Healthcare giant Johnson & Johnson (NYSE:JNJ) is acquiring eczema drug developer Yellow Jersey (YJ) in a deal valued at $1.25 billion. YJ operates as a subsidiary of Swiss clinical-stage biotechnology firm Numab Therapeutics.
JNJ’s Focus on Skin Diseases
The strategic deal grants JNJ global rights to YJ’s investigational drug candidate NM26. This Phase 2-ready drug is a first-in-class bispecific antibody with the potential to treat atopic dermatitis (AD), a common inflammatory skin disease. Importantly, NM26 also shows promise as a treatment for other inflammatory skin diseases. Notably, nearly 70% of AD patients do not achieve complete remission with current treatments.
The transaction also highlights JNJ’s focus on immune-mediated diseases such as AD. The acquisition is subject to closing conditions and is expected to be completed in the second half of this year. Furthermore, JNJ will hold exclusive rights to develop, manufacture, and commercialize NM26 globally for AD and any follow-on indications.
Today’s announcement follows JNJ’s recent $850 million acquisition of Proteologix, which also granted access to two drug candidates for treating atopic dermatitis and asthma.
Is JNJ Stock a Buy, Sell, or a Hold?
JNJ’s M&A moves come amid a nearly 5% decline in its share price so far this year. Overall, the Street has a Moderate Buy consensus rating on the stock, alongside an average JNJ price target of $176.38.
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