Johnson & Johnson (JNJ.US) Continues to Advance Innovative Therapies: Partners with Sail to Develop In Vivo CAR-T and Secures $2.58 Billion Acquisition Option, Completes Acquisition of Firefly Bio

According to Jinse Finance APP, Johnson & Johnson (JNJ.US) disclosed two leading biopharmaceutical initiatives on Wednesday, July 29 local time. Johnson & Johnson announced a partnership with Sail Biomedicines to jointly advance in vivo CAR-T therapy projects and obtained an exclusive option to acquire Sail for $2.58 billion. On the same day, the company also announced the completed acquisition of Firefly Bio for $1 billion in cash, supporting the advancement of next-generation cancer innovation and research.

In a statement on Wednesday, Johnson & Johnson said that according to the terms of the agreement with Sail, the company will pay a total initial amount of $785 million, which includes a $465 million equity investment and an additional contingent payment of $140 million upon reaching certain development milestones. If Johnson & Johnson chooses to exercise its acquisition option, it will pay an additional $2.58 billion. Assuming this option is exercised, Johnson & Johnson expects the agreement will dilute its adjusted operating earnings per share and adjusted earnings per share by about $0.18 and $1.28, respectively, in 2026 and 2027.

Public information shows that Sail was established in October 2023 with the goal of developing a new type of RNA molecule that can act directly inside the body. The company is committed to developing a technology called in vivo CAR-T, which can reprogram immune cells.

In a statement in April this year, Sail said it is developing a set of nanoparticle delivery systems capable of delivering RNA to immune cells within the human body, offering the hope of curing autoimmune diseases.

Johnson & Johnson stated that in vivo CAR-T therapy is one of the most promising cutting-edge technologies in the medical field, with the potential to bring transformative treatments for various cancers and immune-mediated diseases. Unlike traditional cell therapies, Sail’s core pipeline and technology platform aim to directly reprogram immune cells within patients' bodies, with the goal of resetting the immune system and achieving long-lasting disease control. Through this collaboration, Johnson & Johnson and Sail will combine their professional strengths to advance innovative in vivo CAR-T therapy development. These therapies are expected to improve treatment outcomes for patients and ultimately provide curative solutions for those with complex diseases.

Meanwhile, Johnson & Johnson announced the completion of its acquisition of biotechnology company Firefly Bio. This transaction is expected to generate approximately $1 billion in R&D expenses in the third quarter of 2026. Johnson & Johnson also expects that the transaction will dilute adjusted operating earnings per share and adjusted earnings per share by about $0.46 and $0.08, respectively, in 2026 and 2027.

Johnson & Johnson said that after the acquisition of Firefly Bio, the company has further enhanced its next-generation antibody engineering capabilities and expanded its strategy to address complex cancer biology.

The continuous expansion of its new drug pipeline is supporting Johnson & Johnson’s performance growth. Financial reports show that Johnson & Johnson’s Q2 revenue reached $25.31 billion, a year-on-year increase of 6.6%, exceeding expectations; non-GAAP earnings per share were $2.90, also exceeding expectations. Among them, revenue from the innovative medicines segment increased by 7.8% year-on-year to about $16.4 billion.

Earlier this week, Johnson & Johnson also announced it had agreed to pay $5.5 billion to settle longstanding lawsuits related to ovarian cancer caused by its talcum powder products. This settlement will help resolve disputes that have troubled Johnson & Johnson for at least 15 years.

Eric Haas, Vice President of Litigation at Johnson & Johnson, said at the time: “Although we firmly believe that had the cases proceeded to trial, the company would have ultimately prevailed—as it has in the vast majority of cases so far—this settlement allows the company to put the matter fully behind us and continue to focus on our core mission of developing lifesaving medicines and medical devices.”

Since the beginning of this year, Johnson & Johnson’s share price has cumulatively increased by nearly 30%.