Johnson & Johnson plans to shell out $850 million to acquire Proteologix Inc. The privately held California biotech focuses on bispecific antibodies for immune-mediated diseases.

A May 16 press release announced the all-cash deal. The New Brunswick-based pharma giant said the move will add depth to its dermatology portfolio by boosting its position to address atopic dermatitis.

Protelogix’s lead asset is PX128. The antibody is ready to enter early-stage development for moderate to severe atopic dermatitis and moderate to severe asthma. The company’s roster also includes PX130, now in preclinical development for moderate to severe atopic dermatitis.

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

David Lee, global immunology therapeutic head for J&J, said a statement, “About 70% of patients using existing standard of care therapies do not reach remission. Current advanced therapies for AD either target a single pathway and have limited efficacy or are more broadly immunosuppressive, resulting in significant safety concerns.”

He went on to say, “We see an opportunity for best-in-disease efficacy for both PX128 and PX130 as each bispecific antibody targets two different combinations of disease driving pathways that are mediating the skin inflammation in heterogenous subpopulations of AD patients.”

Rapid realization

In addition to PX128 and PX130, J&J will get “other bispecific antibody programs” that could be applied to additional diseases. As part of the deal, Proteologix will be eligible for an additional milestone payment, the release said.

Proteologix founder, chairman and CEO David Shen said, “This agreement with Johnson & Johnson will allow us to rapidly develop and realize the full potential of our lead programs in atopic dermatitis, asthma, and other significant I&I diseases.”

Candice Long is J&J’s worldwide vice president of immunology. “Integrating Proteologix bispecific antibodies into our pipeline is an important first step in fulfilling our commitment to people living with AD,” she commented.

“We plan to continue expanding our reach and impact for people living with a wide variety of immune-mediated diseases, leveraging more targeted options for them to reach durable, symptom-free remission,” Long said.

Subject to antitrust clearance and other customary closing conditions, the acquisition expects to close in mid-2024.

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