J&J bets $1.75 billion on virology
pharmafile | October 1, 2014 | News story | Research and Development, Sales and Marketing | AL-8176, Alios BioPharma, J&J, JJ, Janssen, sovaldi, viral
Johnson & Johnson has signed a deal to acquire Alios BioPharma, a privately-held company focussed on developing therapies for viral diseases, for around $1.75 billion in cash.
The acquisition will include Alios BioPharma’s portfolio of potential therapeutics for viral infections, including compound AL-8176 – an antiviral therapy currently in Phase II studies for the treatment of infants with respiratory syncytial virus (RSV).
“We are excited that this acquisition will enable us to explore treatment options for a number of viral infections, including RSV, the last of the major paediatric diseases with no available preventive therapy,” says William Hait, global head of R&D at Janssen, the drugs unit of Johnson & Johnson.
“AL-8176 complements our existing early stage portfolio for RSV which aims to prevent and treat this disease, the leading cause of acute lower respiratory infection in children under the age of five,” he adds.
There is already a drug on the market for RSV in the shape of MedImmune’s Synagis (palivizumab), which was making around $1 billion in peak sales for parent company AstraZeneca in 2010.
The firms say in a statement that the deal is expected to close during the fourth quarter of 2014.
“Alios BioPharma’s pipeline is closely aligned with our vision to continue to address important unmet medical needs through scientific innovation,” says Johan Van Hoof, global head of infectious diseases and vaccines at Janssen.
“This acquisition will allow us to combine their innovative compounds with our vast experience in viral diseases to deliver novel medicines and treatment options for patients worldwide.”
J&J already has a strong showing in virology and has raised its earnings forecast for the year for two consecutive quarters, with help from its hepatitis C drug Olysio (simeprevir), which generated $831 million in the second quarter.
The pill has led J&J’s drug business to become the company’s biggest unit, although lags behind the near $6 billion in sales from 2014 so far being led by Gilead’s hep C pill Sovaldi (sofosbuvir).
But analysts at EP Vantage say that whilst Janssen has ‘played up’ the group’s mid-stage antiviral projects in RSV it was ‘surprisingly quiet’ on what could be a more significant asset – a phase I-ready hepatitis C nucleotide analogue.
EP says: “With its second-generation hep C protease inhibitor Olysio forecast to fizzle almost as spectacularly as the first-generation Incivek and Victrelis, J&J is in need of new candidates to justify its investment in the space.
“So while the promise of Alios’s RSV candidate can partly explain this move, its much earlier stage hep C pipeline surely played a big role.”
Ben Adams
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