Johnson & Johnson discontinued its experimental eczema drug JNJ‑5939 (NM26) after the candidate failed to meet efficacy standards in a mid‑stage trial, the company disclosed. J&J acquired the asset in a $1.25 billion deal in 2024; ending development represents a material write‑down on a high‑profile acquisition. The failure underscores execution risk in dermatology biologics and raises questions about due diligence in expensive M&A deals. Analysts expect J&J to reallocate R&D resources to higher‑probability programs and to review governance on acquisition milestones and integration plans.