Janssen Biotech’s Acquisition of Bermekimab

Cravath advised Janssen Biotech in connection with the transaction.

Janssen Biotech, Inc., a Janssen Pharmaceutical Company of Johnson & Johnson, entered into a definitive agreement to acquire all rights to the investigational compound bermekimab from XBiotech Inc.

Bermekimab is an anti-IL-1alpha monoclonal antibody in Phase 2 development for the treatment of atopic dermatitis and hidradenitis suppurativa, which are chronic, immune-mediated skin diseases.

Under terms of the agreement, Janssen will assume responsibility for the clinical program, working closely with XBiotech as it completes the ongoing Phase 2 studies in atopic dermatitis and hidradenitis suppurativa. Janssen will pay XBiotech a purchase price of $750 million for the rights to bermekimab; should Janssen pursue bermekimab indications outside of dermatology, XBiotech may be eligible to receive additional payments upon the receipt of certain commercialization authorizations.

The Cravath team is led by partners Robert I. Townsend III (Picture) and Jenny Hochenberg and includes associates Sanjay Murti, Matthew L. Ploszek, Jin-Kyu Baek and Carly J. Goeman on M&A matters; partner J. Leonard Teti II and associate Andrew T. Davis on tax matters; partner David J. Kappos and associates F. Adam Abulawi and Somi A. Umolu on intellectual property matters; partner Jonathan J. Katz and associates Matthew J. Bobby and Sally Ye on executive compensation and benefits matters; partner Matthew Morreale on environmental matters; and practice area attorney Brian M. Budnick on real estate matters.

Involved fees earner: Adam Abulawi – Cravath Swaine & Moore; Jin-Kyu Baek – Cravath Swaine & Moore; Matthew Bobby – Cravath Swaine & Moore; Brian Budnick – Cravath Swaine & Moore; Andrew Davis – Cravath Swaine & Moore; Carly J. Goeman – Cravath Swaine & Moore; Jenny Hochenberg – Cravath Swaine & Moore; David Kappos – Cravath Swaine & Moore; Jonathan J. Katz – Cravath Swaine & Moore; Matthew Morreale – Cravath Swaine & Moore; Sanjay Murti – Cravath Swaine & Moore; Matthew Ploszek – Cravath Swaine & Moore; J. Leonard Teti II – Cravath Swaine & Moore; Robert Townsend III – Cravath Swaine & Moore; Somi Umolu – Cravath Swaine & Moore; Sally Ye – Cravath Swaine & Moore;

Law Firms: Cravath Swaine & Moore;

Clients: Janssen Biotech, Inc.;

Author: Ambrogio Visconti