Autoimmune Therapeutics Heat Up: Two $1B+ Deals in One Day Highlight Strong Industry Momentum

On May 28, Johnson & Johnson announced a definitive agreement with Numab Therapeutics. 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 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.

Numab Founder and CEO Dr. David Urech stated, "We are very pleased to have reached this agreement with Johnson & Johnson. We believe they can rapidly advance the development of NM26 to provide better treatments for patients with atopic dermatitis and other diseases. This transaction validates the value of our discovery and engineering platforms, as well as the potential to deliver a variety 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 is 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 in 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 field witnessed two transactions exceeding $1 billion in a single day. In addition to Johnson & Johnson's acquisition, earlier the same day, Japanese chemical company Asahi Kasei announced a $1.06 billion acquisition of Swedish biotechnology company Calliditas, gaining access to its core pipeline Nefecon (budesonide extended-release capsules for the treatment of IgA nephropathy), among others.

Capture Potential "First-in-Class" Bispecific Antibody Therapy for the Treatment of Atopic Dermatitis

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 influences skin itching and subsequent scratching. Current treatments do not provide 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 triggering Th2-mediated skin inflammation and the latter affecting skin itching and subsequent scratching that exacerbates the condition. In addition to potentially changing the standard of care for AD, NM26 may also be effective for other inflammatory skin diseases involving Th2 inflammation and pruritus.

This bispecific antibody was discovered and designed using Numab's unique λ-Cap™ and MATCH™ technology platforms. Leveraging these technology platforms, Numab is building a highly differentiated pipeline of multispecific 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, already completing 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 now the acquisition of Yellow Jersey Therapeutics.

Moreover, Johnson & Johnson has also expressed interest in bispecific antibodies, a class of drugs capable of simultaneously targeting two different sites, which are increasingly gaining favor among large pharmaceutical companies. Currently, Johnson & Johnson has already launched the dual-target multiple myeloma drugs Talvey and Tecvayli on 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 deliver transformative efficacy for all patients suffering from immune-mediated diseases, such as AD. Investment in differentiated bispecific antibodies will open a new chapter in the field of immunology."

The Self-Payment Track is Exploding in Popularity,

Completed Over $5 Billion in Transactions Within a Month

In recent days, the autoimmune赛道 (self-immune track) has been unusually active, with significant transactions frequently occurring, showcasing its popularity. Only in May so far, there have been four completed并购 (M&A) transactions totaling over 5 billion US dollars. Apart from Johnson & Johnson's two self-immune acquisitions and Japanese 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 a CD38 antibody 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 contributor to the global growth of autoimmune drugs.

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 * opportunities.

In addition to Johnson & Johnson and AbbVie, major pharmaceutical companies such as Sanofi, GlaxoSmithKline, Novartis, and Vertex Pharmaceuticals are also focusing on this field. Sanofi's IL-4R (Th2) and Johnson & Johnson's IL-12/IL-23 (Th17) have become blockbuster drugs worth billions of dollars, with IL-17 and IL-23 giving rise to multiple heavy-hitting products. Johnson & Johnson’s two recent acquisitions also entered 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 made autoimmune inflammation its *core focus, carrying out several consecutive transactions. Lilly continued its layout in IL-17 by acquiring DICE to explore small molecule alternatives.

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

References:

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

[This article is authorized for release by Arterial Network, a partner of Investment界. This platform only provides information storage services.] If you have any questions, please contact (editor@zero2ipo.com.cn) for Investment界 to handle.