Johnson & Johnson to Buy Momenta for $6.5B
Johnson & Johnson has achieved a deal to get Momenta Prescription drugs for $52.fifty for every share or $six.5 billion in an all funds deal, the businesses stated.
The valuation signifies a 70% quality to Momenta’s closing value on August 18, 2020. The company’s stock value jumped additional than 69% in premarket trading Wednesday. As of yesterday, Momenta’s stock was up 56.2% yr to date.
The deal will give J&J’s Janssen device access to nipocalimab, an experimental therapy Momenta is establishing to address autoimmune diseases. Nipocalimab is being analyzed as a therapy for myasthenia gravis, a neuromuscular sickness.
“Programs these as nipocalimab have the likely to improve the lives of countless individuals suffering from autoimmune and fetal maternal diseases,” Momenta main executive officer Craig Wheeler stated in a statement. “This acquisition provides potent value for our shareholders and guarantees a amount of expenditure in our interesting portfolio that will further more boost its likely for individuals.”
J&J also reiterated its 2020 modified earnings for every share forecast.
“We come across the deal modestly stunning as we see each a single of Momenta’s belongings as fairly tricky to build,” BTIG analyst Thomas Shrader stated. Shrader stated it was tricky to visualize a better bid for the corporation.
“Janssen will have the likely to introduce numerous launches, numerous as very first-in-course indications with likely for major peak yr profits, some of which could exceed $one billion,” Johnson & Johnson stated in a statement.
The deal arrives times soon after a identical transfer by Sanofi. On Monday, the French drugmaker announced it experienced achieved an agreement to get Principia Biopharma for $three.six billion, or $a hundred for every share, in a bid to bolster its have portfolio of autoimmune therapies.
The transaction is expected to near in the 2nd 50 percent of 2020.
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