Janssen, Theravance in deal for intestinally-restricted JAK inhibitor

The Janssen Biotech Inc. unit of Johnson & Johnson (NYSE:JNJ) and Theravance Biopharma Inc. (NASDAQ:TBPH) entered into a deal to co-develop and commercialize Theravance's pan-Janus kinase (JAK) inhibitor TD-1473 and related back-up compounds in inflammatory intestinal diseases, such as ulcerative colitis (UC) and Crohn's disease. The news sent Theravance's stock up $3.57 (15%) to $28.01 on Wednesday.

Theravance will receive $100 million in upfront cash. If J&J opts to continue the collaboration after two planned studies read out, it would pay Theravance another $200 million. Theravance would then be eligible for an additional $700 million in milestones, plus royalties on ex-U.S. sales...