December 2, 2014
By Riley McDermid, BioSpace.com Breaking News Editor
A subsidiary of Johnson & Johnson has decided not to continue with a licensing agreement with Astellas Pharma Inc for an experimental rheumatoid arthritis drug, just weeks before Phase III trials of the drug, ASP015K, were set to begin, the companies said Tuesday.
J&J’s Janssen Biotech unit paid $65 million in 2012 for the ex-Japan rights to the drug, but opting out now could cost Astellas $945 million for not meeting the milestone agreements specified in the deal. The oral JAK inhibitor had shown promise in controlling inflammatory signaling and treating the disease, but Janssen was apparently not impressed enough to continue the agreement.
“[The agreement} will end effective January 15, 2015. Janssen has exercised its right to terminate the license agreement, which was signed in 2012,” said Astellas in a statement. “Upon the effective date of termination, Astellas will regain all rights granted to Janssen. Astellas is now considering the future plan for ASP015K outside Japan, but will continue the Phase 3 development program which was initiated in Japan.”
For its part, Johnson & Johnson said that although the drug had completed two Phase IIb trials last year, it would be considering other options.
"[The decision] is the result of a strategic portfolio decision,” said the company in a statement, and reflects “the depth of our immunology pipeline and the exciting opportunities we see ahead.”
Other contenders in the field included Eli Lilly and Pfizer ‘s Xeljanz and Phase III baricitinib from Incyte.
