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Johnson & Johnson completed its previously announced, $850 million acquisition of Proteologix Inc. The biotech focuses on bispecific antibodies for immune-mediated diseases.

A June 21 press release announced the closing. According to the New Brunswick-based pharma giant, the transaction boosts its position to address atopic dermatitis.

As part of the all-cash agreement, J&J assumes ownership of a collection of bispecific meds in development for moderate to severe atopic dermatitis.

Also referred to as eczema, atopic dermatitis (AD), causes skin inflammation and damage to the skin barrier, leaving it itchy, dry and prone to infections. The chronic inflammatory skin disorder affects more than 102.8 million children and 101.3 million adults worldwide.

According to J&J, current therapies fall short of delivering relief. The company said 70% of patients do not achieve a symptom-free remission.

The deal adds Proteologix’s AD treatments, PX-128 and PX-130. Additionally, J&J takes over “other bispecific antibody programs” that could be applied to additional diseases. As part of the deal, Proteologix is eligible for an additional milestone payment, the companies said.

David Lee, global immunology therapeutic head for J&J, said a statement, “We look forward to continuing the development of PX-128 and PX-130 alongside the Proteologix team as they join Johnson & Johnson.”

“These two bispecific antibodies have the potential to become best in disease therapeutics for people living with moderate to severe atopic dermatitis (AD) and asthma by targeting multiple disease-driving pathways. We are thrilled to start integrating them into our industry leading Immunology portfolio,” Lee added.

Making deals

Candice Long, J&J’s worldwide vice president of immunology, stated, “The Proteologix team has developed a promising early pipeline of bispecific antibodies that are a strong complement and strategic fit for our innovation strategy.”

“This acquisition is yet another example of our ongoing commitment to redefine the standard of care for immune mediated diseases,” Long said.

For J&J, it marks the company’s second acquisition of the year. In March, it closed on a $2 billion deal to buy clinical-stage biopharmaceutical Ambrx Biopharma of La Jolla, Calif.

Johnson & Johnson also has another acquisition in the works targeting eczema therapy. The company announced plans last month to pay $1.25 billion for the rights to an experimental eczema treatment.

Developed by Numab Therapeutics, NM23 targets two proteins that cause the itchiness and inflammation associated with atopic dermatitis. According to J&J, that gives it the potential to transform the standard of care for the condition.

Subject to antitrust clearance and other customary closing conditions, J&J expects to complete the transaction by the second half of 2024.