J&J to acquire Proteologix and its dual-targeting antibody drugs for $850M

Johnson & Johnson (J&J) has announced an agreement to acquire Proteologix, a biotechnology startup, for $850 million in cash. This acquisition will add a range of bispecific antibodies to J&J’s portfolio, aimed at treating immune diseases.

With this purchase, J&J will gain access to PX128, a drug poised to begin Phase 1 clinical trials for severe asthma and atopic dermatitis, commonly known as eczema. Additionally, Proteologix has another antibody, PX130, in the preclinical stage for treating severe eczema. Investors in Proteologix could receive additional milestone payments, though specific figures were not disclosed.

J&J expects the transaction to be completed by mid-year and has stated that it should not impact the company’s previously disclosed adjusted earnings per share for the year.

This acquisition underscores the growing interest in bispecific antibodies among pharmaceutical companies. These innovative drugs combine two mechanisms of action to tackle diseases. Specifically, PX128 works by inhibiting two proteins, IL-13 and TSLP, both of which play significant roles in inflammation. There are already approved drugs targeting these proteins, such as Adbry, which addresses eczema by targeting IL-13, and Tezspire, an asthma medication that blocks TSLP. Other companies like Sanofi and Uniquity Bio are also developing drugs aimed at these proteins for similar indications.

J&J noted that both PX128 and PX130 are designed to require infrequent dosing, providing added convenience for patients. While bispecific antibodies have predominantly been used in cancer treatments, there is a growing trend to explore their use in other medical conditions. For example, Zenas BioPharma recently raised $200 million to fund research on bispecific therapies for multiple sclerosis and lupus. According to the Food and Drug Administration, over 100 bispecific antibodies are currently in clinical development, with approved treatments including Hemlibra for hemophilia and Vabysmo for age-related vision loss.

J&J, which markets dual-targeting multiple myeloma drugs like Talvey and Tecvayli, views the Proteologix acquisition as a strategic move to expand its portfolio of unique bispecific antibodies. Proteologix’s pipeline includes other bispecific antibody programs that could potentially treat a variety of diseases.

This acquisition follows two significant deals by J&J earlier in the year. In January, J&J agreed to acquire cancer drug developer Ambrx Biopharma for $2 billion. Later, in April, the company announced a $13.1 billion deal to take over Shockwave Medical, a firm that produces medical devices designed to break up calcium deposits in coronary arteries using sound pressure waves.

By integrating Proteologix’s bispecific antibody technology, J&J aims to enhance its capabilities in the treatment of immune diseases and expand its reach in the pharmaceutical market. The move is part of a broader strategy to build a diverse and complementary portfolio of bispecific antibodies, potentially leading to new and innovative treatments for various conditions.