What happened
Shares of Momenta Pharmaceuticals (NASDAQ: MNTA) went up Wednesday after the biotechnology company announced it had agreed to be acquired by Johnson and Johnson (NYSE: JNJ). At 1:40 a.m. EDT, Momenta’s share was up 69%.
So what
The all-cash deal values Momenta at $ 6.5 billion, or $ 52.50 per share – a 70% premium to its August 18 closing price. In return, J&J would acquire full world rights to Momenta’s experimental antibody, nipocalimab, which could potentially be used to treat a number of autoimmune diseases. J&J would also receive Momenta’s pipeline of clinical and pre-clinical assets.
JNJ believes that sales of nipocalimab alone could eventually reach $ 1 billion annually.
Momenta Pharmaceuticals’ share ran on news of its acquisition deal with Johnson & Johnson. Image Source: Getty Images.
“This acquisition provides strong value for our shareholders and provides a level of investment in our exciting portfolio that will further enhance its potential for patients,” said Craig Wheeler, CEO of Momenta, in a press release.
Well what
Taking over Momentum could strengthen J & J’s position in the field of immune media diseases and expand into new markets. J&J executive vice president Jennifer Taubert said the deal would provide the healthcare giant with “a key catalyst for sustained growth” if it drives the auto-disease market.
“Auto-antibody-driven diseases are often serious, and patients are underestimated by current treatment options,” Taubert said. “We are excited about the opportunity to further advance patient care by combining Johnson & Johnson’s world-class R&D, commercial and supply chain capabilities with Momenta’s talented people, pipeline and deep expertise in this key area.”
The deal is expected to close in the second half of 2020.
