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Johnson & Johnson to acquire Proteologix for $850 million

Published 05/16/2024, 09:44 PM
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NEW BRUNSWICK, N.J. - Johnson & Johnson (NYSE: JNJ) announced it will acquire biotechnology firm Proteologix, Inc. for $850 million in cash, with the potential for additional milestone payments. The transaction, subject to customary closing conditions and antitrust clearance, is expected to close by mid-year 2024.

Proteologix specializes in bispecific antibodies for the treatment of immune-mediated diseases, including atopic dermatitis (AD) and asthma. Its portfolio features two promising bispecific antibodies, PX128 and PX130, targeting different disease pathways. PX128 is ready to enter phase 1 development, while PX130 is in preclinical stages.

The acquisition aims to address the unmet needs of patients with moderate to severe AD and asthma. Approximately 70% of AD patients do not achieve remission with current standard care therapies. Proteologix's bispecific antibodies are designed to target multiple pathways, potentially offering more effective treatment options.

David Lee, Global Immunology Therapeutic Area Head at Johnson & Johnson, expressed optimism for the best-in-disease efficacy for both PX128 and PX130, citing their ability to target distinct combinations of disease-driving pathways.

The merger also includes other bispecific antibody programs with applications across various diseases, enhancing Johnson & Johnson's ability to create novel treatments.

Candice Long, Worldwide Vice President of Immunology at Johnson & Johnson, emphasized the company's commitment to expanding its reach for individuals living with immune-mediated diseases by integrating Proteologix's bispecific antibodies into their pipeline.

AD, a chronic inflammatory skin disorder, affects over 100 million adults globally, while asthma impacts 262 million people worldwide. Both conditions can significantly deteriorate patients' quality of life.

The transaction is expected to be accounted for as a business combination, with no anticipated impact on Johnson & Johnson's 2024 adjusted EPS guidance range.

The information in this article is based on a press release statement from Johnson & Johnson.

InvestingPro Insights

As Johnson & Johnson (NYSE: JNJ) forges ahead with its strategic acquisition of Proteologix, Inc., the company's financial health and market position remain robust. With a formidable market capitalization of $367.43 billion, Johnson & Johnson is a heavyweight in the pharmaceutical industry. The company's commitment to innovation and patient care is reflected in its significant revenue growth over the last twelve months as of Q1 2024, recording a 10.57% increase.

An InvestingPro Tip worth noting is Johnson & Johnson's impressive track record of raising its dividend for 54 consecutive years, showcasing a strong commitment to shareholder returns. This is complemented by the company's low price volatility, making it a potentially attractive option for investors seeking stability in their portfolio.

On the financial front, the company's P/E ratio stands at 9.84, indicating that its stock could be undervalued compared to earnings. Johnson & Johnson also boasts a healthy dividend yield of 3.25%, which is a testament to its ability to generate cash flow and reward its shareholders consistently.

For those interested in further insights and tips, InvestingPro offers 10 additional InvestingPro Tips for Johnson & Johnson, which can be accessed at https://www.investing.com/pro/JNJ. To gain deeper analysis and metrics, use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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