Royalty Pharma has made another play in the autoimmune space, this time crowning Johnson & Johnson as the beneficiary. Royalty and J&J have agreed to co-fund the development of a chronic autoimmune disease treatment to the tune of $500 million over the next two years.
The star of the deal is JNJ-4804, an antibody combo designed to target both interleukin‑23 (IL-23) and tumor necrosis factor (TNF). The molecule is currently in phase 2 studies for ulcerative colitis, psoriatic arthritis and Crohn’s disease, according to J&J’s website.
“Royalty Pharma has a strong track record of investing in immunology, beginning with early disease-modifying biologics including TNF inhibitors,” the company’s CEO Pablo Legorreta said in a March 30 release. “We believe JNJ-4804 holds substantial promise for patients with chronic immune-mediated diseases. We see this as an exciting opportunity that builds on our commitment to partnering with global biopharma companies.”
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Another example of that partnership commitment came in January, when Royalty offered up to $500 million to help Teva Pharmaceuticals develop an anti-IL-15 antibody for the autoimmune condition vitiligo. That deal continued a relationship between Royalty and Teva that began in 2023, when Royalty coughed up $100 million to bankroll a long-acting schizophrenia med.
Details of the J&J partnership are scant, though Royalty’s business model is to help fund drug development in return for a slice of the sales should a product ultimately make it to market. For example, the New York pharma proffered $275 million to Denali Therapeutics for the latter’s Hunter syndrome drug last December; now, that deal is set to pay off, with the FDA approving the medicine last Wednesday and Denali set to launch in the coming weeks.
