Johnson & Johnson to buy Proteologix for $850m

In one of the biggest moves for Johnson & Johnson since it doubled down on Johnsons, the pharmaceutical giant has reached an agreement to acquire Proteologix in an $850 million cash deal.

Under the Thursday agreement, J&J would acquire the privately held California-based biotech firm’s developments for atopic dermatitis, which is the most common chronic inflammatory skin disease, according to the National Library of Medicine.

Proteologix’s portfolio includes PX128, an antibody that treats moderate to severe atopic dermatitis (AD) and moderate to severe asthma, which is ready to enter Phase 1 development. The company also created PX130, a drug in preclinical development for moderate to severe AD.

Atopic dermatitis, also known as eczema, is a chronic disease that causes inflammation, redness, and irritation of the skin.

“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 heterogeneous subpopulations of AD patients,” David Lee, global immunology therapeutic area head for Johnson & Johnson Innovative Medicine, said in a press release.

The acquisition may also include an “additional milestone payment,” according to J&J.