J&J acquires atopic dermatitis antibody for $1.25B in Numab deal

Johnson & Johnson (J&J) has recently strengthened its position in the immunology sector by securing a substantial deal with Numab Therapeutics. This agreement involves a payment of $1.25 billion in cash to obtain the global rights to Numab's promising bispecific antibody, NM26, which is about to enter phase 2 trials. This transaction follows closely on the heels of J&J's acquisition of Proteologix for $850 million on May 16, marking the company’s second significant bispecific antibody deal within a fortnight.

NM26 is currently being developed to treat atopic dermatitis (AD), a chronic inflammatory skin condition. J&J, however, sees potential for its application across a broader range of inflammatory skin diseases. The details of the transaction, announced on a Tuesday, include the acquisition of Yellow Jersey Therapeutics—a Numab subsidiary that holds all NM26-related assets. J&J is not acquiring the entirety of Numab, but solely the global rights to this particular drug. The deal is slated for closure in the latter half of the year.

Novo Holdings, an investor in Numab, commented on the strategic focus shift towards NM26, an IL4/IL31 bispecific antibody targeting autoimmune diseases, with a primary indication for atopic dermatitis. According to Michael Bauer, a partner at Novo Holdings, the decision to concentrate on NM26's development has yielded promising early data in patients, culminating in J&J's acquisition.

Numab will continue to advance its pipeline, which includes other inflammatory assets in preclinical stages and a phase 1 therapy targeting solid tumors. NM26 specifically targets the IL-4R alpha subunit (IL-4Rα) and IL-31, which are implicated in skin inflammation and itching, respectively. J&J anticipates that NM26 could potentially be effective for other diseases influenced by these pathways.

Candice Long, J&J's worldwide vice president of immunology, emphasized that this investment in differentiated bispecific antibodies marks a significant chapter in J&J's history of impactful immunology research. This move aligns with J&J’s commitment to addressing unmet medical needs by leveraging patient insights and their extensive disease expertise.

This acquisition is part of J&J's broader strategy to enhance its immunology portfolio. It follows the $850 million purchase of Proteologix, which added a collection of bispecific immunology drugs, including PX128. PX128 is a bispecific antibody designed to target IL-13 and TSLP, addressing conditions such as AD and severe asthma.

J&J's recent maneuvers are a response to previous setbacks in their immunology ventures. For instance, their $750 million acquisition of XBiotech in 2019 did not meet expectations, leading J&J to terminate the development of bermekimab, an antibody intended for eczema treatment. In addition to these activities, J&J's business development team has been actively expanding its portfolio, as demonstrated by the $2 billion acquisition of ADC biotech company Ambrx in January.

Through these strategic acquisitions and developments, J&J aims to solidify its presence and leadership in the immunology field, addressing a variety of unmet medical needs with innovative therapeutic solutions.