Johnson & Johnson agrees to acquire Yellow Jersey Therapeutics

On May 28, 2024, Johnson & Johnson (JNJ) announced it is entering into a definitive agreement with Numab Therapeutics to acquire its wholly-owned subsidiary, Yellow Jersey Therapeutics (YJT). The acquisition will proceed in an all-cash transaction valued at approximately $1.25 billion.

According to the JNJ press release, this acquisition offers the company access to YJT’s investigational, first-in-class bispecific antibody, NM26. This antibody is entering phase 2 clinical trials to treat atopic dermatitis by targeting the IL-4R alpha subunit and Il-31 pathways. The IL-4R alpha subunit pathway typically triggers Th2-mediated skin inflammation, while IL-31 impacts skin itchiness. NM26 is thought to interfere with these pathways, preventing itching and inflammation.

“To deliver durable, symptom-free remission for the millions of people living with AD, our medicines need to be tailored to target multiple disease-driving pathways in different patient subpopulations,” said David Lee, Global Immunology Therapeutic Area Head, Johnson & Johnson Innovative Medicine, in the company press release. “That’s why we are committed to developing differentiated bispecifics that combine the targeting of two distinct disease-driving pathways. NM26 has the potential to deliver a treatment specifically for patients who have inflamed skin associated with intense itching.”

The National Eczema Association notes that approximately 9.6 million children in the United States have atopic dermatitis; one-third of those patients have moderate-to-severe versions of the condition. Additionally, the organization notes that the prevalence of pediatric AD has increased from 8% to 15% since 1997.

Additional insights reveal that approximately 7.3% of adults in the US — 16.5 million individuals — have the condition, with 40% experiencing moderate-to-severe disease.

The condition's existing and seemingly rising prevalence makes this acquisition an appealing addition to JNJ’s drug portfolio.

“Our goal is to deliver transformational efficacy for all patients living with immune-mediated diseases like AD,” added Candice Long, Worldwide Vice President of Immunology at Johnson & Johnson. “Our investment in differentiated bispecifics is the next chapter in our impactful Immunology legacy. It reinforces our commitment to address unmet medical needs by leveraging patient insights and our deep disease expertise.”

The transaction will be cleared under the Hart-Scott-Rodino Antitrust Improvements Act, and other closing conditions are expected to be satisfied by the end of 2024.