The latest news on mergers and acquisitions featuring Boehringer Ingelheim/ Nerio Therapeutics, Johnson & Johnson/Yellow Jersey, Otsuka/Jnana Therapeutics, AstraZeneca/Amolyt Pharma, and Merck Animal Health/Elanco. Highlights below. 

* BI To Acquire Nerio Therapeutics in $1.3-Bn Deal 
* J&J Completes $1.25-Bn Acquisition of Yellow Jersey 
* Otsuka to Acquire Jnana Therapeutics in $1.13-Bn Deal
* AstraZeneca Completes $1.1-Bn Acquisition of Amolyt Pharma
* Merck Animal Health Acquires Elanco’s Aqua Business 

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BI To Acquire Nerio Therapeutics in $1.3-Bn Deal 
Boehringer Ingelheim (BI) has agreed to acquire Nerio Therapeutics, a La Jolla, California-based bio/pharmaceutical company, in a deal worth up to $1.3 billion. 

The pending acquisition will add preclinical programs to BI’s immuno-oncology portfolio. Nerio’s small-molecules drugs inhibit the protein tyrosine phosphatases, N1 and N2 (PTPN1 and PTPN2), which act as immune checkpoints. Through this mechanism, PTPN1/2 inhibition can activate the immune system to fight cancer cells. Nerio’s small-molecule inhibitors have the potential to act as a single-agent therapy as well as in combination with BI’s cancer therapies already being developed in-house. 

Source: Boehringer Ingelheim 

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J&J Completes $1.25-Bn Acquisition of Yellow Jersey 
Johnson & Johnson (J&J)  has completed its $1.25-billion acquisition of Yellow Jersey, a demerged subsidiary of Numab Therapeutics, a Horgen, Switzerland-based bio/pharmaceutical company, to secure the global rights to NM26, an investigational bispecific antibody.  

NM26, which is ready to enter Phase II studies in atopic dermatitis, targets two clinically proven pathways, IL-4R alpha subunit (IL-4Rα) and IL-31, which trigger Th2-mediated skin inflammation and skin itch, respectively. 

J&J acquired Yellow Jersey Therapeutics, which includes the NM26 program, and which was formed through a demerger with Numab. J&J entered a separate agreement with Kaken Pharmaceutical, a Tokyo-based company of bio/pharmaceuticals, medical devices, agrochemicals, and feed additives, to secure rights in the Asia Pacific Region. 

Source: Johnson & Johnson 

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Otsuka to Acquire Jnana Therapeutics in $1.13-Bn Deal 
Otsuka Pharmaceutical has agreed to acquire Jnana Therapeutics, a Boston-based bio/pharmaceutical company, in a deal worth up to $1.13 billion ($800 million upfront and $325 million in milestone payments).  

Jnana has a proprietary chemoproteomics platform for drug discovery to enable the screening of binding sites across the surface of a target protein and the identification of small molecules that elicit specified pharmacologies. While the platform is not limited to any specific therapeutic area, the company has built a position by concentrating on phenylketonuria (PKU), a rare inherited disorder that causes an amino acid, phenylalanine, to accumulate to abnormally high levels in the blood, and autoimmune diseases, where small-molecule drug discovery has been challenging. Jnana’s technology has generated JNT-517, an allosteric small-molecule inhibitor of SLC6A19, an SLC (solute carrier) that regulates amino-acid reabsorption in the kidney, for treating PKU.  In the autoimmune disease field, the company is pursuing small-molecule drug discovery for drug targets such as interferon regulatory factor 3 (IRF3), a master transcription factor for the production of interferon. 

Under the agreement, Otsuka will pay $800 million to the shareholders of Jnana upon completion of the acquisition, as well as up to an additional $325 million in development and regulatory milestones.  

The Boards of Directors of both Otsuka and Jnana have approved this acquisition. The acquisition will be implemented by merging a special purpose company for this acquisition into Jnana Therapeutics, with Jnana remaining as the surviving company. The acquisition is expected to be completed in the third quarter of 2024, subject to customary closing conditions. Upon completion of the acquisition, Jnana will operate as a wholly owned subsidiary of Otsuka in Boston and will continue its research and development.  

Source: Jnana Therapeutics 

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AstraZeneca Completes $1.1-Bn Acquisition of Amolyt Pharma 
AstraZeneca has completed its acquisition of Amolyt Pharma, a clinical-stage bio/pharmaceutical company, in a $1.1-billion deal ($800 million upfront and $250 million in milestone payments). 

Amolyt’s lead candidate is eneboparatide, a Phase III investigational therapeutic peptide for treating hypoparathyroidism, a rare disease in which the body produces abnormally low levels of the parathyroid hormone (PTH), which is key to regulating and maintaining a balance of calcium and phosphorus in the body.    

Under the agreement, AstraZeneca acquired all of Amolyt Pharma’s outstanding shares for a total consideration of up to $1.05 billion, on a cash and debt free basis. This includes $800 million upfront at deal closing, plus the right for Amolyt Pharma’s shareholders to receive an additional contingent payment of $250 million payable upon achievement of a specified regulatory milestone.  

Source: AstraZeneca 

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Merck Animal Health Acquires Elanco’s Aqua Business 
Merck Animal Health, a division of Merck & Co., has completed its acquisition of the aqua business of Elanco Animal Health The acquisition bolsters Merck Animal Health’s position in the aqua industry in fish health, welfare and sustainability in aquaculture, conservation, and fisheries. 

As a result of the acquisition, Merck Animal Health now owns products such as Clynav, a DNA-based vaccine that protects Atlantic salmon against pancreas disease and Imvixa, an anti-parasitic sea-lice treatment and water-treatment product for warm water production, complementing Merck Animal Health’s vaccine portfolio. 

Source: Merck & Co.