Advertisement

Johnson & Johnson buys drugmaker Momenta for $6.5B

Johnson & Johnson buys drugmaker Momenta for $6.5B
Wednesday's acquisition of Momenta will be an all-cash deal, the company said. File Photo by Justin Lane/EPA-EFE

Aug. 19 (UPI) -- U.S. pharma company Johnson & Johnson announced Wednesday it will buy drugmaker Momenta in a $6.5 billion deal, as it seeks to expand its presence in the autoimmune diseases market.

Massachusetts-based Momenta will become part of Johnson & Johnson's Janssen pharmaceutical unit. The purchase will be completed at $52.50 per share -- a 70.4% premium to Momenta's closing price on Tuesday.

Advertisement

The company said the key to the deal was Momenta's "nipocalimab" antibody, which has been shown effective in treating autoimmune diseases like maternal-fetal and neuro-inflammatory disorders, rheumatology, dermatology and autoimmune hematology.

Nipocalimab recently received a rare pediatric disease designation from the Food and Drug Administration, the company noted.

"This acquisition broadens Janssen's leadership in autoimmune diseases and provides us with a major catalyst for sustained growth," Jennifer Taubert, Johnson & Johnson's worldwide chairwoman for pharmaceuticals, said in a statement. "Autoantibody-driven diseases are often serious, and patients are underserved by current treatment options."

In autoantibody-driven diseases, the body's antibodies attack or damage its own proteins, cells and tissues. Nearly 200 million people worldwide, or 2.5% of the global population, have some form of autoantibody-driven disease, some of which are rare.

Advertisement

Wednesday's acquisition will be an all-cash deal, the company said.

Latest Headlines

Advertisement
Advertisement

Follow Us

Advertisement