Johnson & Johnson (JNJ.US) said the acquisition of YellowJersey would have a $1.25bn impact on costs, reducing EPS by $0.56 in the year.
Johnson & Johnson (JNJ.US) announced on Thursday that its recently announced acquisition of Yellow Jersey Therapeutics would have a $1.25 billion impact on its 2024 third-quarter and full-year earnings. The company said the deal would be accounted for as an asset acquisition, with R&D expenses of about $1.25 billion this year. It would also dilute the company's adjusted earnings per share by about $0.56 in 2024 and $0.10 in 2025. The company plans to revise its guidance to reflect the 2024 impact, with its second-quarter 2024 earnings report expected next week.
In May, Swiss biotech company Numab Therapeutics announced that Johnson & Johnson agreed to buy its subsidiary Yellow Jersey Therapeutics for $1.25 billion in cash, including the development of a potential treatment for eczema, NM26. Under the deal, Johnson & Johnson would gain the right to develop, manufacture and commercialize NM26 for atopic dermatitis and other targeted diseases. The deal was expected to close in the second half of 2024.
Johnson & Johnson said on Thursday that the deal had closed and that it had reached a separate agreement with Kaken Pharmaceutical Co. to secure the rights to NM26 in the Asia-Pacific region.