Johnson & Johnson terminated development of its experimental eczema candidate JNJ‑5939 (NM26) after a Phase 2 trial did not meet efficacy thresholds, ending hopes tied to the $1.25 billion acquisition made in 2024. J&J said the program failed to reach the company’s internal efficacy standards and will be removed from its pipeline priorities. The failure underscores persistent clinical risk in dermatology biologics and the cost of late‑stage setbacks following expensive transactions. Investors and competitors will reassess valuations and go‑forward strategies for similar modality approaches; J&J’s decision will also influence potential licensing or divestiture talks for related assets.