By Maria Armental
Johnson & Johnson will develop and sell Achillion
Pharmaceuticals Inc.'s hepatitis C drugs and invest $225 million in
Achillion, in a combined deal valued at about $1.1 billion, the
companies said on Tuesday.
Under the exclusive global collaboration and licensing
agreement, Johnson & Johnson's Janssen Pharmaceuticals Inc.
subsidiary becomes responsible for all costs of developing and
selling the treatment regimens.
Achillion, meanwhile, is eligible for tiered royalty percentages
ranging from the mid-teens to low-twenties on future world-wide
sales, along with development, regulatory and sales milestones.
An initial regimen the companies plan to pursue features one of
Achillion's candidates that has been granted fast-track status by
the U.S. Food and Drug Administration for treatment of chronic
hepatitis C and is currently in mid-stage clinical studies.
The FDA assigns fast-track status to drugs and vaccines that are
meant to address serious conditions and unmet medical needs.
Achillion's shares fell 4% to $10.20, while Johnson &
Johnson's edged up to $103.98 in late trading.
Write to Maria Armental at maria.armental@wsj.com
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