J&J Buys License Option for Isis Pharma Bowel Drug

US over-the-counter drugmaker Johnson & Johnson will pay Isis Pharmaceuticals up to $835 million for the option to license three drugs targeting autoimmune diseases in the bowel.

Isis Pharmaceuticals said it will receive $35 million in an upfront payment and will be eligible to receive royalties on sales of the drugs.

Janssen Biotech, a unit of Johnson & Johnson, will have the right to license a drug from each of the programs once a candidate is identified, the Carlsbad, California-based developer said.