Johnson & Johnson Completes Acquisition of Yellow Jersey Therapeutics

NEW BRUNSWICK, NJ–(BUSINESS WIRE)–Johnson & Johnson¹ (NYSE: JNJ) announced today that it has successfully completed acquisition of Yellow Jersey, a spin-off subsidiary of Numab Therapeutics to secure global rights to NM26, Novel, Investigational, First-in-Class Bispecific Antibody in an All-Cash Transaction Valued at Approximately $1.25 Billion, Announced May 28, 2024

NM26, which is poised to enter Phase 2 testing in atopic dermatitis (AD), targets two clinically proven pathways, the IL-4R receptor alpha subunit (IL-4Rα) and IL-31, which respectively trigger Th2-dependent skin inflammation and itch.

“NM26 was designed to help diverse subpopulations of patients by targeting two disease-causing pathways, which is key to treating a heterogeneous disease like Alzheimer’s,” he said. David Lee, Global Immunology Therapeutic Area Head, Johnson & Johnson Innovative Medicine. “We are excited about the potential this represents to change the standard of care for AD, as well as other inflammatory skin diseases involving Th2 inflammation and pruritus.”

Alzheimer’s disease is the most common inflammatory skin disease². It causes itching and inflammation that is worse when scratched. It can lead to an increased risk of skin infections, skin pain, difficulty sleeping, anxiety, stress, depression, and even an increased risk of suicide.

“Nearly three-quarters of people with Alzheimer’s disease do not achieve remission with currently available treatments.³. Unmet needs are high and we need to do more for patients,” he said. Candice Long, Vice President, Worldwide Immunology, Johnson & Johnson. “Our investment in NM26 and other bispecific antibodies is another important step toward our mission of lasting, symptom-free remission for all patients living with immune-mediated diseases.”

¹ Legal entity, Cilag Holding AG
² https://pubmed.ncbi.nlm.nih.gov/27690741/
³ https://pubmed.ncbi.nlm.nih.gov/27690741/

About atopic dermatitis

Atopic dermatitis (AD), also known as eczema, is a chronic inflammatory skin disease that affects more than 9.6 million children and 16.5 million adults in the United States. AD is characterized by an overactive immune system that damages the skin barrier, leaving it dry, itchy, and prone to rashes. AD can come and go throughout life, and patients can experience severe flare-ups. The condition can cause poor quality of life, causing social stigma that affects the ability to interact with family and friends, disrupting sleep due to intense itching and/or skin pain, and leading to anxiety, stress, and depression with an increased risk of suicide.

About the contract

Under the terms of the transaction, Johnson & Johnson (the Company) acquired Yellow Jersey Therapeutics, which includes the NM26 program and was formed through a spin-off from Numab. J&J entered into a separate agreement with Kaken Pharmaceutical to secure rights in the Asia Pacific region.

Under U.S. GAAP, the transaction is being accounted for as an asset acquisition, resulting in an ongoing R&D charge of approximately $1.25 billion in the third quarter of 2024 and full-year adjusted dilution to earnings per share of $0.56 in 2024 and approximately $0.10 in 2025. The impact for 2024 will be reflected in updated guidance during the second quarter earnings conference call on July 17, 2024.

About Johnson & Johnson

At Johnson & Johnson, we believe that health is everything. Our strength in healthcare innovation enables us to build a world where complex diseases are prevented, treated and cured, where treatments are smarter and less invasive, and solutions are personal. With our expertise in innovative medicine and medical technology, we are uniquely positioned to innovate across the spectrum of healthcare solutions today to deliver breakthrough solutions tomorrow and have a profound impact on human health. Learn more at https://www.jnj.com/ or www.janssen.com/johnson-johnson-innovative-medicine. Follow us on @JanssenUS and @JNJInnovMed. Janssen Research & Development, LLC and Janssen Biotech, Inc. are Johnson & Johnson companies.