February 22, 2024

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Johnson & Johnson to Buy Momenta for $6.5B

Johnson & Johnson has reached a deal to acquire Momenta Prescribed drugs for $52.fifty per share or $six.five billion in an all income deal, the firms mentioned.

The valuation signifies a 70{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} top quality to Momenta’s closing rate on August 18, 2020. The company’s inventory rate jumped a lot more than 69{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} in premarket buying and selling Wednesday. As of yesterday, Momenta’s inventory was up 56.two{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} calendar year to date.

The deal will give J&J’s Janssen unit accessibility to nipocalimab, an experimental remedy Momenta is building to take care of autoimmune ailments. Nipocalimab is staying analyzed as a cure for myasthenia gravis, a neuromuscular ailment.

“Programs this kind of as nipocalimab have the likely to make improvements to the lives of plenty of people struggling from autoimmune and fetal maternal ailments,” Momenta main executive officer Craig Wheeler mentioned in a assertion. “This acquisition gives robust price for our shareholders and ensures a stage of financial commitment in our enjoyable portfolio that will further greatly enhance its likely for people.”

J&J also reiterated its 2020 altered earnings per share forecast.

“We locate the deal modestly stunning as we see every 1 of Momenta’s assets as considerably tricky to acquire,” BTIG analyst Thomas Shrader mentioned. Shrader mentioned it was difficult to visualize a better bid for the corporation.

“Janssen will have the likely to introduce a number of launches, lots of as very first-in-class indications with likely for important peak calendar year gross sales, some of which could exceed $one billion,” Johnson & Johnson mentioned in a assertion.

The deal arrives times just after a comparable transfer by Sanofi. On Monday, the French drugmaker introduced it experienced reached an settlement to acquire Principia Biopharma for $3.six billion, or $a hundred per share, in a bid to bolster its have portfolio of autoimmune therapies.

The transaction is anticipated to shut in the next 50 {79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} of 2020.

Robin Utrecht/SOPA Visuals/LightRocket by using Getty Visuals

Janssen, Johnson & Johnson, Momenta Prescribed drugs