the
potential to deliver high-bar efficacy and remission.
PX128 inhibits IL-13-mediated Th2 skin inflammation, an
important disease-driving pathway in AD and asthma, as well as
TSLP, a mediator of tissue inflammation in AD and asthma. Like
PX128, PX130 inhibits IL-13-mediated Th2 skin inflammation. PX130
also inhibits IL-22 to restore the skin barrier and prevent
inflammation from environmental triggers, such as allergens. Both
assets are designed for infrequent dosing intervals, which offers
convenience patients prefer. Together, these pipeline additions
demonstrate a strategic approach to build a portfolio of
differentiated and complementary bispecifics.
“Atopic dermatitis is the most common inflammatory skin disease,
impacting more than 100 million adults worldwide,” said David Lee,
Global Immunology Therapeutic Area Head, Johnson & Johnson
Innovative Medicine. “About 70% of patients using existing standard
of care therapies do not reach remission1. Current advanced
therapies for AD either target a single pathway and have limited
efficacy or are more broadly immunosuppressive, resulting in
significant safety concerns. We see an opportunity for
best-in-disease efficacy for both PX128 and PX130 as each
bispecific antibody targets two different combinations of disease
driving pathways that are mediating the skin inflammation in
heterogenous subpopulations of AD patients.”
In addition to PX128 and PX130, the acquisition will provide
J&J with other bispecific antibody programs with applications
across a variety of other diseases, which further boosts the
Company’s capabilities to create novel bispecific programs.
“Integrating Proteologix bispecific antibodies into our pipeline
is an important first step in fulfilling our commitment to people
living with AD,” said Candice Long, Worldwide Vice President,
Immunology, Johnson & Johnson. “We plan to continue expanding
our reach and impact for people living with a wide variety of
immune-mediated diseases, leveraging more targeted options for them
to reach durable, symptom-free remission.”
About Atopic Dermatitis
Atopic dermatitis (AD), also referred to as eczema, is a chronic
inflammatory skin disorder affecting more than 102.8 million
children and 101.3 million adults worldwide.2 AD is characterized
by an overactive immune system that causes skin inflammation and
damage to the skin barrier, leaving it dry, itchy, and prone to
subsequent skin infections. The condition can cause poor quality of
life by impacting the ability to interact with family and friends,
interrupting sleep due to intense itching and/or painful skin,
leading to anxiety, stress and depression with an increased risk of
suicide.3
About Asthma
Asthma is a chronic lung disease affecting 262 million4 people
globally across all ages, sexes, ethnicities and races. The
symptoms of asthma - coughing, wheezing, and difficulty breathing -
are caused by inflammation and narrowing of the airways. Genetic
and environmental factors have been linked to asthma development,
and triggers, such as allergens and infections can start or worsen
asthma symptoms. Severe asthma attacks can be life-threatening and
may require emergency room visits and hospitalizations. While
asthma can be managed by medications and avoiding triggers for most
patients, there is currently no cure, and the burden of asthma on
patients’ quality of life and on health resource utilization
remains high.5
About the Merger Agreement
Under the terms of the transaction Johnson & Johnson (the
Company) will acquire Proteologix. The transaction is expected to
close mid-year 2024, subject to antitrust clearance and other
customary closing conditions. The transaction is expected to be
accounted for as a business combination and we do not anticipate
any impact to our previously disclosed 2024 adjusted EPS guidance
range.
About Johnson & Johnson
At Johnson & Johnson, we believe health is everything. Our
strength in healthcare innovation empowers us to build a world
where complex diseases are prevented, treated, and cured, where
treatments are smarter and less invasive, and solutions are
personal. Through our expertise in Innovative Medicine and MedTech,
we are uniquely positioned to innovate across the full spectrum of
healthcare solutions today to deliver the breakthroughs of
tomorrow, and profoundly impact health for humanity. Learn more at
https://www.jnj.com/ or at
www.janssen.com/johnson-johnson-innovative-medicine. Follow us at
@JanssenUS and @JNJInnovMed. Janssen Research & Development,
LLC and Janssen Biotech, Inc. are both Johnson & Johnson
companies.
Cautions Concerning Forward-Looking Statements
This press release contains “forward-looking statements”
regarding the acquisition of Proteologix Inc. The reader is
cautioned not to rely on these forward-looking statements. These
statements are based on current expectations of future events. If
underlying assumptions prove inaccurate or known or unknown risks
or uncertainties materialize, actual results could vary materially
from the expectations and projections of Johnson & Johnson or
Proteologix Inc. Risks and uncertainties include, but are not
limited to: the potential that the expected benefits and
opportunities of the acquisition may not be realized or may take
longer to realize than expected; challenges inherent in product
research and development, including uncertainty of clinical success
and obtaining regulatory approvals; uncertainty of commercial
success for new products; manufacturing difficulties and delays;
product efficacy or safety concerns resulting in product recalls or
regulatory action; economic conditions, including currency exchange
and interest rate fluctuations; the risks associated with global
operations; competition, including technological advances, new
products and patents attained by competitors; challenges to
patents; changes to applicable laws and regulations, including tax
laws and global health care reforms; adverse litigation or
government action; changes in behavior and spending patterns or
financial distress of purchasers of health care services and
products; and trends toward health care cost containment. In
addition, there will be risks and uncertainties related to the
ability to successfully integrate the products and
employees/operations and clinical work of Proteologix Inc., as well
as the ability to ensure continued performance or market growth of
Proteologix Inc.’s products. A further list and descriptions of
these risks, uncertainties and other factors can be found in
Johnson & Johnson’s Annual Report on Form 10-K for the fiscal
year ended December 31, 2023, including in the sections captioned
“Cautionary Note Regarding Forward-Looking Statements” and “Item
1A. Risk Factors,” and in Johnson & Johnson’s subsequent
Quarterly Reports on Form 10-Q, and other filings by Johnson &
Johnson with the SEC. Copies of these filings are available online
at www.sec.gov, at www.jnj.com or on request from Johnson &
Johnson. Neither Johnson & Johnson nor any of the Johnson &
Johnson MedTech entities undertakes to update any forward-looking
statement as a result of new information or future events or
developments, except as required by law.
Non-GAAP Financial Measures
This press release includes Adjusted EPS, which represents a
non-GAAP financial measure. The Company believes that providing
this non-GAAP financial measure enhances the Company’s and
investors’ understanding of our financial performance. Non-GAAP
financial measures should not be considered a substitute for, or
superior to, financial measures determined or calculated in
accordance with GAAP. The Company’s definitions of its non-GAAP
financial measures may not be comparable to similarly titled
measures reported by other companies. The most directly comparable
GAAP measure to Adjusted EPS is earnings per share, or EPS. The
Company is not providing a reconciliation of Adjusted EPS to EPS,
however, because Johnson & Johnson does not provide GAAP
financial measures on a forward-looking basis as the Company is
unable to predict with reasonable certainty the ultimate outcome of
adjusted items, such as legal proceedings, unusual gains and
losses, acquisition-related expenses, and purchase accounting fair
value adjustments without unreasonable effort. These items are
uncertain, depend on various factors, and could be material to
Johnson & Johnson’s results computed in accordance with
GAAP.
1 https://pubmed.ncbi.nlm.nih.gov/27690741/ 2 Global
epidemiology of atopic dermatitis: a comprehensive systematic
analysis and modelling study, British Journal of Dermatology 2023
Dec 20;190(1):55-61. 3 Association Between Atopic Dermatitis and
Suicidality, A Systematic Review and Meta-Analysis, JAMA
Dermatology, 2019, Feb; 155(2): 178-187. 4
https://www.who.int/news-room/fact-sheets/detail/asthma 5
https://www.cdc.gov/asthma/about/index.html
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version on businesswire.com: https://www.businesswire.com/news/home/20240516758075/en/
Media contact: Michelle Romano Mobile: 215 385 0372
mromano3@its.jnj.com
Investor contact: Raychel Kruper
investor-relations@its.jnj.com
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