Janssen drops deal with Orexo for OX-CLI/OX-ESI

US health care major Johnson & Johnson INYSE: JNJ) subsidiary Janssen has decided to end research collaboration and license agreement with Swedish firm Orexo regarding the OX-CLI and OX-ESI programs and a third, undisclosed Janssen program. Each party has regained all commercial rights for its respective drug discovery programs.

As a result, says Orexo, the OX-CLI and OX-ESI programs, focusing on discovering and developing innovative new treatments for asthma, chronic obstructive pulmonary disease and other inflammatory diseases, will be closed. The original deal, signed in June 2010, could have been worth around $600 million to the Swedish drugmaker.

Commenting on the situation, Orexo chief executive Anders Lundstrom said: “It was obviously a disappointment to us that our collaboration on two projects in the arachidonic acid field with Janssen Pharmaceuticals has been ended. Unfortunately, we lack the funds to continue on our own to develop the OX-CLI and OX ESI projects and have therefore decided to close them down.”