Johnson & Johnson to Buy Momenta Pharmaceuticals for $6.5 Billion
August 19 2020 - 7:21AM
Dow Jones News
By Colin Kellaher
Johnson & Johnson on Wednesday said it agreed to buy Momenta
Pharmaceuticals Inc. for about $6.5 billion, or $52.50 a share, in
cash.
The deal represents a roughly 70% premium to Tuesday's closing
price of $30.81 for Momenta, a Cambridge, Mass., biotechnology
company focused on developing treatments of rare immune-mediated
diseases.
Johnson & Johnson said the deal would broaden the position
of its Janssen Pharmaceutical Cos. unit in immune-mediated diseases
and allow the unit to expand into autoantibody-driven disease.
Momenta's lead asset, nipocalimab, recently received
rare-pediatric-disease designation from the U.S. Food and Drug
Administration for the prevention of hemolytic disease of the fetus
and newborn, a serious blood disorder. Johnson & Johnson said
it expects nipocalimab to contribute to Janssen's goals of
achieving above-market growth over the mid and long term.
Johnson & Johnson said it expects to complete the
acquisition by the end of the year.
Shares of Momenta surged 68% to $51.86 in premarket trading
Wednesday.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
August 19, 2020 07:06 ET (11:06 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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