Johnson & Johnson to Invest in Achillion

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 [e-mail]

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