J&J CEO sets 2030 cancer cure goal after $1 billion Firefly deal

Johnson & Johnson's chief executive said curing certain cancers within this decade is a realistic target, laying out a vision backed by the company's $1 billion acquisition of a KRAS-targeting biotech.

Johnson & Johnson Chairman and Chief Executive Joaquin Duato said curing certain cancers and turning others into chronic diseases by 2030 is a realistic goal, as the healthcare group accelerates its push into oncology through acquisitions.

"We believe the proprietary Firelink platform will overcome the limitations of current treatments and diversify our pipeline with preclinical candidates for treating multiple types of solid tumors," John Reed, executive vice president of innovative medicine R&D at J&J, said in a statement announcing the deal.

J&J on Monday agreed to buy South San Francisco-based Firefly Bio for $1 billion in cash. The biotech's Firelink degrader antibody conjugate platform targets KRAS-driven tumors, a mutation found in nearly a quarter of all human cancers. Firefly emerged from stealth mode about two years ago with $94 million in first-round financing from investors including Versant Ventures, MPM and Eli Lilly.

The acquisition strengthens J&J's ambition to become the No. 1 oncology company by 2030, Duato said Wednesday at the WSJ Leadership Institute CEO Summit in London. The deal is expected to close later this year pending regulatory approvals, adding preclinical candidates that target what has long been considered an undruggable protein.

J&J is already active in the KRAS space through a partnership with Jacobio Pharma on glecirasib, an oral KRAS G12C inhibitor heading for phase 3 trials in non-small cell lung cancer and colorectal cancer. The Firefly acquisition extends that reach into pan-KRAS molecules designed to target all variants of the protein, rather than a single mutation.

The KRAS class has drawn intense interest from drug developers. At the American Society of Clinical Oncology meeting this month, Revolution Medicines' daraxonrasib — a pan-RAS inhibitor — delivered what analysts called unprecedented survival improvement in pancreatic cancer, where about 90% of cases carry a KRAS mutation. Amgen's Lumakras and Bristol Myers Squibb's Krazati are the only two approved KRAS inhibitors to date, but a wave of next-generation candidates from Eli Lilly, Genfleet and others is advancing through clinical trials.

Duato said artificial intelligence is already helping J&J develop medicines faster, though the extent of its impact on the company's bottom line remains to be seen. The company's long-term aspiration, he said, is to eliminate cancer and contribute to increased life expectancy with high quality of life.

The $1 billion Firefly deal is modest relative to J&J's market capitalization of about $400 billion, but it shows the company's willingness to pay for platform technologies that could address multiple cancer types. Investors will watch for clinical data from Firefly's preclinical candidates, which could take several years to reach human trials.

This article is for informational purposes only and does not constitute investment advice.