Johnson & Johnson announced it will discontinue development of the experimental eczema drug acquired in a $1.25 billion deal, stating the asset failed to meet the company’s efficacy standards. J&J’s decision ends clinical expectations for the program and triggers internal portfolio realignment after the costly acquisition. The termination underscores execution risk in late‑stage dermatology programs and highlights the financial impact of bolt‑on M&A when candidates miss endpoints. J&J will reallocate R&D spend and may take restructuring charges tied to the abandoned asset and integration costs from the acquisition. Competitors with active dermatitis pipelines will reassess market opportunity and pricing assumptions; payers and investors will watch J&J’s communications on rationalizing the write‑off and reprioritizing dermatology priorities.