J&J Acquires Proteologix for $850M to Enhance Atopic Dermatitis Pipeline

Johnson & Johnson has announced an agreement to purchase Proteologix for $850 million in cash. This acquisition brings Johnson & Johnson a portfolio of innovative bispecific antibodies, primarily aimed at treating atopic dermatitis. The most advanced asset in this portfolio is PX128, which targets the molecules IL-13 and TSLP. PX128 is scheduled to begin Phase I clinical trials, focusing on patients with moderate-to-severe atopic dermatitis and asthma.

In addition to PX128, Proteologix is also developing PX130, another preclinical asset targeting moderate-to-severe atopic dermatitis. PX130, like PX128, targets IL-13 but also blocks IL-22. This dual targeting aims to restore the skin barrier and reduce inflammation caused by environmental triggers such as allergens. Both PX128 and PX130 are designed for infrequent dosing, which could be beneficial for patient compliance.

David Lee, the global head of the immunology therapeutic area at Johnson & Johnson Innovative Medicine, commented on the acquisition's potential. He emphasized the opportunity to achieve "best-in-disease efficacy" with both PX128 and PX130, as they target different combinations of disease-driving pathways. The acquisition also includes an additional undisclosed milestone payment to Proteologix and is expected to be finalized by mid-year.

For Johnson & Johnson, this acquisition signifies a renewed focus on immunology, following a period of relatively quiet M&A activity in its pharmaceutical division. This deal also suggests that Johnson & Johnson is ramping up its efforts in strategic acquisitions. Earlier this year, the company acquired Ambrx Biopharma, a developer of antibody-drug conjugates, for $2 billion. Industry analysts have speculated that Johnson & Johnson's next significant move might be in the medical device sector rather than in innovative medicines.

This deal places Johnson & Johnson in a competitive position in the field of anti-TSLP antibodies. This week, Blackstone Life Sciences pledged up to $300 million to the newly established biotech company Uniquity Bio, aimed at developing the anti-TSLP candidate solrikitug. Furthermore, in January, GSK expanded its portfolio by acquiring Aiolos Bio and its mid-stage anti-TSLP candidate AIO-001 for up to $1.4 billion. This indicates a growing interest and investment in the anti-TSLP antibody space.

In summary, Johnson & Johnson's acquisition of Proteologix for $850 million enhances its immunology portfolio, particularly in the realm of bispecific antibodies targeting atopic dermatitis and asthma. With lead assets PX128 and PX130 set to enter clinical and preclinical trials respectively, and a potential for infrequent dosing, the company is positioning itself to offer innovative treatments. This acquisition is part of a broader strategy to strengthen its immunology focus and signals a potential increase in deal-making activities.