Expensive merger in the pharmaceutical industry

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Johnson & Johnson announced that it has entered into an agreement to purchase Momenta Pharmaceuticals, a manufacturer of drugs for autoimmune diseases. This is one of the largest transaction on the pharmaceutical market this year.

Finalisation of the transaction in 2020

Under the terms of the transaction, which have been approved by the boards of directors of both companies, Vigor Sub, Inc., a newly formed 100% owned subsidiary of Johnson & Johnson, will commence a tender offer to purchase all outstanding Moments shares for $52.50 per share. The total transaction value is estimated at $6.5bn. The transaction is expected to close in the second half of 2020.

The acquisition will increase the position of Janssen Pharmaceutical, a subsidiary of Johnson & Johnson, in the market for immunological diseases. The transaction will include full rights to nipocalimab (M281), a clinically validated, potentially best-in-class anti-FcRn antibody. In addition to nipocalimab, Janssen will gain access to qualified personnel and acquire a number of Momenta’s clinical and pre-clinical assets.

Momenta: nearly 20 years of experience in the immunology market

Momenta Pharmaceuticals was established in 2001 in the United States. It is a biotechnology company with an innovative scientific platform. The company’s activity focuses on discovering and developing new drugs to treat rare immunological diseases and developing a range of biosimilar products at a late stage.

This is another acquisition in the field of companies developing treatments for immunological diseases this year. Earlier last week, Sanofi announced it had signed an agreement to acquire the U.S. biotechnology company Principia Biopharma. The transaction is scheduled for completion in the fourth quarter of 2020. Sanofi will acquire all of Principia’s issued shares at $100 per share in cash, representing a total equity of nearly $3.7bn.