Johnson & Johnson announced on Thursday that its acquisition of Yellow Jersey Therapeutics will result in a cost impact of approximately 1.25 billion US dollars.
According to Zhitong Finance, Johnson & Johnson announced on Thursday that its recent acquisition of Yellow Jersey Therapeutics will have a cost impact of approximately 1.25 billion US dollars on its third quarter and full year performance in 2024. When announcing the financial impact of the deal, the company stated that the transaction is considered an asset acquisition and will result in approximately $1.25 billion in research and development (R&D) expenditures this year. It will also dilute earnings per share by about $0.56 and $0.10 on an adjusted basis for 2024 and 2025 respectively. Johnson & Johnson plans to revise its guidance to reflect the impact in 2024, with its second quarter 2024 financial report expected to be released next week.
In May this year, Swiss pharmaceutical company Numab Therapeutics announced that Johnson & Johnson had agreed to acquire its subsidiary Yellow Jersey Therapeutics for $1.25 billion in cash, including the development of eczema candidate drug NM26 and other business. According to the agreement, Johnson & Johnson will have the rights to develop, manufacture, and commercialize NM26 for the treatment of atopic dermatitis and other targeted diseases. The transaction was expected to be completed in the second half of 2024.
Johnson & Johnson announced on Thursday that the transaction has been successfully completed, and a separate agreement has been reached with Kaken Pharmaceutical Co., Ltd. to ensure the right to use NM26 in the Asia-Pacific region.