J&J's $818 Million Bet Unlocks New Path for CRISPR Therapies
Johnson & Johnson strikes an up to $818 million deal with Locus Biosciences to develop a unique CRISPR technology that destroys harmful bacterial DNA instead of editing it. The partnership focuses on treating respiratory and other organ infections while preserving the patient's healthy microbiome.
Janssen Pharmaceuticals, a division of Johnson & Johnson, signs an up to $818 million deal with Locus Biosciences to develop a unique approach to CRISPR gene editing. Unlike the widely known Cas9 technology that edits specific genetic code, Locus utilizes Cas3 proteins that act like Pac-Man to completely destroy targeted DNA strands. This exclusive partnership gives Janssen the rights to develop and commercialize these CRISPR-Cas3-enhanced products to fight bacterial pathogens responsible for respiratory and other organ infections.
Under the terms of the agreement, Locus receives $20 million in upfront payments and stands to earn up to $798 million in future development and commercial milestones along with royalties. The technology originates from research at North Carolina State University by scientists Chase Beisel and Rodolphe Barrangou, which Locus chief executive Paul Garofolo discovered while working as an executive in residence before spinning the company out in 2015.
Locus is already applying this destructive CRISPR technology using bacteriophages designed to target E. coli bacteria for the treatment of urinary tract infections, with clinical trials slated to begin in the third quarter of the year. By selectively removing harmful bacteria while leaving the rest of the patient's microbiome intact, this approach represents a major step forward for microbiome-targeted therapies. This strategy contrasts with traditional microbiome companies that typically focus on adding probiotics to the body.