Autoimmune Therapeutics Heat Up: Two $1B+ Deals in One Day Highlight Strategic Acquisitions of NM26 and Nefecon

On May 28, Johnson & Johnson announced a definitive agreement with Numab Therapeutics, under which Johnson & Johnson will acquire Yellow Jersey Therapeutics (YJT), a wholly-owned subsidiary of Numab, for approximately $1.25 billion in cash, to obtain global rights to NM26, a bispecific antibody drug for the treatment of atopic dermatitis.

Johnson & Johnson stated that the transaction is expected to be completed by the end of 2024. In addition, since Numab Therapeutics had previously licensed the rights of NM26 in the Asia-Pacific region to Kaken Pharmaceutical, Johnson & Johnson will "reach a separate agreement" with Kaken Pharmaceutical to acquire the rights of NM26 in the Asia-Pacific region.

Dr. David Urech, founder and CEO of Numab Therapeutics, stated: "We are very pleased to have reached this agreement with Johnson & Johnson. We believe they can rapidly advance the development of NM26, providing better treatments for patients with atopic dermatitis and other conditions. This transaction validates the value of our discovery and engineering platform, as well as the potential to deliver a range of novel multi-specific antibodies for large patient populations with significant unmet clinical needs. Our collaboration strategy has attracted biopharmaceutical partners such as Kaken, Eisai, Boehringer Ingelheim, and Ono Pharmaceutical from an early stage, which has been key to realizing the value of our platform and continuing to advance potentially transformative immunology and oncology programs."

David Lee, Global Head of Immunology Therapeutic Area at Johnson & Johnson Innovation Medicine, stated: "To provide lasting, symptom-free relief for millions of AD patients, our drugs are tailored to target multiple disease-driving pathways across different patient subgroups. This is why we are committed to developing differentiated bispecific drugs that combine targeting of two distinct disease-driving pathways. NM26 has the potential to offer an innovative treatment option specifically for patients with skin inflammation associated with intense itching."

Notably, the autoimmune sector completed two transactions exceeding $1 billion in a single day. In addition to Johnson & Johnson's acquisition, earlier that day, Japanese chemical company Asahi Kasei announced a $1.06 billion acquisition of Swedish biotechnology firm Calliditas Therapeutics, gaining access to its core pipeline Nefecon (budesonide extended-release capsules for the treatment of IgA nephropathy), among others.

NM26 is a first-in-class bispecific antibody for the treatment of atopic dermatitis (AD), which is about to enter Phase II clinical trials. Johnson & Johnson stated in a press release that, compared with existing treatment methods, NM26 can provide unique benefits and address key unmet needs of AD patients.

Atopic Dermatitis (AD) is the most common inflammatory skin disease, with different disease-driving mechanisms in different patient subgroups, exhibiting high heterogeneity. Among these, IL-4Rα triggers Th2-mediated skin inflammation, and IL-31 affects skin itching and subsequent scratching. Current treatments do not provide long-lasting, symptom-free relief, with approximately 70% of patients failing to achieve remission for the most common inflammatory skin conditions.

NM26 Targets IL-4Rα (Type I and Type II Receptors) and IL-31, the Former Triggers Th2-Mediated Skin Inflammation, and the Latter Affects Skin Itching and Subsequent Scratching That Worsens the Disease. In Addition to Potentially Changing the Standard of Care for AD, NM26 May Also Be Effective for Other Inflammatory Skin Conditions Involving Th2 Inflammation and Itching.

This bispecific antibody was discovered and designed using Numab's unique λ-Cap™ and MATCH™ technology platforms. Leveraging these technology platforms, Numab Therapeutics is building a highly differentiated pipeline of multi-specific drug discovery and development programs, primarily focused on the fields of inflammation and oncology.

Just two weeks ago, on May 16, Johnson & Johnson announced an $850 million all-cash acquisition of Proteologix, a company focused on bispecific antibodies for immune-mediated diseases, gaining access to several of its bispecific antibody therapies, including PX128 and PX130. PX128 is a bispecific antibody targeting IL-13/TSLP, which is about to enter Phase I clinical development for moderate to severe atopic dermatitis (AD) and moderate to severe asthma. PX130 is a bispecific antibody targeting IL-13/IL-22, currently in preclinical development for moderate to severe AD.

Johnson & Johnson is actively advancing its innovation strategy for the pharmaceutical sector, planning to launch 20 new drugs by 2030. Since proposing this plan in December of last year, Johnson & Johnson has focused on oncology and immunology research, reaching multiple deals in these two fields. These include the acquisition of cancer biotechnology company Ambrx Biopharma in January this year, the acquisition of immunotherapy developer Proteologix in May, and the recent acquisition of Yellow Jersey Therapeutics (YJT).

Moreover, Johnson & Johnson has also expressed interest in bispecific antibodies, a class of drugs that can simultaneously target two different sites and are increasingly gaining favor among large pharmaceutical companies. Currently, Johnson & Johnson has already launched two dual-target multiple myeloma drugs, Talvey and Tecvayli, in the market.

When announcing the deal with Protelogix, Johnson & Johnson stated that its goal was to build a "differentiated and complementary" bispecific drug portfolio in other disease areas. Now, Johnson & Johnson has added the NM26 drug, further enriching its bispecific antibody pipeline.

Candice Long, Vice President of Global Immunology at Johnson & Johnson, stated: "Our goal is to provide transformative efficacy for all patients suffering from immune-mediated diseases, such as AD. The investment in differentiated bispecific antibodies will open a new chapter in the field of immunology."

In recent days, the autoimmune赛道 (self-immune track) has been unusually active, with significant transactions occurring frequently, reflecting its booming state. Only in May so far, four并购 (M&A) transactions have been completed, with a total transaction value exceeding 5 billion US dollars. Apart from Johnson & Johnson's two self-immune acquisitions and Asahi Kasei's acquisition of Calliditas, on May 22nd not long ago, Biogen acquired HI-Bio for 1.8 billion US dollars. HI-Bio’s core pipeline is CD38 antibody, which is being developed for autoimmune适应症 (indications).

The autoimmune sector boasts vast market potential. According to Frost & Sullivan data, the global market size for autoimmune disease drugs is expected to reach $176 billion by 2030, with a compound annual growth rate (CAGR) of 3.6% from 2022 to 2030. Of this, the market size in China is projected to reach nearly $25 billion by 2030, representing a tenfold increase from 2020, making it a significant source of growth for the global autoimmune drug market.

The previous "blockbuster drug" Humira supported AbbVie's performance for more than a decade. In the new wave of autoimmune treatments, the Th2 and Th17 pathways have become the biggest opportunities.

In addition to Johnson & Johnson and AbbVie, major pharmaceutical companies such as Sanofi, GlaxoSmithKline, Novartis, and Vertex Pharmaceuticals are also strategically focusing on this field. Sanofi's IL-4R (Th2) and Johnson & Johnson's IL-12/IL-23 (Th17) have become blockbuster products worth billions of dollars, with IL-17 and IL-23 giving rise to multiple blockbuster drugs. Johnson & Johnson's recent two acquisitions were aimed at entering the Th2 iteration track through bispecific antibodies. GlaxoSmithKline acquired Aiolos for $1.4 billion to obtain a long-acting TSLP antibody, entering the Th2 track. Sanofi has positioned autoimmune inflammation as its absolute core, continuously engaging in several transactions. Eli Lilly acquired DICE to further layout IL-17 from the perspective of small molecule alternatives.

At the same time, in the Chinese market, local companies are also making rapid progress. According to statistics from VCBeat, nearly 80 "active players" in new drug development listed on the A-share and H-share markets, with 43 companies entering the autoimmune disease sector. Particularly in diseases such as atopic dermatitis, psoriasis, rheumatoid arthritis, and systemic lupus erythematosus, some domestic pharmaceutical companies have achieved initial R&D success.

References:

$5 Billion: Four M&A Deals in the Autoimmune Space Within a Month —— VCBeat