NM26 is designed to inhibit the interleukin (IL)-4R and IL-31 cytokine pathways. Credits: Michael Vi/Shutterstock.com

Johnson & Johnson (J&J) has announced that it has completed the $1.25bn acquisition of Yellow Jersey Therapeutics.

Through the all-cash purchase, J&J is set to gain ownership of NM26, a novel bispecific antibody under development for the treatment of atopic dermatitis. The antibody is designed to inhibit the interleukin (IL)-4R and IL-31 cytokine pathways, thereby mediating and stabilising inflammatory response. The candidate is currently in a Phase I study (NCT05859724) evaluating single and multiple doses of the treatment.

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“NM26 is designed to help different subpopulations of patients by targeting two disease-driving pathways, which is key when treating a heterogeneous disease like AD,” said David Lee, Global Immunology Therapeutic Area Head, Johnson & Johnson Innovative Medicine in the 11 July press release.

Atopic dermatitis is a chronic inflammatory skin disorder that results in a damaged, itchy, and irritated skin barrier. As per J&J Worldwide Vice President, Immunology at Johnson & Johnson, Candice Long, the unmet need is high as the existing treatment landscape means that nearly three-quarters of patients with atopic dermatitis do not achieve remission.

NM26 was developed using Numab Therapeutics’ proprietary Multispecific Antibody-based Therapeutics by Cognate Heterodimerization (MATCH) technology, which is designed to develop highly potent and stable antibody Fv fragments. Yellow Jersey is a demerged spin-off of Numab that holds the rights to the NM26 program.

As per the initial acquisition announcement on 28 May, J&J will enter a separate agreement to secure rights to NM26 in the Asia Pacific region, as Numab had previously licensed rights to the treatment to Japan-based Kaken Pharmaceutical.

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In a bid to secure its position as a dermatology powerhouse, J&J has made several moves in the dermatology space, particularly for candidates being developed for the treatment of atopic dermatitis. In May, the pharma giant announced its $850m cash buyout of immune-mediated disease-focused biotech Proteologix for its bispecific antibody assets PX128 and PX130, which are designed to treat patients with moderate to severe manifestations of the chronic skin condition.