Johnson & Johnson (J&J) has announced its plans to acquire Proteologix for $850 million in cash, aiming to access the privately held company's experimental treatments for atopic dermatitis.

Proteologix's antibody PX128 is poised to enter early-stage development for moderate to severe atopic dermatitis and moderate to severe asthma. Additionally, its other antibody, PX130, is undergoing preclinical development for moderate to severe atopic dermatitis. Atopic dermatitis is a chronic inflammatory skin condition characterized by dryness, itchiness, and susceptibility to skin infections due to damage to the skin barrier.

J&J's own experimental atopic dermatitis drug is currently in mid-stage development, as indicated on its website. The acquisition of Proteologix is anticipated to be finalized in the coming months, pending antitrust clearance and other customary closing conditions.

Moreover, the deal includes the potential for an additional milestone payment, providing further incentive for J&J to pursue this acquisition.