Johnson & Johnson to Buy Momenta for $6.5B

Johnson & Johnson has achieved a offer to get Momenta Prescribed drugs for $fifty two.50 per share or $six.5 billion in an all dollars offer, the firms said.

The valuation represents a 70{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} top quality to Momenta’s closing cost on August 18, 2020. The company’s inventory cost jumped additional than 69{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} in premarket buying and selling Wednesday. As of yesterday, Momenta’s inventory was up 56.two{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} 12 months to date.

The offer will give J&J’s Janssen unit entry to nipocalimab, an experimental therapy Momenta is acquiring to handle autoimmune disorders. Nipocalimab is becoming tested as a procedure for myasthenia gravis, a neuromuscular sickness.

“Programs this sort of as nipocalimab have the opportunity to improve the life of many individuals suffering from autoimmune and fetal maternal disorders,” Momenta main govt officer Craig Wheeler said in a statement. “This acquisition provides potent worth for our shareholders and makes sure a level of investment in our remarkable portfolio that will even more greatly enhance its opportunity for individuals.”

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

“We find the offer modestly stunning as we see each and every just one of Momenta’s belongings as to some degree tricky to produce,” BTIG analyst Thomas Shrader said. Shrader said it was tricky to imagine a increased bid for the enterprise.

“Janssen will have the opportunity to introduce a number of launches, many as first-in-class indications with opportunity for considerable peak 12 months profits, some of which could exceed $1 billion,” Johnson & Johnson said in a statement.

The offer will come days immediately after a related transfer by Sanofi. On Monday, the French drugmaker introduced it experienced achieved an arrangement to get Principia Biopharma for $3.six billion, or $100 per share, in a bid to bolster its own portfolio of autoimmune therapies.

The transaction is expected to near in the 2nd half of 2020.

Robin Utrecht/SOPA Images/LightRocket by way of Getty Images

Janssen, Johnson & Johnson, Momenta Prescribed drugs