J&J Acquires Proteologix for $850M, Targets Atopic Dermatitis with Bispecific Antibodies

Johnson & Johnson is enhancing its dermatology sector through an $850 million cash acquisition of Proteologix, a privately-held biotech firm. Announced on Thursday, this acquisition will bring bispecific antibody assets for atopic dermatitis into J&J’s pipeline.

Proteologix’s lead asset, PX128, is a bispecific antibody that targets both interleukin 13 and TSLP. It is ready for Phase I trials for severe atopic dermatitis (AD) and moderate to severe asthma. Another promising candidate, PX130, is in the preclinical stage and targets IL-13 and IL-22 for moderate to severe AD. J&J believes targeting dual pathways will enhance efficacy, and both candidates are designed for convenient, infrequent dosing.

J&J highlighted that these additions showcase a strategic effort to create a portfolio of unique and complementary bispecifics. Besides the initial $850 million, Proteologix, based in California, stands to receive additional milestone payments. The acquisition will also include other bispecific antibody programs. Pending antitrust clearance and customary closing conditions, the deal is anticipated to finalize by mid-2024.

David Lee, global immunology therapeutic area head at J&J, emphasized the impact of atopic dermatitis, which affects over 100 million adults globally. He pointed out that around 70% of patients do not achieve remission with standard medications. Lee stated, “We see an opportunity for best-in-disease efficacy for both PX128 and PX130, as each bispecific antibody targets two different combinations of pathways driving the skin inflammation in diverse subpopulations of AD patients.”

Eli Lilly has also made strides in the field. In March 2024, they reported Phase IIIb results for their IL-13 targeting monoclonal antibody in moderate-to-severe AD. This trial focused on people of color, a group disproportionately affected by the condition. Initial 16-week data revealed that more than two-thirds of participants on lebrikizumab showed at least a 75% improvement in disease extent and severity.

Eli Lilly faced a setback in October 2023 when the FDA rejected their BLA for lebrikizumab due to issues with a third-party contract manufacturer. However, Lilly resubmitted the BLA in April 2024, and a decision is expected later in the year.

In June 2023, Proteologix was announced as the North American winner of MilliporeSigma’s 12th Advance Biotech Grant program. The startup was recognized for its strong pipeline targeting autoimmune and inflammatory diseases, as well as oncology indications, which affect a significant patient population.