Johnson & Johnson to Acquire Proteologix for Atopic Dermatitis Leadership

NEW BRUNSWICK, NJ (May 16, 2024) – Johnson & Johnson (NYSE: JNJ) has confirmed its acquisition agreement with Proteologix, Inc., a biotech firm specializing in bispecific antibodies for immune-mediated diseases. The agreement involves an $850 million cash transaction, with potential additional milestone payments.

Proteologix’s pipeline includes PX128 and PX130, two bispecific antibodies. PX128, which targets IL-13 and TSLP, is set to begin phase 1 trials for moderate to severe atopic dermatitis (AD) and asthma. PX130, targeting IL-13 and IL-22, is in preclinical development for moderate to severe AD. These diseases are complex, involving multiple pathways, and bispecific antibodies like PX128 and PX130 could offer improved efficacy and remission rates by targeting multiple pathways simultaneously.

PX128 works by inhibiting IL-13-mediated Th2 skin inflammation, a key pathway in AD and asthma, and TSLP, which triggers tissue inflammation. PX130 similarly inhibits IL-13-mediated inflammation but also targets IL-22 to restore the skin barrier and prevent inflammation from environmental triggers. Both antibodies are designed for infrequent dosing, which is more convenient for patients, and show promise in providing comprehensive treatment for AD and asthma.

David Lee, Global Immunology Therapeutic Area Head at Johnson & Johnson Innovative Medicine, emphasized the potential impact of these treatments. He noted that atopic dermatitis is the most prevalent inflammatory skin condition, affecting over 100 million adults worldwide. He pointed out that 70% of patients using current standard therapies do not achieve remission. Existing treatments either target a single pathway or have broad immunosuppressive effects, leading to safety concerns. Lee believes that PX128 and PX130 offer an opportunity to achieve higher efficacy by targeting different combinations of disease-driving pathways in heterogeneous subpopulations of AD patients.

In addition to PX128 and PX130, the acquisition brings other bispecific antibody programs to Johnson & Johnson, enhancing its ability to develop novel treatments across various diseases. Candice Long, Worldwide Vice President, Immunology at Johnson & Johnson, highlighted the strategic importance of integrating Proteologix’s antibodies into their portfolio. She emphasized the company's commitment to improving the lives of those with AD and other immune-mediated diseases by providing more targeted treatment options aimed at achieving durable, symptom-free remission.

Atopic dermatitis, commonly known as eczema, is a chronic inflammatory skin condition affecting over 102.8 million children and 101.3 million adults globally. It involves an overactive immune response that leads to skin inflammation, dryness, itching, and susceptibility to infections. The condition significantly impacts quality of life, disrupting social interactions, sleep, and mental health, and increasing the risk of anxiety, stress, depression, and suicide.

Asthma, a chronic lung disease, affects 262 million people worldwide. Symptoms include coughing, wheezing, and difficulty breathing, caused by airway inflammation and narrowing. Both genetic and environmental factors contribute to asthma, with triggers like allergens and infections exacerbating symptoms. Severe asthma attacks can be life-threatening, requiring emergency medical attention. Although asthma can be managed with medication and avoiding triggers, it remains incurable, significantly affecting patients' quality of life and healthcare resources.

The acquisition of Proteologix by Johnson & Johnson is expected to be completed by mid-2024, pending antitrust clearance and other standard conditions. The transaction will be treated as a business combination, with no anticipated impact on Johnson & Johnson’s previously disclosed 2024 adjusted EPS guidance range.

Johnson & Johnson is a leader in healthcare innovation, focused on preventing, treating, and curing complex diseases. Their comprehensive approach spans innovative medicine and MedTech, aiming to deliver groundbreaking healthcare solutions and significantly improving human health.