Johnson & Johnson halted development of an experimental eczema drug it acquired for $1.25 billion, the company disclosed, after the candidate failed to meet internal efficacy standards. The decision ends expectations tied to the 2024 acquisition and will remove the asset from J&J’s dermatology pipeline. The write-down signals continued risk in late‑stage dermatology R&D and reshapes M&A returns for investors who paid for near‑clinical assets. The move underscores the challenge of translating early promise into robust clinical benefit.