Johnson & Johnson to Buy Momenta for $6.5B

Johnson & Johnson has reached a deal to obtain Momenta Pharmaceuticals for $fifty two.fifty per…

Johnson & Johnson has reached a deal to obtain Momenta Pharmaceuticals for $fifty two.fifty per share or $six.five billion in an all funds deal, the corporations mentioned.

The valuation represents a 70% premium to Momenta’s closing rate on August 18, 2020. The company’s inventory rate jumped more than sixty nine% in premarket trading Wednesday. As of yesterday, Momenta’s inventory was up fifty six.two% calendar year to date.

The deal will give J&J’s Janssen unit access to nipocalimab, an experimental therapy Momenta is building to treat autoimmune diseases. Nipocalimab is getting examined as a treatment method for myasthenia gravis, a neuromuscular condition.

“Programs this sort of as nipocalimab have the probable to enhance the life of countless people suffering from autoimmune and fetal maternal diseases,” Momenta main govt officer Craig Wheeler mentioned in a statement. “This acquisition provides robust value for our shareholders and makes certain a level of financial commitment in our thrilling portfolio that will further enrich its probable for people.”

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

“We come across the deal modestly stunning as we see every one of Momenta’s belongings as relatively challenging to develop,” BTIG analyst Thomas Shrader mentioned. Shrader mentioned it was tough to think about a greater bid for the enterprise.

“Janssen will have the probable to introduce multiple launches, a lot of as initial-in-course indications with probable for considerable peak calendar year sales, some of which could exceed $1 billion,” Johnson & Johnson mentioned in a statement.

The deal comes days following a very similar go by Sanofi. On Monday, the French drugmaker declared it had reached an agreement to obtain Principia Biopharma for $three.six billion, or $one hundred per share, in a bid to bolster its very own portfolio of autoimmune therapies.

The transaction is expected to near in the next 50 percent of 2020.

Robin Utrecht/SOPA Illustrations or photos/LightRocket via Getty Illustrations or photos

Janssen, Johnson & Johnson, Momenta Pharmaceuticals