Morphic reveals that Janssen has terminated agreement

Waltham, Massachusetts, USA-based biotech Morphic Therapeutic announced I a Securities and Exchange Commission (SEC) filing that Johnson & Johnson (NYSE: NJN) subsidiary Janssen Pharmaceuticals has elected to terminate the research collabora/tion and option agreement between the companies dated December 30, 2020, and as further expanded and amended.

The termination will be effective within 60 days of January 13, 2023. Parent company Morphic Holding’s (Nasdaq: MORF) shares closed up almost 3% at $30.65 following the announcement.

Under the terms of the Collaboration Agreement, Morphic granted Janssen exclusive license options on certain product candidates directed at multiple targets. The termination follows Janssen’s delivery of notice to the company that it did not intend to exercise its options on the first two integrin targets under the Collaboration Agreement due to lack of target validation in the specific disease of Janssen’s interest. Effective upon the termination of the Collaboration Agreement, all rights and licenses granted thereunder shall immediately terminate.