12:40 PM EDT, 05/28/2024 (MT Newswires) -- Johnson & Johnson ( JNJ ) agreed to buy Numab Therapeutics' subsidiary Yellow Jersey Therapeutics and global rights to its investigational skin disease treatment in an all-cash deal valued at $1.25 billion.

The healthcare products conglomerate will gain full rights to develop, manufacture and commercialize NM26, Numab's treatment for atopic dermatitis, an inflammatory skin disease. Shares of Johnson & Johnson ( JNJ ) shares were down 1.3% in Tuesday midday trade.

"Our goal is to deliver transformational efficacy for all patients living with immune mediated diseases like AD," Candice Long, Johnson & Johnson's ( JNJ ) worldwide vice president of immunology, said in a statement. "Our investment in differentiated bispecifics is the next chapter in our impactful immunology legacy."

With roughly 70% of patients not achieving remission in atopic dermatitis with the available therapies, J&J said NM26 has the potential to offer "distinctive benefits versus existing treatments." NM26 is ready to advance to phase 2 clinical development, according to Numab.

The experimental product could also help address other skin diseases involving Th2 inflammation and itch. Johnson & Johnson ( JNJ ) will be able to develop and commercialize follow-on indications of NM26.

"We are thrilled to enter into this agreement with J&J and are confident they will be able to rapidly advance the development of NM26 for patients in need of a better treatment for atopic dermatitis and other conditions," Numab Chief Executive David Urech said in a separate statement.

The transaction is expected to close in the second half of 2024, subject to regulatory clearance.

J&J is focused on developing bispecifics that combine the targeting of two distinct disease-driving pathways, J&J Global Immunology Therapeutic Area Head David Lee said. Earlier this month, Johnson & Johnson ( JNJ ) announced a deal to buy Proteologix and its investigational atopic dermatitis and asthma treatment for $850 million in cash.

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